Prophet 21's Pricing Service module enables you to create new items and handle price updates quickly, easily, and electronically. Simply insert a supplier-provided data file - usually on CD- ROM or disk - into your computer, follow a few simple steps to format the data, and upload that supplier's prices. It takes only a fraction of the time as manual data entry, and eliminates the risk of entering the wrong information.
Capability:
- Enables distributors to update prices and enter new items into their databases electronically
Benefits:
- Eliminates errors
- Saves time
- Saves money
The Effect of 30 Days
Many distributors don't realise what effect postponing a price update for just one month can have on their bottom lines. For example, many suppliers will increase the prices of their items by 2 percent on January 1. Suppose it takes you 30 days to enter that increase into your system, and you calculate customer price as 1.43 times the cost. Finally, assume that your sales during that period were £200,200, with a cost of goods equaling £140,000.
Because the 2 percent price increase was not enacted, the real cost of goods during that period equaled £142,800. If you had updated prices on January 1, your sales would have been £204,204 instead of £200,200. Your gross profit would have been £61,404 (£204,204 - £142,800) instead of £57,400 (£200,200 - £142,800) - an extra £4,004 in gross margin.
For years, many distributors postponed price updates or referred to outdated catalogs because database maintenance was so time-consuming. With Prophet 21's Pricing Service capabilities, updating prices and building new items into your database is almost effortless.
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