Talk of The Villages Florida - View Single Post - Don't try to make me a fool...
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Old 07-03-2018, 08:07 AM
PennBF PennBF is offline
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How many see the sign that says "Buy one Get One Free" First: There are none "Free". Second: The Pricer will build all costs in the price. SO when you get that "Free One" it has already been priced into the product and is part of the planned revenue. Depending on the particular product will determine what is a particular assumption is used for a line item. As an example in some cases the manufacturing costs are only 10% of the product price. To be more specific some Product Revenue Assumptions are such things as Inventory Loss, Shipping Expenses, Engineering Costs Technical Support, Product Management, Planning, Scrap, Profit, etc etc. So you can see that the "Free" one is already part of your price Maybe under Inventory Loss, Surplus, etc.