How to add Pricing Strategies

To set up your pricing strategies, navigate to the "Pricing Strategies" tab in the left column.

Once there, the first thing to note is that pricing strategies are set up per location. You can use the location drop-down menu to select the location for which you would like to configure a pricing strategy.

With your location selected, to make things a bit easier, let's minimize each of the four tables in our list by clicking on the arrow to the left of each name. Now we can clearly see all four sections that make up Pricing Strategies.

Customer Tiers & pricing strategy

Customer Tiers is where you can assign different levels of customer ratings, as well as a pricing strategy for each tier. You will start with four tiers by default, but you can add up to ten tiers by using the "+ TIER" button. To edit each tier, open the tier in question by clicking the arrow on the left, then find the "…" button on the right and select "Edit."

Each tier can be set to either line item pricing or basket pricing. You can also set a minimum order amount. By setting up these tiers, you will be able to associate them with customers to better automate your pricing strategy. If a customer is not assigned to a tier, they will be automatically placed on tier 4.

Line Item Pricing - If you select "Line Item" for a tiers pricing structure, then when this customer tier is used, the margin will apply at a line item level on your order, not the order as a whole.

Basket Pricing -  If you select "Basket Pricing" for a tiers pricing structure, when this customer tier is used, the margin will apply on a group of line items that fall under the same material pricing strategy.

Minimum order amount - By setting a minimum order amount, if a customer has a cart with less than your desired minimum, then the remaining value will be applied as a fee to increase the order amount to the set minimum.

example: if order is 450 then a fee of 550 will be added to total to 1000

Each tier can have a different structure as well as a unique minimum order amount.

Material Pricing Strategy

The material pricing strategy allows you to set up default margins for materials based on material type, weight, and customer tier. To add a new material pricing strategy, click "New Strategy."

Now you should see a table with weight brackets on the left and a tier table on the right. The first thing to do here is to select your material.

After clicking "Select Material," a pop-up will appear that allows you to select the material group. You can also get more specific by selecting the product type.

Once you have selected the materials and/or product types you would like this new material pricing strategy to be associated with, click "Apply." Now you can set up your weight brackets and margins per tier. Your weight brackets will always start at 0, and whatever upper limit of the previous bracket will become the lower limit of the next. With the weight brackets set up, it is now time to fill out the matrix with your material margins.

Margin

Margin, often referred to as profit margin, indicates the percentage of the selling price that is profit.

Price = Cost / (1 - % Margin)

e.g., 

Cost = $120.00

Margin = 25%

Price = $120.00 / (1 - 0.25) = $160.00

Markup

Mark-up refers to the amount added to the cost price of a product to determine its selling price:

Price = Cost * (1 + % Margin)

e.g.,

Cost = $120.00

Markup = 25%

Price = $120.00 * (1 + 0.25) = $150.00

Stella specifically uses margin.

Quote Rules

In the quote rules section, you can set up your quote validity and lead times. Quote validity refers to how long a quote can remain active without being accepted or converted into an order. If the number of days or the specified date is exceeded, the quote is no longer valid. Lead time represents the duration required to fulfill the order. To edit, select the "..." button and choose "Edit." You can then fill in the required number of days, and the date on the right will adjust accordingly.

Quote validity is measured in calendar days (includes weekends), while delivery lead time is business days (does not include weekends)

Additional charges

In the additional charges section, you can define your own extra charges to apply to your orders or quotes. To add a new charge, click on "+New Charge."

Once you click "+New Charge," you will be able to name your charge and provide your customers with a description of what this charge is for. The first major decision you need to make is whether this charge will be based on the weight of the quote or the price of the quote. After making that decision, you can set up each of your brackets on the left and apply your charges by customer tier in the matrix on the right. Once the matrix is complete, click "Save Changes."

Additional charges can include, freight and fuel surcharges.