Franchise Data - Flipbook - Page 80
4. Create the Selling and Cost Prices
It is important to pick the best level to create prices but this is not an exact science and can vary from option to
option.
In the example above the option for the 1st Registration Fee has been set up at Global Level. A selling price and
a cost price of £38.00 has been entered against the option at this level. This price will be picked up for all the
Variants of Model 1 as no other price has been set against Model 1. However a new price of £25.00 has been set
against Model 2. Model 2 Variants 1 & 2 will use this value and not the value set at Global level. Model 2 Variant
3 will use the values of £20.00 for the fee as this will over-ride the values set at any other level for this variant. If
the prices were to be increased by ten percent then changes will need to be made at Global level, Model 2 level
and Model 2 Variant 3 level in this example.
Most options can usually be created at either Franchise or Model level and shared down through the levels below
it. The higher the level the option is set the easier it should be to maintain the option.
At the lower end of the structure, an option set on a particular variant cannot be shared by another variant unless
it is set up again on the other variant (or at a higher level). Setting options up at variant level should only be done
in extremely rare circumstances where the option is only available to one variant and is unlikely to be an option on
any other variant.
If there is a price change on an option it is important to find all the levels where the price has been set so that the
necessary changes can be made. A report can be created in the Report Generator module which will show
where the prices of an option have been set.
The cost and selling prices of the options should always be the prices before Vat.
Continued…….
Build Specification – Introduction to Creating Options
02.013.07.B1 – gpl 01/09/08
Page 80 of 176
