As you add items to an offer pixi* calculates margin for each offer line and the whole offer. This information will help you win the sale by offering additional discounts, but will also warn you when the discount per item or offer becomes too big.
Fresh from pixi* Development - Margin Calculation for Offers
Our development department shows a summary of the functionality, in a "Fresh from pixi* Development" video.
https://vimeo.com/100785757
Fresh from pixi* Development: Margin calculation for offer lines and offers, length ca. 8 minutes, language: English
Configuration
Margin calculation will work properly if these DB settings in Control Center > Customer Service > Offers are set:
Lowest margin allowed per offer in %
Medium margin allowed per offer in %
Default imputed supplier price in % (optional)
View margin information
Point to the information icon in the offer header to see the calculated margin for the whole offer. Point to the information icon in the offer line to see the calculated margin for that line.
Information icon changes colour according to the calculated margin:
The icon is black
if the calculated margin is bigger than the medium allowed margin.
The icon is orange
if the calculated margin is smaller than the medium allowed margin and bigger than lowest allowed margin.
The icon is red
if the calculated margin is lower than the lowest allowed margin.
Note: You can change the status of an offer to WON even if the margin for the offer is lower than the lowest allowed margin. In this case you need to add a note with a reason for this action.
Calculation of the margin
Imputed supplier price for items and bundles
To properly calculate margins pixi* needs imputed supplier price for each item. You can set imputed supplier price manually or have it calculated automatically by pixi*.
Enter imputed supplier price manually in the Item object > General > Item Information > Imputed Supplier Price.
If the imputed price is not set manually per item, it is calculated automatically by pixi*. To calculate the imputed supplier price pixi* takes the supplier price from the last delivery of this item and adds the percentage from the Default imputed supplier price in % DB Setting.
Imputed price can be manually entered also for bundles in the same way as for normal items. If you don't enter it manually, pixi* automatically calculates it from the imputed prices of bundled items.
Current imputed supplier price per item is saved with each offer line. This ensures that you can always check how the margin was calculated at the time when the offer was created.
Examples for the calculation
The margin for offers and offer lines is calculated as follows:
Net selling price refers to net item price incl. discount on the offer line (column name in the user interface: Final Net Price)
Margin in € per item = net selling price - imputed supplier price
Margin in % per item = ((net selling price - imputed supplier price) / net selling price) * 100
Margin in € per offer line = Margin in € per item * offer line qty.
Margin in % per offer line = Margin in % per item
Margin in € per offer = sum(Margin in € per offer line for all offer lines)
Margin in % per offer = (((net lines total from offer header - general discount) - SUM(imputed supplier price * qty for all offer lines)) / (net lines total from offer header - general discount)) * 100
Example 1 - No Discount
Item Name |
Net Selling Price |
Imputed Supplier Price |
Qty |
Margin € per Item |
Margin € per Line |
Margin % per Line |
item A |
100€ |
60€ |
5 |
100€ - 60€ = 40€ |
40€ * 5 = 200€ |
((100€ - 60€) / 100€) = 0,4 * 100 = 40% |
item B |
120€ |
60€ |
10 |
120€ - 60€ = 60€ |
60€ * 10 = 600€ |
((120€ - 60€) / 120€) = 0,5 * 100 = 50% |
SUM |
15 |
800€ |
Margin for the whole offer:
net sales = (100€ * 5) + (120€ * 10) = 1700€
cost of goods sold = (60€ * 5) + (60€ * 10) = 900€
margin in % = (1700€ - 900€) / 1700€) = 0,4706 * 100 = 47,06%
margin in € = (1700€ - 900€) = 800€
Example 2 - Including Discount
item Name |
Net Selling Price |
Discount |
Final Net Price |
Imputed Supplier Price |
Qty |
Margin € per Item |
Margin € per Line |
Margin % per Line |
item A |
100€ |
10% |
90€ |
60€ |
5 |
90€ - 60€ = 30€ |
30€ * 5 = 150€ |
((90€ - 60€) / 90€) = 0,3333 * 100 = 33,33% |
item B |
120€ |
20€ |
100€ |
60€ |
10 |
100€ - 60€ = 40€ |
40€ * 10 = 400€ |
((100€ - 60€) / 100€) = 0,4 * 100 = 40% |
Margin for the whole offer:
net sales = (90€ * 5) + (100€ * 10) = 1450€
cost of goods sold = (60€ * 5) + (60€ * 10) = 900€
margin in % = (1450€ - 900€) / 1450€) = 0,3797 * 100 = 37,97%
margin in € = 550€
Margin for the whole offer incl. 10% discount:
net sales = ((90€ * 5) + (100€ * 10)) = 1450€ - (0,1 * 1450€) = 1305 €
cost of goods sold = (60€ * 5) + (60€ * 10) = 900€
margin in % = (1305€ - 900€) / 1305€) = 0,3103 * 100 = 31,03%
margin in € = 1305€ - 900€ = 405€
Example 3 - Bundles
A bundle item includes 3 normal items. Database setting Default imputed supplier price in % is set to 3.
Item name |
Quantity in the bundle |
Supplier price(in EUR) |
Imputed supplier price (in EUR) |
Price used for calculation of imputed supplier price for the bundle (in EUR) |
Item A |
1 |
3,20 |
Not set |
3,20 + 3% = 3,3 |
Item B |
2 |
6 |
6,50 |
2 * 6,50 = 13 |
Item C |
5 |
1 |
Not set |
5 * (1+3%) = 5,15 |
Imputed supplier price for the bundle in this case is 21,45 EUR.