Pricing Using Global Ad Pricing
The third pricing mechanism we are going to discuss takes us back to the inventory item file and allows us to set a fixed dollar price for a given inventory item that applies to all customers. This is the Global Ad Pricing option. The global ad price is set up in the inventory item file and you can set date parameters so that the ad price only applies within a certain date range (Figures 6). During this time, the ad price overrides all other pricing mechanism as long as the ad price is lower. That is to say, if you have a current ad price set up for the item, but one of the price brackets is set such that it calculates a price lower than the ad price, any customers assigned to that bracket will be charged the bracket price (because it is lower than the ad price). When an order is being entered for an item that has a global ad price in effect, The Application first calculates the normal price which the customer would be charged if the ad price were not in effect, then calculates the ad price, compares the two prices, and then chooses the lower of the two prices to appear on the order-entry screen. Therefore, an ad price will only be used if it offers the customer a discount on their normal price, never if it raises the price.
Figure 6: The Global Ad Price Mechanism
SUMMARY OF PRICING USING GLOBAL AD PRICING
Setting up a global ad price along with a beginning date and an ending date for the ad overrides all other pricing options for that item within the specified date range, unless the normal price calculation is less than the ad price.
How it is implemented: The fixed dollar price and the beginning and ending dates for the ad are entered on the Pricing Information tab on the Inventory File Maintenance form (Section II - Setting Up Inventory).
Advantages: Allows you to set a price for a given inventory item that applies to all customers. The price can be set up with date parameters.
Disadvantages: Only allows for a set dollar price – no percentage or dollar markup that fluctuates with cost. Does not allow exceptions for charging some customers higher prices.