Using Markdowns

It is a common practice to make point of sale ticket adjustments / markdowns to encourage customers to purchase specific products.

Markdowns may be planned or performed when needed at point of sale via a ticket. Markdowns are performed on a line item by line item basis, meaning an adjustment is entered by the operator for each SALE transaction. However, line item markdowns may be automatically applied when specific set-up conditions exist. Adjustments / Markdowns are computed on the current net price of the sales transaction. A system setting in Main-> Housekeeping-> General Setup-> System Setup -> Setup Tab - Exclude extra charges from adjustments? Extra Charges affect the sales's net price. Checked this setting will exclude any extra charges from the adjustment calculation. For example. A bride purchases a size 22 gown for $1000, the extra size charge adds another $200 for a $1200 total. Now you wish to give the bride a 10% adjustment / markdown on the dress. When extra charges are excluded the 10% discount would be $100 in this example.

Markdown scenarios

1) Promotional Pricing. Rules are set to indicate which inventory is being markdown, when the markdown is in effect and how much the markdown is. See the Promotional Pricing topic for more information.

2) Markdown Codes. Markdown codes are optional to use & may apply to any inventory item or service. They may allow any markdown amount or be limited. They may be applied during any time-frame or be limited. All this is determined by setup. See the Markdown Codes topic for more information.

3) Manually. A operator may enter a markdown on a ticket on demand. When a operator has security to perform ticket markdowns they may add a markdown anytime to a ticket. When doing so the system provides options to how the markdown may be physically entered on the ticket, for ease of use. Any markdown amount can be entered in any of the following formats:

a. A whole dollar amount, entered like 50.00, or -50.00. In this case, the retail price will be discounted by $50.
a. A percentage entered like 10%. Here, the price will be discounted by 10%
a. A percentage entered like +10%. Here, the price will be increased by 10%
a. A plus amount, like +15. The retail price will be increased by $15.
a. A divisor, like /1.07. The retail price will be discounted by the exact amount needed so that if you went back and marked the price back up by 7%, you'd get the original price. An example: $1000 discounted by /1.07 would result in a discount of -$65.42, and a markdown price of $934.57. If you then take $934.57 and mark it back up by 7%, you get $1000. A 7% discount on $1000 is -$70.00, and a markdown price of $930.00. If you mark $930.00 up by 7%, you get $995.10. This is useful if you want to give a customer credit for tax charged. In our example, if the tax rate was 7%, the discount of 1.07 will discount the item to equal the tax charged.

ProfitSystem checks to insure the code entered is valid. If not ProfitSystem will display a message indicating the code is invalid.

4) Ticket Level Markdowns. A operator can set a temporary ticket-level adjustment to a ticket. Once set up, this adjustment amount and adjustment code is automatically applied to every new sale entered on the ticket, until the ticket is closed. To set up the adjustment, click Adjust/Canc/Extra Charge on the ticket. On the adjustment dialog box, select Ticket Adjustment. It will prompt for the adjustment amount and code. Enter them, and click Save. To clear the adjustment so it won't be applied to the rest of the sales entered on this ticket, click Adjust/Canc/Extra Charge, then Ticket Adjustment (note that Ticket Adjustment is shown in boldface, indicating that a ticket-level adjustment is in effect.) Finally, click Clear. Now, no adjustment will be automatically applied to each new sale on the ticket. Once the ticket is closed, the ticket-level adjustment is cleared automatically. The adjustments added to the sales will remain, but if the ticket is re-opened, the adjustment will not be added to new sales, unless the ticket-level adjustment is re-set. However, you can create a Customer Markdown, if you want a ticket-level adjustment to apply to every sales on every ticket for a customer.

5) Customer Markdown. On the details tab of the customer you can specify an adjust amount, and an adjust code. This will become the default Ticket-Level adjustment for new tickets for the customer.
You can clear the ticket-level adjustment so it won't apply to the rest of the sales entered on this ticket, click Adjust/Canc/Extra Charge, then Ticket Adjustment (note that Ticket Adjustment is shown in boldface, indicating that a ticket-level adjustment is in effect.
Finally, click Clear. Now, no adjustment will be automatically applied to each new sale on the ticket. However the Customer Markdown stored with the customer is NOT cleared.