Settings: Product Markups

How to set product markups.

Adding default markups can help you save time and stay compliant by having consistent retail prices. 

Only users with Dealer Admin Level access and above will be able to edit their own product markups. 

1. Go to Product Settings

Using the top left toolbar from within MenuMetric, go to Settings > Products.


From the Products page, use the blue pencil button to open the product that you wish to edit.



2. Go to the Markups tab found at the top. Only users with Agent access and above will have access to this tab. 


3. Click New to start a new markup.

From there, a Retail Markup pop-up will appear. From here, you can define the conditions you would like your markup to apply to.  In the following bullet points, we will discuss the purpose of each field.






  Retail Markup Condition Fields

• The first field, "Coverage",  can be used to define what coverages you would like the markup to be applied to. 
  
  
  

• The "Term" field can be used to define exactly what coverage term you would like your markup to apply to.
  

• "Operation" is the field that defines what kind of markup you would like to have applied.
   
  • Markup Over Cost: When using the Markup Over Cost Operation, the Markup Amount field is the dollar amount over dealership cost that you would like to have displayed as the retail price.  
    
    • Example: If you have a dealership cost of $100.00, with a Cost Markup Amount of $1,400.00,  your retail price will automatically display as $1,500.00. If the dealership cost changes to $200.00, the retail price will automatically change in your MenuMetric account. The retail price will remain $1,400.oo above the cost, resulting in a retail price of $1,600.00.
    • Example 2: 

       (Dealer Cost: $500) + (Markup Over Cost: $100) = (Retail Price: $600)

      
      

      Current Dealer Cost = $500

      
      

      Markup Over Cost = $100

      New Retail Price = $500(Cost) + $100(Markup) = $600 
  • Fixed Retail Price: Using this operation will cause the retail price to always return rates with exactly what is entered in the Markup Amount. 
    • Example: If you have $1,500.00 in the Markup Amount, the rates will always return a retail price of $1,500.00, even if the retail price or dealership cost sent to us by the vendor changes. 
    • Example 2: 

       (Fixed Retail Price Markup: $600) = (Retail Price: $600)

      
      

      Current Retail Price = $500

      
      

      Fixed Retail Price Markup = $600

      
      New Retail Price = $600
  • Percentage of MSRP: Using this operation will allow you to set your product's Retail Price to a percentage of the vehicle's MSRP. The markup will be the difference between your product dealer cost and your desired retail price.  
  • Example: If you have a deal that has a $10,000 MSRP, and your markup is 10%, then your Retail Price will be $1,000. If your Dealer Cost is $200, your markup will be $800 to make up the difference between dealer cost and the dollar amount needed to make 10% of the MSRP for the product's Retail Price. 
  • Example 2:

    (MSRP: $40,000) × (Percentage of MSRP Markup%: 10%) = (Retail Price: $4,000)

    
    

    MSRP = $40,000

    Percentage of MSRP Markup = 10% of $40,000 = $4,000

    New Retail Price = $4,000
   
  • Percentage of Product Cost: The Percentage Operation changes the retail amount based on your desired % calculation instead of a set dollar amount. 
    • Example: If your vendor sends a retail price of $100.00, and you have a 100.00% markup implemented, your retail price will now display as $200.00. The added benefit of this markup is that it will proportionately adjust to any changes your vendor makes to their defaulted retail price. If your vendor adds $50.00 to their defaulted retail price, your markup will match the change. With the now $150.00 default retail price being sent to MenuMetric by the vendor, your markup will calculate 100.00% to then display $300.00 in your MenuMetric account.
    • Example 2: 

      Dealer Cost: $500) + ((Percentage of Product Cost: 150% = (Markup: $750)) = (Retail Price: $1,250)

      Current Dealer Cost = $500

      Percentage of Product Cost Markup = 150% of $500 = $750

      New Retail Price = $500(Cost) + $750(Markup) = $1,250 
  • Percentage of Vehicle Price: Using this operation will allow you to set your product's Retail Price to a percentage of the vehicle's Sale Price. The markup will be the difference between your product dealer cost and your desired retail price. 
     

• • • Example: If you have a deal that has a $10,000 Vehicle Price, and your markup is 10%, then your Retail Price will be $1,000. If your Dealer Cost is $200, your markup will be $800 to make up the difference between dealer cost and the dollar amount needed to make 10% of the unit price for the product's Retail Price. 

    • (Vehicle Sale Price: $40,000) × (Percentage of Vehicle Price Markup%: 5%) = (Retail Price: $2,000)

      Vehicle Sale Price = $40,000

      Percentage of Vehicle Price Markup = 5% of $40,000 = $2,000

      New Retail Price = $2000
  • Percentage of Vehicle Price + Product Cost: This Operation will cause the retail markup to be a percentage of the vehicle's Vehicle Sale Price. The retail price, as a result, will be the product dealer cost plus the markup of the Vehicle Sale Price percentage.
    • Example: If you set this Operation with a Markup amount of 10%, the markup on each deal will change based on the Vehicle Sale Price of the unit listed on the Sale Information page. If you have a Vehicle Sale Price of $10,000, your product markup will be $1,000. If you have a deal that has a $100,000 Vehicle Sale Price, your markup will be $10,000. Your total retail price will be the markup plus dealership cost. If you have a dealer cost of $350, your total retail price will be $10,350. 
      
      
    • Example 2: 

      ((Vehicle Sale Price: $40,000) × (Percentage of Vehicle Price Markup%: 5%)) + (Cost: $800)  = (Retail Price: $2800)

      Current Dealer Cost = $800

      Vehicle Sale Price = $40,000

      Percentage of Vehicle Price Markup = 5% of $40,000 = $2000

Once you are finished with creating your markup, you will return to your Settings Product Edit pop-up. From there, you will see the overview of all your markups for that product. 

You can easily see which Operation was used by how the markup displays.

• • • "+ Dollar Amount" is a Cost Markup.

• • • "F- Dollar Amount" is a Fixed Retail Price markup. 
    • "Percentage%rp" indicates a Percentage of MSRP markup type. "rp" stands for Retail Price. 
    • "Percentage%pc" is the Percentage of Product Cost markup type.
    • "Percentage%vp" is a Percentage of Vehicle Price markup. 
    • "Percentage%vp+" is the Percentage of Vehicle Price Plus Cost markup. 

• Vehicle Status: You can choose to have the markup apply to all units or only new vs. used. 
  

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  "Veh. Price Min" and "Veh. Price Max": These fields can be used to define a vehicle price criteria to which you would like to have the markup applied. 
  • Example: If you would like to have the markup applied to vehicles that sell between $20,000.00 and $40,000.00, you would enter $20,000.00 into the Veh. Price Min. field and $40,000.00 into the Veh. Price Max. field.
    
    
  
  

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•  "Markup Amount" is the amount that you would like to have implemented. Only whole numerical data can be entered into this field. Do not use $ or %. The function of the amount is changed by the Operation field as discussed previously in this article.