Are you currently spending a great deal of time filling in weekly lists for customers and keeping them up to date? Then create your price groups quickly. With price groups, you classify your customers according to handy groups so that you no longer have to fill in the weekly lists per individual customer.
How to create a price group
Go to Supply > Direct Sales > Price groups.
- Create a new price group by clicking ‘Add price group’. Give the price group a name.
- Under ‘pricing type’, you can choose between entering prices manually and calculating prices. A manual price group entails entering prices by hand. Calculating prices means that the prices are calculated by applying a particular formula to a basic price. Choose the option that is the most convenient for you.
- Specify whether the prices in this price group are ‘general’ (visible to everyone) or ‘customer-specific’ (only visible to certain customers).
- Specify whether delivery, transport and labelling are included in the price.Next step
- For a calculated price group: For ‘Price calculation’, you must set a number of factors, such as a discount or surcharge according to a fixed amount or percentage, settlement fees calculated on a load carrier, layer or packaging (optional), and whether prices are to be rounded off.Next step
- For a customer-specific price group: Add the correct customers. Click ‘Edit customers’ and add the correct customers by searching for them and clicking on the plus sign. As soon as you have selected the correct customers, click ‘Confirm’.
- Save your price group.
In the existing system, it is normal to specify prices per minimum order amount and delivery location. For example: delivered in Aalsmeer; €3.20 each when purchasing a trolley, but €3.40 each if the customer only orders one layer. In practice, this price differentiation is primarily intended to include transport costs in the unit price, so that the grower is not burdened with high transport costs for small orders.
Managing prices in this way is time consuming and it does not form a comprehensive solution. After all, if a customer orders five layers of different products from one grower, under this system, he will be required to pay the higher price per layer five times. In this case, the grower may have been willing to charge the trolley price, as he would still be selling a full trolley in one delivery.
The source of this problem is that customers are used to working with all-in prices, i.e. prices that include transport. Floriday’s price group function offers tools to easily calculate prices, as growers often know how their customers order.
This problem was partially solved in FloraXchange with the weekly list, as it allowed one price to be issued while the customers’ ordering habits were taken into account. Now, growers can create their own groups to calculate prices.
As such, instead of issuing a graduated price scale per product for each delivery location, they can provide a single basic price (see question 2) with a transport provision on top of it, which ensures that the transport costs are included in the price.
The basic price is the price that customers would pay if they were to pick up the goods themselves. This is also known as the auctioning on location price. Growers are no longer used to filling this in, as in FloraXchange, the weekly list prices include transport costs. However, it does have its advantages if it is used in combination with the settlement costs.
When you create a ‘calculated’ price group, you will see two fields: settlement costs, and the number of units these costs must be spread over. In short, the settlement costs show how much it costs the customers in this group to have a trolley/pallet delivered. It is therefore handy to combine customers from the same area into a group, as their transport costs are all the same.
In addition to the transport costs per trolley, you can state how the costs are to be divided. When choosing between trolley, layer and packaging, it is important to understand that your choice is best based on how the customers in the group order.
Here’s an example: Imagine that you are a grower in Westland and it costs you €20.00 to transport a trolley to Aalsmeer. In this case, it could be handy to create a price group containing customers in Aalsmeer that always order full trolleys. This will ensure that these customers receive a unit price in which the €20.00 trolley transport fee is divided across a full trolley (this amount is calculated using the product’s standard load).
The details of this example can be seen in step 2 of creating a price group. Should you be able to load 100 units of a certain product on a trolley, this means that a surcharge of €20.00/100 = €0.20 per product is added to the price.
You could also make a price group for customers in Aalsmeer who often only order a layer. For instance, if you can fit 25 plants on each layer, that means that the price per product would be increased by €0.80. By increasing the price in this way, the transport costs are covered by the unit price.
Later, there will be tools to measure customers’ ordering behavior, so that you will know whether your estimation is correct and you can fine-tune it.
A more logical situation would be that the delivery costs are separate from the agreed price and are calculated over the final order amount. Currently, this isn’t easy for customers to implement in their webshops, which is why they are still working with prices including transport costs. Eventually, when the industry is ready, we will begin using auctioning on location prices within Floriday, together with any individual delivery costs.
It is handy to arrange customers according to:
- Area (or according to the price of delivering a trolley)
- Order behavior (full trolleys, layers, individual trays/packaging)
It is also possible to calculate a standard discount or surcharge, in addition to a transport provision. As such, you can always give a discount to your best customers, who always place large orders. It is also possible to round prices off to multiples of €0.05 or €0.10.
Don’t worry! It is complicated. Should you not want to use auctioning on location prices and transport provisions, you can also create price groups manually. Doing so will allow you to group customers and save yourself time (in comparison to making weekly lists per customer in FX), while still retaining the option to deploy your own calculations.