Chapter 18. Price Manager
Prism Manager enables you to adjust prices (up or down) for any or all items. This is especially useful for marking down merchandise for sales events, or to increase sales for slow-moving merchandise.
There are two types of changes:
- Immediate (changes take effect immediately)
- Planned (changes occur at a future date)
You can calculate markdown prices in a variety of ways (percentage, amount, or specific price) from the current price or cost. As part of the process, you can print markdown tags that show both the original price and the markdown price. Although the term "markdown" is used, Price Manager can adjust prices upward or downward. Each markdown is subsidiary-specific; there are no multi-subsidiary markdowns. When creating a markdown, first filter inventory (e.g. by DCS) for the items that will be included in the markdown
Basic Steps for Marking down Prices
- Go into Store Operations > Merchandise > Price Manager area.
- Click New. Enter a name for the markdown and select a Subsidiary. Click OK.
- In the Filters area, filter inventory to display the items whose prices you want to change. If you want to mark down all items, click Search without filtering. The Results pane will display the items to be included in the markdown.
- Click the Adjust button and select how to adjust prices. You can adjust prices for the items by a percentage, an amount, or adjust to a specific price.
- Review the markdown prices. If the prices are satisfactory, update the markdown.
- (Optional) Print markdown tags that show the new prices.
Price Manager Security Permissions
|Price Manager - Access||To access the Price Manager area, assign this permission to groups. If not selected, the Price Manager button in the Store Operations area is disabled|
|Price Manager - Delete Markdowns||This permission enables group members to delete an existing markdown.|
|Price Manager - Edit Markdowns||This permission enables group members to edit previously saved markdowns.|
|Price Manager - Perform Update||This permission enables group members to update markdowns. Without this permission, group members are prevented from updating markdowns.|
|Price Manager - See Subsidiaries||This permission enables group members to see markdowns for other subsidiaries. For example, if the user is assigned to a store in Subsidiary 1, then the user can see markdowns for Subsidiary 2 and 3, too.|
Price Manager Preferences
In Preferences & Settings > Merchandise > Price Manager, there is a setting to set the default update time for planned markdowns. By default, planned markdowns will update inventory prices at 12:00 pm (noon). Click the button to select a different time for the update.
Also, in Preferences & Settings > Merchandise > Adjustments, you can select whether to include items with a zero OH Qty in the adjustment. This preference becomes important if you ever need to reverse a markdown. Reversing a markdown reverses the original adjustment memos for the mardown.
- Navigate to Store Operations > Price Manager
- Click the New button.
- Enter a name for the markdown and select a Subsidiary. Click OK.
- You can filter inventory by parameters such as DCS, Vendor Code, and Description 1.
- The items that match the filter are displayed (on multiple pages, if necessary). Review the items. Verify that the list is correct. You can modify the search criteria, if necessary. If you are unsure if an item or style should be included in a markdown, you can click the Item Details button to view detailed info for the selected item.
- Click Adjust Prices.
- In the Adjust Prices dialog, you can select how to adjust prices and which price level should be affected.
- In the Adjust Price by dropdown, select an operation (e.g. Subtracting). In the "Method" dropdown, select to adjust by a specific amount, or by a percentage. In the "Amount" field, enter the percentage or specific amount of the adjustment. Click Adjust. (See the Adjust Prices section for information about the available options on this screen.)
- Markdown prices are automatically calculated for the items included in the filter. Review the changes and modify the Mkdn Price if necessary. Click Update if you are ready to update, or click Done to save the markdown prices. Updated Now: Updates the markdown immediately. Schedule Update: Updates the markdown on the specified date.
- If scheduling the update, you have the option of restoring the pre-markdown prices on a specific date. If updating now, select a Reason from the drop-down. Confirm the price level is correct. Click Continue.
- A final confirmation is displayed. Review the price level and number of items, and then click Yes to proceed.
- Adjustment memos are automatically created to record the change to inventory values.
Adjust Prices Options
Refer to the following table for information about the options on the Adjust Prices screen:
|Adjust Price From||You can adjust prices by using either Price or Cost as the starting point. By default, the new markdown prices are calculated from item Price. If you want to ensure items have a certain margin, you can adjust prices from cost.|
|Adjust Price by||This drop-down enables you to select the method to use for adjusting prices.
As is: Copy prices unchanged to another price level or round/adjust existing prices
Adding: Add a percent or amount to existing price
Subtracting: Subtract a percent or amount from the existing price
Multiply: Multiply existing price by a number
Divide: Divide existing price by a number
Amount: Enter a specific markdown amount
|Price Levels||Each price adjustment made with Price Manager affects a single price level. Select the price level that will have prices updated. Prices for other price levels will be unaffected.|
|Seasons||If using seasonal pricing, select the season to which the markdown will be applied|
|Cost Options||Price Manager is typically used to adjust prices; however, you can use it to adjust costs as well. Adding: Add a percent or amount to existing cost.
Coefficient: Enter a number that will be multiplied by the item cost.
Updating a markdown writes the MkDn Price to the Price field, updating inventory. In the initial release of the Price Manager feature, only immediate updates are allowed. In future versions, users will be able to schedule updates for a later date. Updating, reversing, or restoring a markdown will automatically generate memos.
- If updating an existing markdown, select the desired markdown from the list.
- Click the Update button.
- Click Update Now.
- In the Update Markdown dialog, select a Price Level and Reason for the Markdown. Click Continue.
- A confirmation is displayed.
Sample Adjust Prices dialog
Price Plan Authority
This release includes a new "Price Plan Authority" preference for Price Manager. This preference enables retailers to specify which installation within the Prism enterprise is the owner of a price plan. The owner of a price plan is the installation that can create adjustment memos for a markdown (and reverse those memos, if necessary). A price plan is a set of markdown of prices made with Price Manager that is scheduled to take effect on a certain date. The Price Plan Authority preference helps ensure that adjustment memos are created by the correct installation.
Price Plan Authority Terms
|Price Plan||A set of predefined price changes for a particular price level.|
|Owner||An installation responsible for creating transactional history (memos) when a scheduled Price Plan is updated. Only an owner can reverse adjustment memos generated from Price Plan updates.|
|Non-owner||An installation that can update prices, per a Price Plan, without creating transactional history. If a non-owner installation wants to reverse an adjustment memo, a request is sent to the owner installation and the owner does the reversal.|
|Ancestor||Within a Prism Enterprise structure, the POA installations "above" the referenced installation are called Ancestors.|
Reversing a Markdown
Only the workstation that applied the markdown has the adjustment references for that markdown and therefore is the only workstation that can reverse the markdown. Here's an example of how it works:
- A markdown is created at a server.
- The markdown is then replicated to six different Prism servers and to Retail Pro 9.
- The markdown is applied at a different workstation from where it was created (i.e. not your workstation).
Example Setups for Price Plan Authority
|Scheduled At||Owner is||Notes|
|RIL Prism Management||When a Price Plan is scheduled at RIL Prism Management, the price plan is replicated to Prism. RIL Prism Management installations apply the scheduled Price Plan to Inventory, creating Adjustment Memos. Prism installations apply the scheduled Price Plan to Inventory, but do not create Adjustment Memos.|
|Prism||Local||When a Price Plan is scheduled at RP Prism and the local Prism installation is the Owner, the Price Plan is replicated throughout the Prism Enterprise. The Owner installation applies the scheduled Price Plan to Inventory, creating Adjustment Memos. The Non-Owner installations apply the scheduled Price Plan to Inventory, but do not create Adjustment Memos.|
|Prism||Ancestor||When a Price Plan is scheduled at RP Prism but the owner is an Ancestor, the Price Plan is replicated throughout the Prism Enterprise. The Owner installation applies the scheduled Price Plan to Inventory, creating Adjustment Memos. The Non-Owner installations apply the scheduled Price Plan to Inventory, but do not create Adjustment Memos.|
Price Plan Reversal at Owner Installation
A Reverse is performed against the Price Plan at the Owner Installation. Adjustment Memos are created. Inventory Prices are updated and price changes are replicated.
Price Plan Reversal at Non-Owner Installation
A Reverse is performed against the Price Plan at the Non-Owner Installation. Next, a request for reversal is sent to the Owner Installation, The Owner Installation performs the reversal. Adjustment Memos are created, Inventory Prices are updated and price changes are replicated.
Manually Enter Markdown Prices
Instead of using the Adjust Prices dialog, you can manually enter the markdown prices.
- Start a new markdown and filter inventory.
- You can filter inventory by parameters such as DCS, Vendor Code, and Description 1.
- A list of items matching the filter criteria are displayed. Depending on the size of the list, it may span several pages. Review the items.
- In the MkDn Price column, enter the desired markdown price for each item. (In VAT environments, enter MkDn Price with Tax.)
- When finished, click Update to update the markdown right away, or Done to save the Markdown for later update.
If you click the Schedule Update button, you can set the date when the markdown will take effect. The time of day that the markdown prices will be applied is determined by the setting in Preferences & Settings > Price Manager. With a scheduled update, users have the option of restoring prices on a certain date. This is useful for things like weekend sales.
- Select the Markdown in the list.
- Click Schedule Update. Select a Price Level and Reason. Click the date button to select the date. By default, the date/time is set to 12:00:00 a.m. for the next day. If you want to restore the markdown, click the check box and then select the date for the restoration of the pre-markdown prices. Click Continue when you are ready to proceed.
- A confirmation explains the details of the markdown. Be sure to check the number of items affected. If you need to make changes, click No. Otherwise, click Yes. The Markdown's Status is set to "Pending."
Printing Tags for Markdown Items
After markdown down prices, the retailer will typically need to print new price tags to reflect the changed price. Print markdown tags after adjusting prices, but before updating inventory. A special Markdown tag design is available that includes both the pre-markdown and the post-markdown price. This enables customers to see a clear comparison of the prices.
- Select an item in the list.
- Click the Print Tags button.
- Select a print design and printer, or accept the defaults. You can either print a specific number of tags (Copies), or print as many tags as there are units in inventory (On Hand Quantity). If printing a specific number of tags, enter the desired number.
- Click Print.
Reverse a Markdown
You can reverse a markdown as long as the markdown does not have a Restore Date set. If the markdown has a restoration date set, you cannot reverse it. Reversing a markdown undoes the effect of the original markdown by reversing the adjustment memos that were created for the original markdown.
- Go to the list of markdowns. Select an updated markdown and click the Options button. Click Reverse.
- A confirmation is displayed. Click Yes.
- The memos associated with the markdown are reverse. The status of the markdown is set to Reversed.
Edit a Markdown
You can make changes to a markdown before the markdown is updated. You cannot edit markdowns that have been updated (or reversed). Select a markdown in the list and click the Edit button. Make any needed changes and then save.
Delete a Markdown
Select a markdown in the list and click the Delete button.
Clear a Markdown
Clearing a Markdown removes the Markdown prices from the markdown. After clearing the markdown, you can readjust prices or enter markdown prices manually.
The Markdown status can have one of the following values:
Pending: Scheduled updates will have the status set to Pending.
Updated: After the markdown has updated inventory prices, the status is set to Updated.
Reversed: Indicates the markdown has been reversed.