What’s new with Rundoo?
Standard Costs!
What does this mean?
Context: Rundoo offers a variety of pricing options for Products: by discount, by margin, and by dollar. Users with the proper permissions can set a Product’s price by specifying a target margin (“by margin”).
Previously: Rundoo Product prices that were set “by margin” would use the Product’s “Default Cost” to calculate the price, and if the product was sold, the margin reported would be calculated based on the product’s Average Cost (the average of retailer’s received costs). See more here on Average Cost.
Now: Rundoo Products have a new cost parameter called Standard Cost. Standard Costs involve “set” / predetermined costs to inventory items for valuation. This option gives clients the opportunity to view profit by a different cost value, with a new cost basis “by margin” price calculation that doesn’t alter the default vendor cost (“Default cost”).
Why is this important?
With Standard Cost, retailers have a choice with how they view profit and analyze business performance, and can create more separation between their purchasing and selling departments or locations. Some retailers who opt to not receive inventory via Rundoo can feel more confident in their numbers by controlling the Standard Costs versus potentially inaccurate Average Costs.
What does this look like?
Within each Product’s Pricing page, you’ll see the Standard Cost field. By default, it matches the Default cost until edited.
What else?
Within Admin, there is also new setting under the Company page, called “Cost Management.” This lets you chose which cost is used for margin calculations. When set to “Average Cost,” margins in reports (e.g. Summary page COGs) are calculated using the average cost, and when set to “Standard Cost,” margin percentages are calculated based on the standard cost of the product at the time of sale.
What next?
Reach out to Client Success and let us know your feedback and ideas. And on a related price note, look out for steps and information in an upcoming Primer on updating prices for the Benjamin Moore price changes next month :)