matrix pricing

[vp]

Matrix Parts Pricing
Looking for a current Parts Matrix Pricing formula.

[Gary J. Naples]

Hi VP,

It would help if you could be more specific.

Generally speaking, the matrix pricing formula is based on item cost plus a desired markup. The logic behind it is, "as cost decreases, selling price goes up appreciably."

Nevertheless, matrix pricing is sensitive to market and competitive pressures. There is no standard formula for all markets. It would be a good idea to shop your competition, then go from there.

Gary J. Naples

[vp]

On Matrix Pricing, We have an old Matrix pricing schedule, formula, just looking for anything "new".

[Richard]

My matrix is pretty complex, and if I post it, I might get accused of having nothing better to do. I will send copies to anyone who wants it. Email me with a fax #, but be prepared, it is strange, and it is pretty complex.

"parts@lebanon.total-web.net"

[Richard]

Let me apologize to EVERYONE. When we did the conversation from EDS Partsline I to Partsline II, my matrix got reset to a default. We are rebuilding it at this time, but the work has gone slowly due to other factors, remodeling, main computer upgrade, ect. I still have every request, and should be able to send out a basic model of pretty soon. I am very sorry that I havn't been more prompt on this subject.

[Chuck Hartle]

Hello VP,

Here is a sample of a simple matrix table:

1) 0.01 - 0.99 COST + 250.00
2) 1.00 - 9.99 COST + 150.00
3)10.00 - 24.99 COST + 115.00
4)25.00 - 49.99 COST + 100.00
5)50.00 - 99.99 COST + 90.00
6)100.00 - 2000.00 COST + 70.00



Using this table you would build it off of your list price and then base the mark up off of your cost price. For example, if your list price was $49.99 and you had a cost of $30.00 is would mark up the retail price to $60.00 at cost + 100.00 as per the table above. This, again, is a sample of a simple matrix table that does the trick for most managers.

Chuck Hartle'