Cost Based Pricing is a pricing method where the costs of components, such as, material cost, labor cost, and machine cost are added together to create a total cost. A markup or margin is added to the total cost to calculate a price. CoreBridge allows for both Cost Plus - Margin and Cost Plus - Markup pricing. Pricing methods are applied in assemblies. For more information on Assemblies, please see Assembly Overview.
Note: CoreBridge does allow for Market Based pricing and Custom Formula pricing. For more information on Market Based pricing, please see Market Based Pricing. For custom formulas, help with tables, and help with pricing, please contact your Customer Success Manager (CSM) at [email protected].
Table of Contents
To find all Assemblies, navigate to Settings / Components / Assemblies.
Setting up Cost Plus - Margin Pricing
In Cost Plus - Margin Pricing, the system adds together the components of material, labor, and machine costs and stores the cost values for reporting. Once total cost is established, the system adds the margin to the total cost to calculate a price. Additional optional custom charges, such as, custom waste charges can be added to the calculated price.
1. Navigate to Settings / Components / Assemblies.
2. Select an Assembly.
3. Go to the Pricing tab.
4. Click Expand All.
5. Go to the top section, Active Pricing Method and Formula Customizations.
a. Select Cost Plus - Margin - The formula calculation displayed is based on the formula customizations that are selected.
Note: As selections are made below the formula will change to display those selections.
b. Pre-Discount - Additional charges, such as, custom waste calculations can be added to the calculated price prior to applying any discounts by default in the assembly.
c. Post-Discount - Additional charges, such as, custom waste calculations can be added to the calculated price after applying any discounts by default in the assembly.
Note: For more on Custom Waste Calculation, go to step 7 , Assembly Settings in this article.
d. Assembly Minimums - Setting Minimum Price Per Each Item and a Minimum Total Price can be set by default in the assembly. This will charge a minimum regardless of the quantity and/or total calculated price up to this minimum.
e. Assembly Fees - Setting a One-Time Fee and a Per Item Quantity Fee can be set by default in the assembly. This will apply a one time fee and/or a per item quantity fee in addition to the calculated total cost plus margin price.
6. Go to the Tables section. Build your margin and/or discount tables that will be applied to total cost. For custom tables and assistance with tables, please contact your Customer Support Manager at [email protected].
a. Click on the Margin table.
b. Enter margin percentages by Total Area Square Footage. Customize margins and total sq. ft. area ranges.
Example: A total area of 20 sq ft would have a 50% margin added to calculate price. A total area of 21 sq ft would have a 45% margin added to the calculated price. All values can be customized.
c. Click the Plus icon to add more columns. Additional sq ft breaks can be added.
d. Tables built in the system are based on a default pricing tier. Additional pricing tiers can be added, such as, Wholesale. Go to Settings / Sales / Pricing Tiers.
e. Click on the Ellipsis in the upper corner to edit table properties or clear all table values. Column variable, table breaks defined and number displayed can be changed.
Note: Field greyed out can not be changed on the Edit Table screen.
f. Click on Discount - This will setup a default discount table for this assembly.
g. Enter discount percentages by Total Area Square Footage. Customize discounts and total sq. ft. area ranges.
Example: A total area of 20 sq ft would have a 1% discount applied to the calculate price. A total area of 21 sq ft would have a 2% discount applied to the calculated price. All values can be customized.
7. Go to the Assembly Settings section.This will allow for default sizes, custom waste, machine, and labor settings as defaults in the assembly. This section could vary depending on the assembly.
a. Assembly Defaults - These are default assembly settings that will be set for order entry. Default assembly sizes, and check to enable 2nd side printing can all be set here for order entry.
b. Include Machine - This is used for cost based pricing for the ability to include or not include the machine cost in calculating total cost. Further customization to exclude visibility of the machine from order entry, however, the costs associated with the machine will be included. Machine waste calculations can be set to charge cost only, use custom margin to allow a % of waste, or exclude waste from the calculation.
c. Include Labor - This allows for additional machine labor for setup time and machine speed.
Note: If machine is excluded you can still add additional production labor here.
8. Go to the Advanced section. This section can vary by assembly.
a. Assembly Discount - This allows for a percentage, flat amount or formula discount to be visible to the customer.
b. Calculated Item Quantity - This can enable a calculated item quanity for order entry instead of entering an assembly quantity.
Example: In the case of garments, a sum of line item quantities can be calculated for the assembly quantity.
9. Click Save.
Setting up Cost Plus - Markup Pricing
In Cost Plus - Markup Pricing, the system adds together the components of material, labor, and machine costs and stores the cost values for reporting. Once total cost is established, the system adds the markup to the total cost to calculate a price. Additional optional custom charges, such as, custom waste charges can be added to the calculated price.
1. Navigate to Settings / Components / Assemblies.
2. Select an Assembly.
3. Go to the Pricing tab.
4. Click Expand All.
5. Go to the top section, Active Pricing Method and Formula Customizations.
a. Select Cost Plus - Markup - The formula calculation displayed is based on the formula customizations that are selected.
Note: As selections are made below the formula will change to display those selections.
b. Pre-Discount - Additional charges, such as, custom waste calculations can be added to the calculated price prior to applying any discounts by default in the assembly.
c. Post-Discount - Additional charges, such as, custom waste calculations can be added to the calculated price after applying any discounts by default in the assembly.
Note: For more on Custom Waste Calculation, go to step 7, Assembly Settings in this article.
d. Assembly Minimums - Setting Minimum Price Per Each Item and a Minimum Total Price can be set by default in the assembly. This will charge a minimum regardless of the quantity and/or total calculated price up to this minimum.
e. Assembly Fees - Setting a One-Time Fee and a Per Item Quantity Fee can be set by default in the assembly. This will apply a one time fee and/or a per item quantity fee in addition to the calculated total cost plus markup price.
6. Go to the Tables section. Build your markup and/or discount tables that will be applied to total cost. For custom tables and assistance with tables, please contact your Customer Support Manager at [email protected].
a. Click on the Markup table.
b. Enter markup percentages by Total Area Square Footage. Customize markups and total sq. ft. area ranges.
Example: A total area of 20 sq ft would have a 50% markup added to calculate price. A total area of 21 sq ft would have a 45% markup added to the calculated price. All values can be customized.
c. Click the Plus icon to add more columns. Additional sq ft breaks can be added.
d. Tables built in the system are based on a default pricing tier. Additional pricing tiers can be added, such as, Wholesale. Go to Settings / Sales / Pricing Tiers.
e. Click on the Ellipsis in the upper corner to edit table properties or clear all table values. Column variable, table breaks defined and number displayed can be changed.
Note: Field greyed out can not be changed on the Edit Table screen.
f. Click on Discount table - This will setup a default discount table for this assembly.
g. Enter discount percentages by Total Area Square Footage. Customize discounts and total sq. ft. area ranges.
Example: A total area of 20 sq ft would have a 1% discount applied to the calculate price. A total area of 21 sq ft would have a 2% discount applied to the calculated price. All values can be customized.
7. Go to the Assembly Settings section.This will allow for default sizes, custom waste, machine, and labor settings as defaults in the assembly. This section could vary depending on the assembly.
a. Assembly Defaults - These are default assembly settings that will be set for order entry. Default assembly sizes, and check to enable 2nd side printing can all be set here for order entry.
b. Include Machine - This is used for cost based pricing for the ability to include or not include the machine cost in calculating total cost. Further customization to exclude visibility of the machine from order entry, however, the costs associated with the machine will be included. Machine waste calculations can be set to charge cost only, use custom margin to allow a % of waste, or exclude waste from the calculation.
c. Include Labor - This allows for additional machine labor for setup time and machine speed.
Note: If machine is excluded you can still add additional production labor here.
8. Go to the Advanced section. This section can vary by assembly.
a. Assembly Discount - This allows for a percentage, flat amount or formula discount to be visible to the customer.
b. Calculated Item Quantity - This can enable a calculated item quanity for order entry instead of entering an assembly quantity.
Example: In the case of garments, a sum of line item quantities can be calculated for the assembly quantity.
9. Click Save.
