Planning service pricing options for machines

Owned by John Nairn
Sept 28, 2017
2 min read

Overview

Pricing for service work on machines is controlled by a combination of four dimensions:

  • Product prices. Each part, labour time and other product may have a series of quantity break sell prices. Where no contract or preordered products apply. The default sell prices for the product applies
  • Contracts. Machines can be on a contract. The contract both informs the technician using the mobile app around how the service work is being charged as well as determines any discount, including 100% discount, that may apply to all or part of the service work for that machine. Contracts are limited by time. The special prices only apply to a machine only run to a specified end date.
  • Preordered products behave like a special type of contract that is quantity rather than time limited. A customer can pre-purchase a specific quantity of labour and be invoiced for the labour over a period of time. The customer can use the labour at any time. As a result there are many machines that can be on a empty contract. Where all product sell at the default sell price, but a few products automatically have their charge credited off the service order until the quantity specified for the preordered product is exhausted. 
  • Combinations of the above can be used.

Be aware of preordered products. You don't always need to control service prices for machines with contracts. Preordered products can provide a very effective tool as it allows the quantity used to limit the life of the contract.


Worked Examples

A machine is serviced occasionally on a casual basis. The machine is not on a contract or a preordered product. All parts and labour charges to the customer at the normal rate.

A machine needs to have all parts and labour discounted by 100%. 

  • A machine where the only thing on that machine where u don’t want to charge out service work, create a preordered product to manage and charge out.

We have machines with no contracts’

We have machine with no contracts but are on a preordered contract. Behaves like a contract with a qty

We have machine with contracts on some products and preordered products on other products and other machines on other contracts.

Eg. we may need to create a empty contract to flag to the technician which deals belong to this machine contract.