User Guide Instructions Pages 60-73

Manual Version125
You are able to globally enable or disable smart pricing on all parts that would be affected by the selected
matrix including parts marked as stock, non-stock, or consigned by selecting the Disable Smart Pricing for
Inventory parts under this matrix or the Enable Smart Pricing for Inventory parts under this matrix button.
Linear by Supplier
430B
Define the cost ranges. If certain suppliers will have different pricing, decide who those suppliers are, and
separate matrixes can be set up. Select the New button to add a new price matrix.
If the shop has been using R.O. Writer™ and has historical information, it is advisable to run the sales
history and see what the historical margins have been.
Select the drop down window to edit other matrixes. Select the New button to create a new matrix for
alternate suppliers. It is recommended when naming new matrixes to use a descriptive enough name so
you can identify the correct matrix when editing (Example: CARQUEST Inventory or CARQUEST
Outside Purchase). Select the Save Changes button to save the matrix.
The first item to configure is the cost ranges. Enter the dollar values to define the pricing matrix. With
Linear Pricing, the levels are infinite. It is a gradual stair step effect where halfway is 50%. It's usually a
progression down but it doesn't have to be.
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R.O. Writer
The next step of establishing the pricing matrix is to set the margins for the pricing levels. The margins
screen displays the pricing levels established in step one. If the sales analysis was run for historical
information, the percent of total parts sales for each pricing level will appear below the pricing levels. To
complete the pricing matrix, enter the cost plus multiplier, the margin, or the markup that is desired for
each pricing level. Entering one of these values will cause the others to be calculated. Once the
information has been entered, select Save Changes to save and remain in this screen or select Save to
save and exit.
As part of the linear pricing, there are minimum prices that can be set for each cost range. If the
calculated price is less than the minimum price, then that price will be used.
Setting the Global Parts Rounding Option applies to all matrixes.
No Rounding
Round up to: Select the drop down window to select the number you wish to round prices up to.
61
Manual Version125
The Default CPM for Manual Price Calc is the multiplier that is used when using the Price Calc button
from the edit part window.
As part of the linear pricing, there is a minimum margin that must be set. This should be set several
percent lower than the aggregate profit margin. If the overall profit margin for a repair order falls below
this amount, R.O. Writer™ will warn the user, and ask if the pricing should be modified. As a starting
guideline, set the minimum about 1.5 to 2.0 percentage points lower than what is set for the aggregate
profit margin.
The minimum profit margin is a global setting and applies to all matrixes.
The Save & Update Inventory Pricing button will update the retail price on every part that would be
affected by the selected matrix including parts marked as stock, non-stock, or consigned.
Parts with the No Smart Pricing box checked in inventory will not be updated using the Save & Update
Inventory Pricing button.
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R.O. Writer
NOTE: When the No Smart Pricing box is checked, the price can only be updated using the calc
prices button or manually entering a price. When this box is checked, the Smart Pricing option is grayed
out.
When the Calc Prices button is selected, the prices will be calculated using either the default CPM matrix
or if a department is selected, the department CPM matrix.
63
Manual Version125
You are able to globally enable or disable smart pricing on all parts that would be affected by the selected
matrix including parts marked as stock, non-stock, or consigned by selecting the Disable Smart Pricing for
Inventory parts under this matrix or the Enable Smart Pricing for Inventory parts under this matrix button.
When in doubt you are able to enter a sample cost and select the Calculate button to see what price
would be calculated using the currently saved matrix.
You will see a window that shows you step by step how the price was calculated.
If historical information is available, the next step would be to review the parts sales history to see what
the historical margins have been for the newly established pricing range. This information could prove to
be useful in establishing the pricing matrix margins. If historical information is not available, the user
would proceed to the next step of establishing margins for each of the pricing levels.
Careful attention should be paid to the Aggregate Profit Margin. This percentage provides powerful
information regarding total parts sales profitability.
64
R.O. Writer
If needed, set the date range. By default, R.O. Writer™ will select the last 12 rolling months
Based on the cost ranges you set and your included suppliers, R.O. Writer™ will run an analysis of your
actual purchases during the date range.
The last step of establishing a price matrix is to select the suppliers that are to be included in the pricing
matrix. Individual suppliers may have their own pricing matrix.
65
Manual Version125
Suppliers on the Included list will
be assigned to this matrix.
Suppliers on the Excluded list will be
removed from this matrix.
Linear by Department
431B
Define the cost ranges. If certain departments will have different pricing, decide what those departments
will be, and separate matrixes can be set up. Select the New button to add a new price matrix.
If the shop has been using R.O. Writer™ and has historical information, it is advisable to run the sales
history and see what the historical margins have been.
Select the drop down window to edit other matrixes. Select the New button to create a new matrix for
alternate parts departments. It is recommended when naming new matrixes to use a descriptive enough
name so you can identify the correct matrix when editing (Example: Brake Inventory or Brake Outside
Purchase). Select the Save Changes button to save the matrix.
The first item to configure is the cost ranges. Enter the dollar values to define the pricing matrix. With
Linear Pricing, the levels are infinite. It is a gradual stair step effect where halfway is 50%. It's usually a
progression down but it doesn't have to be.
66
R.O. Writer
The next step of establishing the pricing matrix is to set the margins for the pricing levels. The margins
screen displays the pricing levels established in step one. If the sales analysis was run for historical
information, the percent of total parts sales for each pricing level will appear below the pricing levels. To
complete the pricing matrix, enter the cost plus multiplier, the margin, or the markup that is desired for
each pricing level. Entering one of these values will cause the others to be calculated. Once the
information has been entered, select Save Changes to save and remain in this screen or select Save to
save and exit.
As part of the linear pricing, there is a minimum price that can be set for each cost range. If the calculated
price is less than the minimum price, then that price will be used.
Setting the Global Parts Rounding Option applies to all matrixes.
No Rounding
67
Manual Version125
Round up to: Select the drop down window to select the number you wish to round prices up to.
The Default CPM for Manual Price Calc is the multiplier that is used when using the Price Calc button
from the edit part window.
As part of the linear pricing, there is a minimum margin that must be set. This should be set several
percent lower than the aggregate profit margin. If the overall profit margin for a repair order falls below
this amount, R.O. Writer™ will warn the user, and ask if the pricing should be modified. As a starting
guideline, set the minimum about 1.5 to 2.0 percentage points lower than what is set for the aggregate
profit margin.
The minimum profit margin is a global setting and applies to all matrixes.
The Save & Update Inventory Pricing button will update the retail price on every part that would be
affected by the selected matrix including parts marked as stock, non-stock, or consigned.
Parts with the No Smart Pricing box checked in inventory will not be updated using the Save & Update
Inventory Pricing button.
68
R.O. Writer
NOTE: When the No Smart Pricing box is checked, the price can only be updated using the calc
prices button or manually entering a price. When this box is checked, the Smart Pricing option is grayed
out.
When the Calc Prices button is selected, the prices will be calculated using either the default CPM matrix
or if a department is selected, the department CPM matrix.
69
Manual Version125
You are able to globally enable or disable smart pricing on all parts that would be affected by the selected
matrix including parts marked as stock, non-stock, or consigned by selecting the Disable Smart Pricing for
Inventory parts under this matrix or the Enable Smart Pricing for Inventory parts under this matrix button.
When in doubt you are able to enter a sample cost and select the Calculate button to see what price
would be calculated using the currently saved matrix.
You will see a window that shows you step by step how the price was calculated.
If historical information is available, the next step would be to review the parts sales history to see what
the historical margins have been for the newly established pricing range. This information could prove to
be useful in establishing the pricing matrix margins. If historical information is not available, the user
would proceed to the next step of establishing margins for each of the pricing levels.
Careful attention should be paid to the Aggregate Profit Margin. This percentage provides powerful
information regarding total parts sales profitability.
70
R.O. Writer
If needed, set the date range. By default, R.O. Writer™ will select the last 12 rolling months
Based on the cost ranges you set and your included suppliers, R.O. Writer™ will run an analysis of your
actual purchases during the date range.
The last step of establishing a price matrix is to select the suppliers that are to be included in the pricing
matrix. Individual suppliers may have their own pricing matrix.
71
Manual Version125
Departments on the Included list will
be assigned to this matrix.
Departments on the Excluded list will be
removed from this matrix.
Default Outside Purchase Pricing
32B
Pricing options for outside purchases include the same options as options for Inventory Pricing with two
additional pricing methods that can be set up by associated labor. Pricing options include:
Cost Plus Multiplier (CPM)
Matrix by Supplier
Matrix by Department
Linear by Supplier
Linear by Department
Cost Plus Multiplier (CPM)
432B
This matrix is accessed when the Use Cost Plus Multiplier (CPM) option is selected for either Parts in
Inventory or Outside Purchase. This matrix can also be accessed regardless of what option is set in Set
Pricing Method from Configuration>Parts>Price Levels>Default Pricing.
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R.O. Writer
A change to any one of the fields (Multiplier, % Profit, or % Markup) will cause a corresponding change in
the other two fields. By adjusting these fields, the relation between profit margin and markup can been
seen. A different margin can be set for each of the five pricing levels. The price will be calculated as
follows: Average cost * Multiplier.
Also as part of the default pricing, there is a minimum margin that must be set. This should be set several
percent lower than the retail margin. If the overall profit margin for a part falls below this amount, R.O.
Writer™ will warn the user, and ask if the pricing should be modified. As a starting guideline, set the
minimum about 1.5 to 2.0 percentage points lower than what is set for the retail margin.
The minimum profit margin is a global setting and applies to all matrixes.
NOTE: This is the default CPM matrix. When parts departments are selected, the matrix for that
department will be used. To access the matrixes for each department, select Configuration>Parts>
Parts Departments.
Matrix by Supplier
43B
Define the cost ranges. If certain suppliers will have different pricing, decide who those suppliers are, and
separate matrixes can be set up. Select the New button to add a new price matrix.
If the shop has been using R.O. Writer™ and has historical information, it is advisable to run the sales
history and see what the historical margins have been.
Select the drop down window to edit other matrixes. Select the New button to create a new matrix for
alternate suppliers. It is recommended when naming new matrixes to use a descriptive enough name so
you can identify the correct matrix when editing (Example: CARQUEST Inventory or CARQUEST
Outside Purchase). Select the Save Changes button to save the matrix.
The first item to configure is the cost ranges. Enter the dollar values to define the pricing matrix.
73