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My Retail Price is Changing Around Price Increase Time
My Retail Price is Changing Around Price Increase Time

Read this article on how the retail price can change on you on a proposal

DeWayne Gibson avatar
Written by DeWayne Gibson
Updated over a week ago

We often get questions from dealers about the retail price changing around the time that a distributor or manufacturer has a price change.  

The retail price of each proposal is based on a simple formula.  All the costs of goods sold are the basis of formulating a retail price.  If your pricing/cost changes, the retail price may change.  

Here is an example of how that cost change can affect a proposal.  (This is a simple example and only reflects the process... Not ACTUAL pricing)

Let's say on the 1st of January you propose a system to your customer.  The price of the system goes up $100 on January 10.  And you are trying to get a 50% margin.  
You email your customer on January 9, the retail price of $5,000.  You increase your costs on that system by $100 on the 10th.  That means the selling price will go up to $5,200 on the 11th. 

Whatever you email the customer on the 9th will reflect a price of $5,000.  If they accept the proposal after you have increased your cost, your customer will be signing the proposal of $5,000 because that is the 'hard copy' you have emailed them.  Unless you go in and re-save the proposal and re-email it to them, they won't know of a price change unless you tell them.  They can even sign the proposal of $5,000 but the new reported price will be $5,200.  That is because truly your costs have increased and the price is based on cost.  

In summary, An emailed proposal hard-copy link will maintain the selling price. To update the selling price after cost has increased requires an execution of one of the two buttons in the edit-proposal area. "Save", "Print Proposal" or "Email Proposal". When the customer reviews the new proposal by clicking the link the NEW price will appear.

Hope this helps you understand the way a price increase can impact your customer's pricing.  

DeWayne Gibson

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