Price Methods in Norce Commerce

The different Price Methods described below can be used on a specific Price Lists, on Price Rules and can be overridden on the specific products.

It's important to note that price methods cannot be extended and are set within Norce Commerce. Additionally, the final sales price is determined based on price rounding.

Fixed Price

• Allows pricing to be set by a fixed value assigned to a product. The fixed price is assigned excluding VAT.
• This price method is usually only applied on the product level and is commonly used for primary price lists when the ERP controls pricing.

Cost Plus (based on purchase cost)

• Calculated based on the cost price with the assigned uplift% added.
• The cost price used for the calculation is taken from the resupply purchase cost (Cost purchase).

Margin (based on purchase cost)

• Calculated based on the cost price with the assigned margin%.
• The cost price used for the calculation is taken from the resupply purchase cost (Cost purchase).

Cost Plus (based on unit cost)

• The sell price is calculated based on the cost price with the assigned uplift% added.
• The cost price used for the calculation is taken from the unit cost for the remaining inventory (Cost unit).

Margin (based on unit cost)

• The sell price is calculated based on the cost price with the assigned margin%.
• The cost price used for the calculation is taken from the unit cost for the remaining inventory (Cost unit)

Use Recommended Price

• The recommended price (inherited from the primary price list) is used as the base on the calculation of the sell price, adjusted up or down with the rebate% value.
• If no Recommended price is assigned on the standard price list, the standard price will be used instead.

Use Standard Price (pct discount)

• The standard price inherited from the parent price list is used as the base for calculating the sell price. The price is then adjusted up or down with the rebate% value.

Use Standard Price (fixed discount)

• The standard price inherited from the primary price list is used as the base for calculating the sell price. The price is then adjusted up or down with the assigned fixed value.

Competitive Pricing (based on purchase cost)

• Sell price is calculated based on the Competitive Price Rules, with the assigned target and minimum margin%.
• The cost price used for the calculation is taken from the resupply purchase cost (Cost purchase).

Competitive Pricing (based on unit cost)

• Sell price is calculated based on the Competitive Price Rules with the assigned target and minimum margin%.
• The cost price used for the calculation is taken from the unit cost for the remaining inventory (Cost unit)

Structure Calculation (package price methods)

• For packages there is a special price method, "Structure Calculation", that can be used to calculate package price based on the prices of the included products.

The Structure pricing has three choices:

1. Standard Price The package price is the sum of the contained products' standard price (with optional percentage rebates).
2. Distribute Price Set a target (fixed) price for the package, and the rule distributes the price to the contained products. This is done proportionally to the rows' sale price amount (from the standard price).
3. Use item price rule Allows the user to set different price rules on every row (fixed price, cost plus, margin, use recommended price or use standard price).

Rounding Logic

In Norce Commerce, there is a client-specific framework for rounding prices. The main purpose of this framework is to automate price rounding of cosmetic prices when calculated prices are used.

Rules are set up with price ranges that may differ, and they may target pricing that includes VAT or excludes it. Rules are set up with price ranges so they might differ, and they may target pricing that includes or excludes VAT.

The rounding logic implemented may impact the final standard price, but it will protect minimum margin% limitations. In some cases, this may result in somewhat confusing results where rounding could prevent meeting a competitor's price level despite the minimum margin rules permitting it.

Other built in logic

Cost Unit and Cost Purchase

There is some automatic fallback rules between Cost unit and Cost Purchase in certain cases:

Supplement Charge

The supplement charge is added to the cost before the price methods is applied. Only one of the values is used.

If Supplement Charge in percentage is set, it is used. Otherwise, the Supplement Charge (value) is used (if it is set).

Minimum Margin

For relevant price methods the resulting prices are compared to the minimum margin sale price, calculated based on the relevant cost (unit or purchase), including the supplement charge. If price is lower than minimum margin sale price, the minimum margin sale price is used instead.