NetSuite Pricing Management Overview
NetSuite Pricing Management serves as a robust solution for controlling and adjusting prices to maximize profitability. This tool enables users to establish and maintain various pricing strategies from a single interface, allowing price management for all customers conveniently. Moreover, by leveraging NetSuite's promotion engine, retailers can enhance sales and build customer loyalty through tailored promotions.
Understanding NetSuite Pricing Management
This pricing management system from Oracle provides businesses with the ability to track, manage, and modify pricing from a unified platform, ultimately enhancing profitability. With a comprehensive approach, users can handle pricing strategies for all their clients from one location. NetSuite’s promotion engine empowers merchants to boost earnings and cultivate customer loyalty through personalized promotional campaigns.
Establishing Pricing Levels
The Multiple Pricing feature allows businesses to create various price levels that customers can choose from when placing orders. With the capability to set up to 1,000 distinct price levels, users can tailor pricing to meet the needs of different customers, such as offering retail prices to some while providing discounts to others. For instance, some items might be sold at retail prices while others can be discounted by 5%, 10%, or 15%.
To Enable Multiple Pricing
Activate the Multiple Pricing feature by going to Setup > Company > Setup Tasks > Enable Features.
Click on the Transactions subtab.
Ensure the Multiple Prices box is checked.
Click Save.
To Create a New Price Level
Navigate to Setup > Accounting > Setup Tasks > Accounting Lists > New.
Select Pricing Level to add a new pricing tier.
Provide a name for the new price level in the Price Level field on the page.
Enter a Positive/Negative % in the Markup or Discount Percentage field to adjust pricing. The price for this level is determined by adding or subtracting this percentage from the Base Price level. (Note: A rounding error of 0.01% applies to this value.)
Choose Update Existing Prices to refresh all items associated with this price level. This ensures that when a new record is created, the item price is automatically updated.
To designate this price level as your online price point, check the Online Price Level box.
To inactivate the record, select the Inactive checkbox. Inactive records won't show up in NetSuite lists or pop-ups. To view inactive records, check Show All on listing pages. Unchecking the Inactive box allows this price level to be visible.
Click Save.
Once pricing levels are established, go to Lists > Accounting > Items to enter the respective prices on item records. When creating invoices, the applicable price levels can be selected.
Configuring Item Pricing in NetSuite
To Set Up Item Pricing
While in edit mode for an item record, click on the Sales/Pricing subtab. (Note: If it’s necessary for the buyer to determine the price of an item, such as a gift voucher, use the Store subtab and select the Variable Amount box instead. The price entered on the Sales/Pricing subtab becomes the default if the Variable Amount box is also selected.)
If using quantity pricing schedules, select the desired pricing schedule under Pricing to set the price for this item. The options for Use Marginal Rates and Calculate Quantity Discounts will appear when a pricing Schedule is selected. You can create price schedules by navigating to Lists > Accounting > Quantity Pricing Schedules > New.
Use the Marginal Rate box to assign separate discounts for each pricing group. (For example, there is no discount for 100 units sold, but if more than that are sold, a 5% discount applies, affecting the last items sold.) If you wish for the discount to apply to every item, leave this box unchecked.
Specify how quantity is calculated for Pricing in the Calculate Quantity Discounts field. The available options are: - By Line Quantity: Pricing is based on each line item's quantity. - By Overall Item Quantity: The same Pricing applies to all line items for the same item. - By Overall Parent Quantity: When a transaction includes both parent and child items, the pricing applies to all items associated with the same parent. This method can also apply to matrix items. - By Overall Schedule Quantity: Transactions using the identical pricing schedule are collectively priced.
In the Pricing Group field, select the relevant pricing group for this item. Pricing groups enable customer-specific price tiers for collections of items.
Click Save.
Managing Item Pricing in NetSuite
Multiple Pricing
Quantity Pricing
Quantity Pricing Schedules
Pricing Groups
1. Multiple Pricing
Custom price levels can be established for each item and service in NetSuite, including a separate sales price for online transactions. This allows differentiation between wholesale and retail pricing, with the option to create up to 1,000 distinct price levels.
With Multiple Pricing Activated:
Automatically filled-in custom prices will appear for transactions.
Higher margin pricing can be designated for customers making cash purchases.
Discounts can be given to high-volume customers as a reward.
Customers see their tailored price upon logging into your website. If there isn’t a specified custom price, the base price applies to the transaction.
2. Quantity Pricing
This feature applies differing sale prices based on the quantities sold automatically.
To Enable Quantity Pricing:
Go to Setup > Company > Enable Features.
Check the Quantity Pricing box under the Transactions subtab.
Click Save.
To Set Quantity Pricing Preferences:
Navigate to Setup > Accounting > Preferences > Accounting Preferences.
Click the Items/Transactions subtab.
Input a number to cap the quantity-based pricing levels assigned to each item in the Maximum # of Quantity-based Pricing Levels field. These levels will appear as columns on the item record’s Sales/Pricing subtab.
To enter discounts for each price level, check the Allow Quantity Discounts by Price Level box on the Schedules page.
Click Save. You can now input Pricing on the Sales/Pricing subtab of the item records.
3. Quantity Pricing Schedules
Templates for setting prices for buying and selling can be created using quantity pricing schedules. When applied to items, all price levels will dynamically adjust according to the schedule.
To Associate a Pricing Schedule with a Vendor:
Go to Lists > Relationships > Vendors.
Edit the vendor record you wish to associate with a pricing schedule.
Click the Financial subtab.
Access the Pricing Schedules subtab, then click New Pricing Schedule. Name your price schedule and set a Base Discount in the designated field.
Click Save. Each quantity pricing schedule may be linked to a single vendor but can apply to multiple items.
4. Pricing Groups
Using pricing groups, you can designate customer-specific price levels for collections of items, such as having a pricing group specifically for laptops.
To Create a Pricing Group:
Go to Setup > Accounting > Setup Tasks > Accounting Lists > New.
In the Add to Accounting Lists menu, click Pricing Group.
Assign a name to the price group.
Click Save. (Note: The pricing level of a pricing group takes precedence over that of the customer, but not over item pricing.)
5. Promotion Codes
With the promotional codes feature activated, item-specific coupon codes can be provided.
To Create an Item Coupon:
Enable the Promotion Codes feature.
Navigate to Lists > Accounting > Item > New > Discount. Set the discount amount in the Rate field.
To create a promotion code, go to Lists > Marketing > Promotion Codes > New.
Enter the coupon code in the Promotion Code field and select the discount item in the Discount field.
Choose First Sale Only in the Apply Discount option to limit coupon usage. Select All Sales for multiple uses.
Set the coupon validity period by entering the start and end dates in their respective fields.
Check the Available to All Customers box to make the code accessible to everyone, or uncheck it to restrict usage.
Assign the items applicable for this discount on the Items subtab, and check the Exclude Items box if necessary.
Click Save. The coupon can now be disseminated to customers as a discount code for selected products.
Conclusion
NetSuite has consistently led the ERP industry with its customizable and scalable pricing solutions. NetSuite Pricing Management empowers businesses to swiftly adapt to market shifts and customer needs through flexible pricing strategies. The capacity to automate traditionally manual tasks alongside a unified backend for critical business functionalities showcases the comprehensive capabilities of NetSuite ERP.
