RME: Ingredient Price Bands

Overview

Price band functionality allows the maintaining of a single product, with a single product code, from a single supplier, but with varying prices applied. This could be for regional pricing differences or contractual reasons, for example.

In Recipe & Menu Engineering (RME), by default, a single price band exists. However, additional price bands can be configured where required. This article will cover the configuration and use of additional price bands.

Price bands are applied to specific groups (and therefore user groups) showing the impact of the different price bands on ingredients, recipes and menus when in the relevant user group. This also allows control over who has access or who is restricted from seeing specific pricing.

Where a customer also uses Fourth's Inventory product, these price bands can be applied to specific site and supplier combinations to control the prices for ordering and stock purposes.

Further details for Inventory customers can be found here: Inventory: Ingredient Price Bands

Configuration

Creation of Price Bands

Price bands are managed from the Admin area.

Every price band must have a corresponding group to enable cost calculation. Association of that group to a user group is optional.

The user group permission Allow Price Band Management is required to manage price bands.

Fig.1 - Price band management permission

For further information on User Groups see How to Amend User Groups in RME.

• Navigate to Admin > Price Bands (any existing price bands are displayed in the list on the left)
• Select New
• Give the price band a Name and an optional Description
• Select a Calculation Method:
  • Mark-up %
    • This applies a flat % increase to all ingredients
    • Negative % values are not permitted
    • Where a mark-up % increase is not suitable and specific prices are required, apply a % of 0. A specific override price can then be assigned to each ingredient

Details on managing override pricing are covered further in this article.

• • Gross Margin %
    • This will apply the selected margin to the base cost.
    • For example 75% Gross Margin is selected. A price band cost will be calculated to give 75% margin on top of the base.
      • Base Cost: £92.50
      • Calculated Cost: £370
      • Margin of 75%
    • Negative % values are not permitted
    • Where a gross margin % increase is not suitable and specific prices are required, apply a % of 0. A specific override price can then be assigned to each ingredient
• Enter the required %
• Select Save

Fig.2 - Price band creation

Applying Price Bands to Groups

Price bands can be assigned to either existing or new groups.

• Navigate to Admin > Groups
• Select an existing Group or create a new one
• During the Ingredient set-linking process (Sets > Ingredient Sets), choose the required price band
• Select if the Ingredient is Set as default or not
• Select Save

For further information on Groups see Creating Groups in RME.

Fig.3 - Price band group linking

Applying Price Bands to User Groups

The group containing a price band must be assigned to a User Group to enable price band data to be seen (although calculations will continue to be completed in the background regardless of a User Group being linked for visibility).

• Navigate to Admin > User Groups
• Assign the relevant Group to the User Group
• Select Save

For further information on User Groups see How to Amend User Groups in RME

Fig.4 - Price band group to User Group linking

• Remember to add this user group to any required users from Admin > Users

If a user group has permission to Edit Pricing Information the user will see both Base Ingredient Cost and Calculated Cost

Calculated cost refers to either the Calculated % or override value 

If a user group does not have this permission, then only the calculated cost is seen.

Fig.5 - Edit Pricing Information permission

Viewing Price Band Calculated Pricing in RME

To view price band pricing in RME, ensure you are logged in to a User Group associated with a group with a price band assigned.

Ingredients: Ingredient pricing will show either the base and calculated cost, or just the calculated cost depending on the 'Edit Pricing Information' permission mentioned above

Recipes: All recipe costing will be based on the calculated price band price

Menu: All recipe costing within menus will be based on the calculated price band price

How to Update Price Band Pricing

Mark-up: % applied

Where a % has been applied, updates will happen automatically where the base price is updated - applying the nominated % logic without any intervention

Base prices can be updated one by one against the ingredient (if the user has permissions), or can be updated in bulk as described in the Bulk Cost Price Updates article.

Gross Margin: % applied

Where a % has been applied, updates will happen automatically where the base price is updated - applying the nominated % logic without any intervention

Base prices can be updated one by one against the ingredient (if the user has permissions), or can be updated in bulk as described in the Bulk Cost Price Updates article.

Mark-up or Gross Margin: No % applied but specific cost to be used

Where no % has been applied, then an 'override' price is required.

The override price can be applied in three ways:

1. Directly against the price band in RME

1. • Navigate to Admin > Price Bands
   • Select the price band
   • Select Edit > Products
   • Apply the Override Price as required
   • Select Save

Fig.6 - Override price updated directly against price band

2. Via the Ingredient Price Band Override Template

• • Navigate to Reports
  • Select the Ingredient Price Band Override Template
  • Apply any parameters as required and Create Report in Excel
  • Once the report is downloaded and opened, update:
    • Column I: With the price band name (exactly as it is in Admin > Price Bands)
    • Column J: With the override price
  • Save the report
  • Navigate to Admin > Ingredient Import/Update
  • Select Import File
  • Step 1: Select the file
  • Step 2: No action required
  • Select Next
  • Select Finish

The file will be processed and the results will be displayed on the Import/Update screen. If any issues are encountered, an exception file will be generated for review.

Fig.7 - Override Price updated via Template

Fig.8 - Import completed override price template

3. Via the Ingredient Price Band API

Price band override prices can also be updated via the Import API.

The Import API is typically utilised by customers who require RME to be populated with data from external systems or third parties.

If not already utilising the Import API, please speak to your Fourth representative for further information.

For customers utilising the Import API, the IngredientPriceBand endpoint will be used for the updates. Technical information can be found on our Developer Page

Override pricing can still be applied where a % markup or gross margin has been calculated and will be used in place of the calculated %.