Guide to Setting Up Pricing in Mimeeq's System
Introduction
Welcome to the Mimeeq pricing setup guide. This document will walk you through the various components of our powerful pricing system. While the system may initially seem complex, it's designed for ease and efficiency once you're familiar with it. For practical applications, check out our example use cases.
Contents
- Settings
- Currencies and Exchange Rates
- Market Cost Prices
- Markets
- Price Lists
- Qty Breaks
- Public Price Groups
- Untilizing Price Lists in Quotations
- Example Scenarios
Settings
Access the pricing settings through the admin panel. Navigate to 'Settings' and select 'Pricing Settings' on the left side of the screen.
Currencies and Exchange Rates
To begin, add the currencies for your sales. Here's how:
- Click 'Add Currency'.
- Enter a friendly name and select the international currency code.
- Choose if this will be your default currency.
- Set an exchange rate.
Example currencies:
- EUR (Default): Exchange Rate - 1
- USD: Exchange Rate - 1.2
- GBP: Exchange Rate - 0.9
Markets
Markets represent the regions you sell to. You can define any number of markets, which are not tied to specific countries but help define your cost prices. For this guide, we'll use two markets: EUROPE (EUR) and USA (USD). Note: We're not creating a separate market for the UK, as we'll use the EUROPE market and apply the GBP exchange rate later.
Market Cost Prices (MCP)
Here, import your Cost and Recommended Retail Price (RRP) for each product code and market.
Example:
- Market: EUROPE, Code: CHAIR-MODEL1-FABRIC, Qty: 1, Cost: €150, RRP: €250
- Market: USA, Code: CHAIR-MODEL1-FABRIC, Qty: 1, Cost: $167, RRP: $275
Price Lists
Price lists transform Market Cost Prices (MCP) into final prices.
All price lists have a General tab (settings tab) for defining the price list settings and a Companies tab where you can assign the companies that this price list is used with
The most common price list type is the 'Calculated Price List'.
Calculated Price List
In the 'General Tab' of a Calculated Price List, you can:
Field | Description |
|---|---|
Name | The designated name for organizing your price list. |
Status | Indicates whether the price list is active or inactive. |
Valid Period | The date range when this price list becomes valid and ends its validation.. |
Market | The market from which to pull the Costs and RRP. |
Currency | The currency for sales in this price list. Uses exchange rates from settings if different from the market's currency. |
Scope | Defines the extent of the price list's coverage, such as a specific product, product group etc. |
Cost Manipulation | A factor to adjust the Market Cost Price (MCP), where 1 is default. For example a 10% increase, you would enter 1.1. |
RRP Manipulation | Allows adjustment of the base RRP from the MCP like with cost prices above. for RRP it also Includes options for rounding to nearest 1, 2, 5, etc., with a default of 0.01. Rounding can be defined as simply round, where, roundup or rounddown, and we use the logic from excels round, ceiling and floor formula functions respectively. |
Sale Price | Displays the sale price as a discount from the RRP, where a discount percentage is applied post any RRP manipulation including rounding. Sale prices can then be rounded if you wish using the same logic described above for RRP's. |
Example Price Lists could be:
- "United States": Market - USA, Currency - USD.
- "Europe (Excluding UK)": Market - EUROPE, Currency - EUR.
- "United Kingdom (UK)": Market - EUROPE, Currency - GBP (with RRP rounded to the nearest 2).
Fixed Price List
Use this for controlling exact RRP and sale prices, especially for different quantity breaks than your MCP.
Field | Description |
|---|---|
Name | The designated name for organizing your price list. |
Status | Indicates whether the price list is active or inactive. |
Valid Period | The date range when this price list becomes valid and ends its validation.. |
Market | The market from which to pull the Costs and RRP. |
Currency | The currency for sales in this price list. Uses exchange rates from settings if different from the market's currency. |
Prices Tab | a place where you add or more likely import your fixed prices. |
Cost Manipulation | A factor to adjust the Market Cost Price (MCP), where 1 is default. For example a 10% increase, you would enter 1.1. |
Linked Price Lists
Connect to a fixed price list and apply additional manipulations. This is useful for adjusting prices for different client segments or currencies.
A Linked price list takes the costs from the MCP but the RRP and Sale Prices from the fixed price list that its linked from.
Field | Description |
|---|---|
Name | The designated name for organizing your price list. |
Status | Indicates whether the price list is active or inactive. |
Valid Period | The date range when this price list becomes valid and ends its validation.. |
Market | The market from which to pull the Costs and RRP. |
Currency | The currency for sales in this price list. Uses exchange rates from settings if different from the market's currency. |
Cost Manipulation | A factor to adjust the Market Cost Price (MCP), where 1 is default. For example a 10% increase, you would enter 1.1. |
RRP Manipulation | Allows adjustment of the base RRP from the MCP like with cost prices above. for RRP it also Includes options for rounding to nearest 1, 2, 5, etc., with a default of 0.01. Rounding can be defined as simply round, where, roundup or rounddown, and we use the logic from excels round, ceiling and floor formula functions respectively. |
Sale Price | Displays the sale price as a discount from the RRP, where a discount percentage is applied post any RRP manipulation including rounding. Sale prices can then be rounded if you wish using the same logic described above for RRP's. |
Quantity Breaks
Mimeeq's pricing model includes quantity breaks, which apply discounts based on the volume of the purchase. Our system uses a threshold model, meaning that the price per unit decreases as the quantity threshold increases.
Lets Take some examples
Quantity Ordered | Price per Unit (€) |
|---|---|
1 - 4 | 10 |
5 - 9 | 9 |
10+ | 8 |
How the calculation Works:
- If a customer orders any quantity between 1 and 4 units, each unit is priced at €10.
- When the quantity reaches 5 to 9 units, the price per unit drops to €9.
- For orders of 10 units or more, the unit price is further reduced to €8.
Practical Examples:
- Order of 6 Units: Since the order is above 5 units but less than 10, the price is €9 per unit. The total cost is 6 x €9 = €54.
- Order of 10 Units: This order meets the 10-unit threshold, so the price per unit is €8. The total cost is 10 x €8 = €80.
Current Limitations:
Mimeeq's system does not support graduated quantity breaks at this time. Graduated breaks offer a varying discount rate at each threshold rather than a flat rate for all units beyond a threshold. We are open to exploring this feature based on customer feedback.
Please reach out to us if you have specific needs for graduated quantity breaks or other custom pricing structures.
Item Master
Item Master is not directly to pricing but it can have a connection to pull addtional data such as delivery information or weights and dimensions, check this article Item Master for more information.
Public Price Groups
- Manage public prices in our configurator for platforms like Shopify. Create different price groups for each market (USA, UK, EU, etc.).
- To Create Public price groups head to settings
- Find pricing on the left hand menu and scroll down to Public Price groups
- Create a public price group and give it a friendly name
- Fill in the fields as per the below table and screenshot and click save
- Price list groups can be assigned to embed Templates or dynamically changed using the front end embed API
Field | Description |
|---|---|
Name | Enter the name of the price list, which will be used for identification and organization purposes. |
Slug | This will be auto generated with a random name a characters allowing it not to be easily guessed (you can rename if you like) . |
Price List Currency | Select the currency in which the prices in this list will be displayed and calculated. |
Price Type | Choose the price list field to show, cost, sale or RRP. |
Including VAT | Specify whether the prices are excluding or including VAT (Sales Tax). |
Utilizing Price Lists in Quotations
In our system, quotations are generated with a specific workflow. Each contact is associated with a company, and subsequently, a price list is linked to that company. Should there be no designated company for a contact, one can be created under a general name like "Cash Sales" or "Unaffiliated" for quoting purposes.
The quotation system employs various price fields to determine the pricing context for each product:
Price Type | Description |
|---|---|
RRP | The standard list price assigned to the product. |
Sale | The usual price that the company pays for the product. |
Cost | The base cost price for the product. |
Example Scenarios
Example 1: Multi-Region Furniture Retailer
Scenario:
A furniture retailer operates in Europe and the USA and wants to set up a simple pricing structure, using a single market setting to cater to both regions.
Solution:
- Define the
EUROPE (EUR)market in Mimeeq's system. - Set up a Calculated Price List for the EUROPE market with the default exchange rate (EUR).
- Apply the exchange rate to convert EUR prices to USD for sales in the USA, using an exchange rate of
1.2toUSD.
Calculation Example:
- The retailer sets the cost price for a chair model in the EUROPE market as €150 and RRP as €250.
- For sales in the USA, they convert these EUROPE market prices using the exchange rate of 1.2.
- The cost in the USA becomes $180 (€150 × 1.2) and the RRP becomes $300 (€250 × 1.2).
Price Calculation Breakdown for USA:
- EUROPE Market Cost:
€150 - EUROPE Market RRP:
€250 - Exchange Rate to USD:
1.2 - USA Cost (after exchange rate):
€150 × 1.2 = $180 - USA RRP (after exchange rate):
€250 × 1.2 = $300
Example 2: Seasonal Discounts for Electronics
Scenario: An electronics distributor wants to offer seasonal discounts to move inventory during the holiday season.
Solution:
- Create a new Calculated Price List named "Holiday Specials."
- Set the list to be active for the valid period from November to January.
- Apply a Sale Price discount of
20%across the board and round RRP prices to the nearest0.99to appeal to consumers' psychological pricing biases.
Calculation Example:
- An electronic item with an RRP of €499 is discounted by 20% during the holiday season.
- The Sale Price is calculated after the discount, and then it is rounded up to the nearest €0.99 for psychological pricing.
Price Calculation Breakdown for Seasonal Discount:
- Original RRP:
€499 - Discount (20%):
0.20 × €499 = €99.8 - Sale Price before Rounding:
€499 - €99.8 = €399.2 - Sale Price after Rounding:
€399.99
Example 3: B2B Discounts for Bulk Orders
Scenario: A B2B office supplies company wants to incentivize bulk purchases by offering quantity breaks.
Solution:
- Set up a new price list with Quantity Breaks in Mimeeq.
- Offer a unit price of
€10for 1-49 units,€9for 50-99 units, and€8for orders of 100 or more units. - This tiered pricing structure is communicated to their clients, encouraging larger orders for better savings.
Calculation Example:
- A company offers €10 per unit for orders of 1-49 units. For 50-99 units, the price drops to €9 per unit, and for 100+ units, it's €8 per unit.
- A client places an order for 75 units, which falls into the second quantity break. The total price is calculated using the €9 per unit price.
Price Calculation Breakdown for Bulk Order:
- Quantity Ordered:
75 units - Unit Price for 50-99 units:
€9 - Total Cost without Quantity Break:
75 × €10 = €750 - Total Cost with Quantity Break:
75 × €9 = €675 - Total Savings:
€750 - €675 = €75
FAQ
Q: What happens if we assign to a customer more than one price list
A: It will use the cheapest price list
Updated on: 03/10/2024
Thank you!