The pricing matrix allows organizations to define standardized rules that automatically determine the sell price of parts based on their cost and assigned category. This system is primarily configured during account setup by administrative users, but shops may occasionally update their pricing structures as market conditions or business needs change.
While pricing rules are not adjusted frequently, the price matrix configuration plays a critical role in ensuring accurate, consistent, and competitive pricing during day-to-day operations. Once established, the price matrix enables staff to focus solely on selecting the correct part and category—pricing is applied automatically based on these predefined rules.
What Is a Price Matrix?
A price matrix is a table of pricing rules that determine how the sell price of a part is calculated from its cost. Each row in the matrix defines:
A cost range
A markup value
A margin value
When a part’s cost falls within a specific range, the system applies the corresponding markup or margin to calculate the part’s sell price.
Key Characteristics
Every organization is automatically given a default price matrix when the account is created.
The default matrix can be edited as needed.
The default matrix is used for all uncategorized parts.
Additional price matrices can be created and assigned to specific categories.
Price Matrix Structure
Each pricing rule inside a matrix includes:
Cost Range
Defines the minimum and maximum cost values for which the rule applies.
Example: $10.01–$100.00
Markup vs. Margin
Both markup and margin fields are available:
Markup: Increase from cost to sell price as a percentage of cost.
Margin: Profit percentage based on sell price.
Users can enter either value; the system automatically calculates the other.
For example:
Entering a 25% margin will auto-calculate the corresponding markup.
Entering a 20% markup will auto-calculate the corresponding margin.
Rule Application
When determining a sell price:
The system checks the part’s category.
It identifies the price matrix assigned to that category.
It compares the part cost to the ranges in that matrix.
It applies the matching rule to calculate the sell price.
Categories and Their Relationship to Price Matrices
Categories determine which matrix is used for pricing. A price matrix can be assigned to one or more categories, but:
Important Rules
A category can only be assigned to one price matrix at a time.
If a part has no assigned category, it automatically uses the default price matrix.
Common categories might include items like Engine, Brakes, Lighting, etc., allowing different pricing strategies depending on part type.
This enables organizations to align pricing with industry standards, which often allow higher or lower markups depending on part category.
Managing Price Matrices
Creating New Matrices
Users can create additional matrices when:
Different part types require unique pricing strategies.
New business rules or market conditions necessitate customized markup structures.
Duplicating Matrices
Price matrices often contain many rows. When only minor changes are needed:
Users can duplicate an existing matrix.
The system creates a copy with identical rules.
Users can rename and modify the copy as required.
Editing Matrices
Users can modify:
Cost range values
Markup
Margin
Assigned categories
The default matrix cannot be deleted, but all other matrices can.
Deleting Matrices
When a matrix is deleted:
Any categories assigned to it are automatically unassigned.
The affected categories revert to using the default matrix.
How Pricing Works on Parts
Pricing rules behave slightly differently depending on the type of part: special order parts vs. inventory parts.
Special Order Parts
When a special order part is added to a work order:
The user enters the part cost.
Upon exiting the field, the system:
Retrieves the part’s category
Determines the correct price matrix
Applies the pricing rule to calculate the sell price
If the category changes, the sell price recalculates automatically based on the new matrix.
Manual Overrides
Users can manually override the calculated sell price for that specific part instance.
Notes:
Changing the category again will reset the price based on the matrix.
Overrides apply only to that part on that work order, not the catalog or inventory record.
Inventory Parts
Inventory parts follow the same pricing logic but have additional capabilities.
When an Inventory part is received:
The user enters the part cost.
Upon exiting the field, the system:
Update the average cost based on first in, first out logic.
Retrieves the part’s category
Determines the correct price matrix
Applies the pricing rule to calculate the sell price
If the category changes, the sell price recalculates automatically based on the new matrix.
Inventory cost can not be edited within the work order part request modal but can be within the inventory itself.
Category Assignment
An inventory part must be categorized to use a specific matrix.
Currently, categories must be updated in the Catalog module (an enhancement will allow editing from the Inventory screen).
Fixed Price Rules
Inventory parts can have a fixed price overriding all standard matrix logic.
How it works:
Clicking the price field allows the user to enter a specific sell price (e.g., $14.99).
Once saved:
The price field displays in green.
And will display a “Fixed Sell Price” label for clarity.
A fixed price overrides all category or matrix rules.
Removing Fixed Price Rules
To revert to matrix-based pricing:
Click the price field.
Delete the fixed price.
Save the change.
The system returns to using category-based pricing or the default matrix.
Pricing Priority Hierarchy
When determining the final sell price, the system follows a strict priority order:
Fixed Price Rule (Highest Priority)
If a fixed price exists on an inventory part, it is always used.
Matrix rules are completely ignored.
Category-Based Price Matrix
If no fixed price exists, the matrix assigned to the part’s category is used.
Default Price Matrix
Used only when:
The part has no category, or
Its category has no assigned matrix.
FAQ: Price Matrices & Pricing Rules
1. What is a price matrix?
A price matrix is a table of pricing rules used to calculate the sell price of a part based on its cost. Each rule covers a cost range and specifies the markup or margin that should be applied.
2. Why does every organization have a default price matrix?
A default matrix is automatically created during account setup. It is used for all uncategorized parts and acts as a fallback when no category-specific matrix is assigned.
3. Can the default price matrix be edited or deleted?
Yes, the default matrix can be edited, but cannot be deleted. All other matrices can be freely edited, duplicated, or deleted.
4. How is a price matrix connected to part categories?
Each category can be assigned to one price matrix. When a category is applied to a part, the system uses the associated matrix to calculate pricing.
5. What happens if a part has no category?
If no category is assigned, the system treats the part as uncategorized and uses the default price matrix.
6. What is the difference between markup and margin?
Markup is the percentage added to cost.
Margin is the percentage of profit built into the final sell price.
Users can enter either one; the system automatically calculates the other.
7. What happens if a part’s cost falls within a specific range?
The system selects the pricing rule whose cost range includes the part’s cost and applies that rule’s markup/margin to calculate the sell price.
8. Can I assign a category to multiple price matrices?
No. A category can only belong to one price matrix at a time.
9. What happens when I delete a price matrix?
All categories assigned to that matrix are automatically unassigned, and they revert to using the default price matrix.
10. Can price matrices be duplicated?
Yes. Duplicating a matrix copies all its rules and allows you to:
Rename it
Make modifications
Reassign categories
This is useful for making small variations of an existing matrix.
11. How is pricing applied to special order parts?
When a user enters the cost of a special order part:
The system checks the part’s category.
It selects the correct price matrix.
It applies the matching rule to calculate the sell price.
Changing the category recalculates the sell price.
12. Can I manually override the calculated sell price on a special order part?
Yes. Users can override the sell price directly.
The override affects only that single part instance on the work order.
13. How do price matrices work with inventory parts?
Inventory parts use the same category-based pricing rules. The assigned category determines which matrix applies. The cost of the inventory part is driven by the average cost of receiving the parts using first in, first out logic.
14. Can I change the category of an inventory part?
Yes, but currently it must be done in the Catalog module (not directly in the Inventory screen). An enhancement will allow changing it from Inventory in the future.
15. What is a fixed price rule?
A fixed price rule is a manual sell price override on an inventory part.
If a fixed price exists, it replaces all price matrix logic.
16. How do I know if a part has a fixed price?
A fixed price shows as a green sell price field with a “Fixed Sell Price” label for clarity.
17. How do I remove a fixed price rule?
Click the price field.
Delete the fixed price.
Save the part.
The system then returns to matrix-based pricing.
18. What is the order of priority for pricing rules?
The system always follows this hierarchy:
Fixed Price Rule (highest priority)
Category Price Matrix
Default Matrix (for uncategorized parts)
19. Does changing the category always change the sell price?
Yes—unless a fixed price rule exists on an inventory part.
For special order parts, changing the category always recalculates the sell price.
20. Does a price matrix change automatically update historical sell prices?
No. Changes only affect future pricing calculations, not past transactions.
21. Can I set up a price matrix for a customer?
Yes, you would first create a category for them and then tie a new matrix to that category and edit the pricing as needed. Then when creating a work order you would assign all of the parts to that category. In the future you will be able to assign a default category by customer as well.