Usually items have a single selling price, but sometimes a standard pricing variance is needed depending on the use of the item. For example, you may sell a food item as a box of 10 bags but also sell the bags individually. In this case, you can add a default price for the box option and an alternative price for individual bags so that when a client buys the food by bags, the price is a higher than for a whole box.
- Go to Catalog > Items.
- Find and open the item you want to set up with alternative pricing and go to the Stock and pricing tab.
- In the Pricing section, select + Alternative prices. A new row appears.
- Add a descriptive Name for the alternative price that helps users to understand the intent of the price. Example: 'Bag price' describes a price used when individual bags are sold instead of a whole box.
- Select the Usage size (package or unit) to specify how this price is used. Users cannot change the usage option, only the quantity. Example: Select Units to define a higher markup price when the item is sold as bags instead of a whole box.
- Add the Quantity for which you want to set the price. Example: Add '1' to set a price for a single bag of food. Users can change the quantity when selling the item, and the total price will be the sold quantity multiplied by the price set here. You can use this field to add more alternative pricing options, for example, set a separate price for 3 bags of food etc.
- Select the Price nominator:
- Purchase price: Purchase price is the price you pay for the product when you buy it from a wholesaler. When you select this option, the alternative price is based on the purchase price alone. Example: Select this option to set a higher markup for the item when selling it as bags instead of boxes.
- Net purchase price: Net purchase price is the price after the wholesaler, producer, and special discounts on the Net purchase price row in the Pricing section have been applied to the purchase price. When you select this option, the alternative price is based on the price without VAT. The net purchase price is used only for alternative prices.
- Selling price: Selling price is the price after the default markup percentage set on the Selling price row in the Pricing section has been applied to the purchase price. The alternative price is based on the price without VAT.
- Add the Markup percentage that is applied after all the previous calculations (depending on the selected price nominator). Example: Add 60% to sell the item with a 60% markup when sold as bags.
- Select Use extra fees if you want to include possible injection or handling fees defined in the Pricing section to the alternative price.
- Select Save.
To remove an alternative price from an item, select the trash bin button on the alternative price row. Note that the price will then also be removed from any estimates or item templates that use it, but not from consultations or invoices.
Default price for a box of food:
- By default, a food item is sold by boxes (packages) which contain 10 bags (units) of food.
- A box of food has a wholesale price of 20 € which is marked up by 30%, making the selling price 26 €. If 20% VAT is added, the final price for the client is 31.20 €.
- By default, the price of one bag of food is then 2.60 €, and 3.12 € with VAT. The item can also be sold as units with this price if you do not want to set an alternative price for units.
Alternative price for bags of food:
- An alternative price for one bag of food is based on the purchase price and marked up by 60% to set the selling price:
- 20 € + 60 % = 32 €
- 32 € / 10 units = 3.20 € per unit
- 3.20 € + 20% VAT = 3.84 € final unit price for the client