Table of Contents

Summary

Perishable items often require promotions to keep product moving

1. The supplier may pay some money to reduce the financial impact on your business of promoting their product - see Supplier Claims
   1. all unsold products - for example on short dated products, on new products being released, on special promotions
   2. Partial value of unsold or sold products
   3. Partial value of products sold associated with a particular promotion
2. Bundling products together eg: take all of them in a fixed ratio
3. Customer specific promotions
4. Customer group specific promotions
5. Branch specific promotions (run by a branch manager)
6. A Promotion may Require a prerequisite promotion (example a volume promotion may qualify a customer for additional discounts)
7. A Promotion may Limit access to all other promotions
8. May provide % or $ discounts or special prices

Promotions create separate GL lines on the Invoice - although these do not need to be printed on the invoice.

Only one promotion may be associated with any individual sales order line

The Decisions Made when setting up Promotions

See promotions after the discounts section

Discounts

Promotions are not the only way to impact on price = these simple discounting methods are available and may be simpler than Promotions.

Case Volume Discounts - for number of cases on an order per price list

Based on the number of cases on the order across all products

The sales order indicates the current discount level and the number of cases required to meet the next discount level

Right click to delete - to overwrite use the same min order and a different discount

Discount created manually on sales order

A discount may be created manually on the sales order at the line level (Requires Secure Features)

Quantity Discounts can be open or limited by Price List per Stock Article

Types of Promotions

Defined to assist with reporting and finding the correct promotions to apply when using the sales order forms.

Examples include: Volume, Price, Ranging, Key Account, Introduction etc.

Qualification Volumes

Set Minimum and/or Maximum number of units to qualify

1. Suggested: indicates the promotion will suggest these quantities
2. Overall Minimum
3. Multiplier Minimum
4. Fixed

Reward

The reward relates to the benefit provided to either

1. The products purchased
2. The bonus products qualified for

The reward can be

1. a $ or % discount related to the customers normal price 
2. or a fixed new price

The reward may be limited to a maximum bonus items per promotion

Qualifiers / Bonus Items

Qualifiers are a list of items that the customer decides to purchase.

Bonus items are offered to a customer based on the qualifiers

1. They may get a discount % or $ or promotional price (depending on reward setting)
2. They may have a nominated supplier rebate $

Examples

Purchase any 5 from this list of 10 Stock Articles and get up to 3 from a list of 5 at 50% discount

• There will be 10 Stock Articles listed as Qualifiers
• There will be 5 Stock Articles listed as Bonus
• Reward will be 
  • "% Discount on Bonuses"
  • Purchase % discount will be 50%
  • bonuses per promotion will be 3

Purchase 1 of each of these 5 items to get a 100% discounted item with a maximum of 5 free items provided

• 5 Stock items will be listed as Qualifiers
• The 100% discounted item will be listed in the Bonus section
• Reward will be
  • "% Discount on Bonuses"
  • Purchase % discount will be 100%
  • bonuses per promotion will be 1
• Qualification Maximum Units will be 25 

Promotion Limitations

By Branch and Date

Dates are optional

Branches are defined on the Host Company

By Customer Groups

All these are optional limitations

Categories are Customer Categories

Sales channels are defined on the Host Company

Can limit to only once or unlimited with additional restriction if the customer has not ordered for n months

Key accounts flag is enabled on Host Company profiling section

By Individual Customers

To limit to unique customers and their 100% owned companies

By prerequisite promotion

If this promotion is only available if the customer has already received a nominated promotion

• For example a promotion for a large discount may only be available if the customer has taken a large bundling promotion

Supplier Rebates

Any promotion may be linked to a supplier rebate.

A supplier rebate indicates that the supplier will pay a claim based on:

1. A Discount % of Buy Cost.  
   1. ie the supplier will discount the item buy price (if no purchase price exists then the average cost will be used) by the same amount as the customer discount 
   2. The same % discount that the customer receives will be applied to the purchase price.  ie if the product buy price is $50 and the sale price is $75 and the customer receives a 10% discount ($7.50) - then the supplier will accept a claim of 10% x $50 = $5
2. A % of the Discount the customer receives
   
   1. ie if the normal price is $100 and the supplier covers 50% of the discount and the product is sold at $60 then the supplier will pay 50% of the $40 discount = $20
3. $ value per discounted item

Note that supplier rebates may also be set at the qualifier or bonus Stock Article level

See Supplier Claims for details of claiming from promotion results

Advanced Features

1. Promotions can be prioritised - only one promotion can be associated with any sales order line
2. Agent % Commission can be set using promotions if required
3. Expected uplift for forecasting will apply an uplift for the related products see Sales Based Forecasting Training
4. No Further discounts will ensure no other discounts are applied to the order
5. Highlight in Raw Sales Data - see Sales Based Forecasting Training
6. GL Account - used to indicate the account the journals will be journaled to