Markup and Fast Seller Explained

Markup

The markup is the value that is multiplied by the cost price to get the tax exclusive/free price. For example, if an item cost you $100 and you wanted to make $100 you would have a mark-up of 2. So the sale price would be $200 plus tax (100 x 2 = $200 tax exclusive + eg $20 tax = $220).

You can set default markups in the system through the stock menu. When adding stock, the default markup will appear. You can then override this markup by changing the markup or typing in the sale price. Once a stock item has been entered into the system once, the markup entered will be stored and remembered for the next time you enter the exact same  item.

To enter the default markups for your store just follow the steps below:

1. In the Stock menu click on 'Markup Table'.
2. Each row shows the markup values for that 'department'. You can edit one row at a time. Click 'Edit' next to the row you want to edit.
   Note: Look at the column heading. Then look at the row. For the cost price shown in the column heading and the department on that row, enter the default markup.
3. Continue to enter the default markup in each field for the corresponding department and cost price. When finished, click 'Save'.

When entering new stock, after you enter the cost price and select a department, the default markup will be shown. The sale price will then be automatically calculated and will appear on the screen. To override the markup click in the sale price field just delete the price shown and enter in the new price. The markup will then be re-calculated based on sale price excluding tax divided by cost price.

Fast Seller

The 'fast seller' indicator is the 'number of days' that you would like this item to sell. If the item sells within the 'number of days', it is considered to be 'fast' and a good item to reorder. If an item sells within 2 x the 'number of days' it is considered 'slow'. And if an item sells more than 2 x the 'number of days' it is considered 'dead'.

To set the default Fast Seller Indexes just follow the steps below:

1. Click on 'Utilities'.
2. Click on 'Lists'.
3. Click on 'Departments' (under the stock area). For the department that you want, click 'Edit'.
4. Type the 'Fast Seller Index' number (in days) into the field.
5. Click 'Save'.
6. Repeat steps above for any other departments you want to add a fast seller default to.

To Override the default fast seller indexes just follow the steps below:

1. Edit the stock details of an existing item or enter a new stock item.
2. Click into the fast seller field.
3. Delete the value that is in the field.
4. Type in the new 'fast seller' indicator.
5. Save changes.

Note: When viewing stock items on their details page, there are two fields showing the fast seller indicator. The first field is the 'Fast Seller Indicator' field that shows what the indicator is set to (eg 100 days). The second field is next to 'days on hand'. Here you can see whether the item is 'fast', 'slow' or 'dead' e.g. Days on Hand: 5 (Fast).