LiveStorage™ Training: Sales Schemes
One of the most powerful capabilities of LiveStorage is how the software helps you manage pricing, discounts, margins, and labor rates through the use of Sales Schemes. Every Sales Scheme includes a listing of every orderable item and lets you use formulas to set individual prices for material and labor. It also has the ability to apply two levels of tax rates separately for Material and Labor, along with entering the Labor Rate. Another powerful function is the ability to set the profit Margin percentage and Dealer Multiplier for an order.
Near the top of the Sales Scheme dialog box is a check-box that can be used to indicate if you want pricing to appear on the Parts List. Un-checking this box will suppress all pricing information.
Sales Schemes are accessed by using the Settings (#1) pull-down menu:
Selecting an existing Sales Scheme
You can set-up various sales schemes to handle different selling situations. After a Sales Scheme is established it can be selected by using Select Sales Scheme… You can select it to be used for the current design file and apply it to the Parts List. Selecting this function will present a simple dialog box that shows the name of the current Sales Scheme being used in your design.
Use the down arrow to the right of the box (#2) to see all of the available Sales Schemes.
The Sales Scheme dialog box has two primary sections:
The left side (#1) of the Sales Scheme shows the Part Number, Description, List price, and Time as established by the manufacturer. Please note that there is a scroll bar (#3) that can be used to see every orderable item in the catalog. The right side (#2) of the Sales Scheme shows the Material, Labor, and Total values as calculated using formulas.
When the Default (#4) Sales Scheme is selected, you can not edit any of the grayed-out boxes, but you can set the Material and Labor Tax rates, Labor Rate, Margin, and Dealer Multiplier. If you want to edit formulas used to calculate Material and Labor, you must use the Add… (#5) function and create your own Sales Scheme.
Margin (#6): The value shown in the Margin box is used to determine the sale price to the end customer by increasing your product cost (as set by the manufacturer) by the gross Margin percentage. Example: Gross margin is defined as the percentage of (sale price – purchase price) / sale price. If an item you purchase from the manufacturer costs you $30, and you have a gross Margin value of 10%, the sale price for that item will be $33.33.
Dealer Multiplier (#7): The value shown in the Dealer Multiplier box is used to calculate the dealer cost by multiplying the List Price by the Dealer Multiplier. Example: If an item has a list price of $100 and the Dealer Multiplier is .3, the dealer cost for that item will be $30.00
Editing a Sales Scheme
When you have added your own new Sales Scheme (in addition to the Default Sales Scheme), you can edit it to accurately reflect your specific cost and pricing needs. Make sure that your desired Sales Scheme is active by clicking on the appropriate tab near the top (#1).
Default Formulas are used in all Sales Schemes, unless there is a specific value entered for a Part Number. Default Formulas can be edited by clicking on the … (#2) immediately to the right of the Material and Labor formulas in the Default Formula section. After clicking on the … a dialog box will be presented where you can edit the Default Formulas (#3).
Tip: You can search for a specific part number by clicking on the column heading Part Number and then typing in the part number you want. The system will automatically navigate to the Part Number you’ve typed.
To change the Material and Labor amounts for a specific item, double-click on the Material/Labor value on the right side of the screen (#1).
This will cause a dialog box to appear where you can set the specific values by entering a formula:
The formula can be generated by using Values (#3), Symbols (#4), and numbers in the large white box (#2). You can enter a number (such as 150) or a formula by clicking on a combination of Values and Symbols in combination with numbers.
For example, if you want the price to be 50% of List, you can click on List (from the Values section) then * (from Symbols section), and then enter .5. Another example is List * Dealer Mult * .9, which will result in a value that is 90% of the value of List * Dealer Mult.
After you have modified either the Material and/or Labor values, you will see an * (#5) in the left most column on the right side of the Sales Scheme in the row where the modified value can be found. The * indicates that the default values are overridden by another formula in that row.
Setting Passwords for Sales Schemes
You can activate a password for Sales Schemes. This may be done to purposely limit the people who have the authority to set the purchase and sell prices of your products and services.
Clicking on the Set Password button will result in a dialog box:
Activating passwords still allow for the selection of any Sales Scheme, but any editing of the Sales Schemes will require the password to be entered. Be sure to remember your password because you will need it to edit Sales Schemes.