Do your sales team have to haggle or negotiate with customers over the phone?
Do they have all the information they need concerning profitability and margin at their fingertips – or are they working in the dark?
In this video, we show you how you sales team can stay in control of the situation by:
Watch the video to see the Trinity Price Negotiation module in action. Or click below to learn more about our popular Trinity Distribution Suite for wholesale distributors using Microsoft Dynamics GP.
How to Manage Price Negotiation in Dynamics GP
Welcome to this presentation on the Price Negotiation module, from Dynavistics.
Price Negotiation is used where sales staff, rather than working with fixed price lists, must haggle with customers. To do this effectively, they need to be aware not only of costs and margin information, but previous orders for the current customer as well as the historical transactions.
The negotiation needs to be done quickly and simply from within sales transaction entry. Let's take a look.
Standard GP lets us view the price and see how it was calculated. What it doesn’t show is profitability and margin. If we call up the Price Negotiation window, the right-hand column shows us the cost price we're using, the selling price, the margin as value (in other words, selling price less cost) and the margin expressed as a percentage of cost. Over on the left-hand side we have listed the different costs on which to base the calculation. These costs are taken from the inventory item record, item credited file, or the Vendor Pricing module, from Dynavistics, as appropriate. The margin value and percentage will change depending on the chosen cost.
The negotiation screen provides with quick access to some standard GP inquiries including available to promise, purchase receipt enquiry, and outstanding purchase orders, as seen here.
It's useful to know if there’s an increasing cost price heading our way. It’s also helpful to see what the customer has previously paid for this item. There were three occasions when we reduced the price from $22 to $21. We can drill down on the detail.
Depending on how much pressure we are under, we may want to see what prices we've agreed with other customers. Here we can see that most have been charged $21. However, Adam Park on the most recent occasion was charged $20.45. If you could replicate that here, it changes our margin percentage to $7.45 and 57%, respectively. If we decide that we're okay with the margin, let’s say, at $7.20, then our new selling price is $20.20 with a percentage of 55%.
If we press the transfer button, then our new price is dropped into the order line. This is a one-off deal and does not change any existing price sheets or lists.
Price Negotiation, from Dynavistics helps salespeople:
This presentation will have several short videos on our website that cover additional Inventory, Purchasing, and Order Processing functionality that will complement your Dynamics GP system.
I hope you found this presentation interesting. If you'd like to know more, please schedule your free demonstration today. Thank you.