Material Pricing Strategy

The material pricing strategy allows you to set up default margins for materials based on material group, 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.