List Price Management

Calculating the list price of auto parts based on cost and transport involves considering various factors to ensure profitability while remaining competitive in the market. Here's a step-by-step approach to calculating the list price:

• Determine Total Cost: Begin by calculating the total cost of acquiring the auto parts.

• Include Transport Costs: Factor in the transportation costs incurred in bringing the parts to your facility or warehouse. The same product will have a different Transport Cost (and therefore different List Price) depending on the plant where it will be shipped to.

• Markup Percentage: Determine the desired markup percentage that you wish to apply to the total cost of the auto parts. This markup percentage accounts for profit margin and covers additional expenses such as sales and marketing, customer support, and returns.

• Calculate List Price: Use the following formula to calculate the list price:

• Review and Adjust: Regularly review and adjust your pricing strategy based on changes in costs, transport expenses, market dynamics, and customer feedback. Continuously monitoring and optimizing your pricing strategy is essential for long-term success in the automotive parts industry. Manual adjustments should be possible to the List Price.

• Workflow Approval: A workflow approval should be in place in some cases, depending on the price change.