Table of Contents
Overview 🧠
In the Pricing Markups section in Administration, before markups and net profit are entered, you can create pricing structures for your services based on:
branch,
division, and
service type
💡 This means services estimated in your opportunities could have different markups based on how your pricing hierarchy is set at different levels!
How It Works ⚙️
Let’s say you estimate a service on an opportunity. Your pricing will pull in the markups from the Pricing Markups section in Administration. However, with multiple pricing lines set, what pricing line is it looking?
To start:
The Branch field uses the branch of the property the opportunity is created on.
The Division field uses the division that is connected to the service, through the service type record, in the Lists section of Administration. However, it will show in the default Service Catalog search list!
The Service Type Field uses the service type connected to the service in the service catalog.
Ultimately, when a service is assigned a Service Type in the Service Catalog in Administration, it's then mapped through to a Division. When that service is used on an estimate, it has that service type and division attached to it. Then it will look to the branch of the property the opportunity is created on.
However:
🧠 More specific pricing lines will override more broad service pricing lines. This means that if multiple pricing lines match the estimated service, Aspire uses the most specific pricing line to the service being priced.
In order, Aspire will look at:
The service type connected to the service in the service catalog
The division that is connected to the service, through the service type, in the service catalog
The branch of the property the opportunity is created on
Scenarios
If you assign only a Branch on a markup line, then that markup applies to all Divisions and Service Types in that Branch.
If you assign only a Division on a markup line, then that markup applies to all Service Types attached to the Division, and for any Property in the system, regardless of Branch.
If you assign only a Service Type on a markup line, then that markup applies to any Service tied to that Service Type, regardless of Branch or Division.
Tips for Hierarchy
Every business is different, and it’s up to you to decide the structure of how you would like things priced in Aspire! Aspire’s pricing hierarchy can help you decide markups that can be specific to the service type.
💡A couple of tips for creating pricing hierarchy:
Start with getting your most basic markups in the Aspire system. Then create other lines that are exceptions to your markups that were set at a general level (Branch or Division).
Make sure to put markups percentages on all item types within the service pricing line even if you don’t normally include those in estimating. This ensures one time items, or unusual items, will not come over at cost only.
🧠 Now that we understand how pricing hierarchy works, as well as how markups are calculated, it's time to start moving those gross margins to your new markups in the next article!
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