Due to the fact many distributors deal in commodity items and the fact those items tend to fluctuate in price, the entrée system has a price drops feature.

 

When price drops are defined, the Markup Percentage that is used in the Formula, when calculating level pricing, will be dynamically adjusted based on the cost of the item.

 

 

•Markup percentages will be modified by the % defined by the qualifying price drop using the formula: Markup % - Price Drop %

 

•A negative price drop % can be used to increase the markup % of a level price.

 

•The cost that is used when qualifying a price drop is determined by the Cost Basis of the level price.

 

 

 

 

Using the table to the left, you can see how entrée would adjust the following level prices when using price drops.

 

                     Original     Adjusted      Adjusted

Cost    Markup %    Level Price    Markup %     Level Price

7.75     15           $ 8.91    15 - -2 = 17     $ 9.07

18.50     15           $21.28    15 - 0 = 15     $21.28

26.75     15           $30.76    15 - 2 = 13     $30.23