Are you sure you are making a profit margin on each job you work on? The pricing matrix gets you making money easy without manual entries every time.

What it is:

Pricing matrix is a guide to set and quote different pricing structures at different price points for your customers while ensuring you make a scalable gross profit.

Here's an example:

Say you buy a radiator for $700. You want to add a percentage mark up but also need to be realistic with the cost of replacing and repairing the vehicle.  So, can you justify a 60% mark up on just the radiator? 

Probably not.

A more realistic approach is to create a profit margin between 5% to 15%.

On the other hand, if you buy a small part, such as a washer for $0.50 each. Adding a 300% mark up will not change the price drastically.

Where can I find it in webSAM? :  

          Step 1) Log into webSAM

          Step 2) Under company Name > Setup > Under Maintenance

How to set it up in webSAM

Let’s look at it on a job:

Under workshop> Stock enquiry> {Choose a part in your stock}

Example 1 :

For this specific ‘Engine Oil’ (part) from The Machine Shop (supplier)

You can click on the box next to the Last cost and apply the price matrix to calculate the retail, trade and level pricing.

• Retail pricing- This is considered the market value price. It will be the default you charge out to your customer. Generally, this is where you get competitive in the market to ensure the customer does not go elsewhere to look for this same product.
• Trade pricing – This is used for returning customers. The trade price is calculated at a same or slightly lower price than the retail price (discounts).
• Level pricing- This is tier pricing which workshops customise. They may set specific pricing to match a specific part.

Example 2:  

When creating a new Purchase order > Stock order

Stock order > Choose a part form the list 

You have the option to update the retail price (calculator button)

Lastly, if the current cost is more than the previous cost calculated in the system- it will give you a warning to recalculate.

If you click ‘YES’, it will take you to the price matrix screen and you can edit (by creating new or choosing a different option in the list) or confirm the updated price.