What is Never Lower and when should I use it?
Never Lower is an optional Price Book feature that tells GlobalTill to ignore any future changes that would lower the price book price. When used correctly, Never Lower can increase your profit margins by preventing LTO pricing from being passed onto the customer.
For example, you purchase a product at a one-time discount from your supplier. By default, all price books referencing the last ordered cost, supplier cost, or cost average will automatically recalculate the price book price to reflect a new lower price that includes the one-time discounted cost. If the Never Lower feature is enabled, the lower product cost is still recorded in GlobalTill, but a new price book price is not suggested.
In short, enabling the Never Lower feature acts similar to a price freeze that prevents the price book price from ever going down.
When you need to pay attention
There are two scenarios where Never Lower can cause confusion.
1. When a product is received with an incorrect cost.
The price book price is calculated against the erroneous cost and GlobalTill ignores any subsequent changes or corrections that would result in a lower price book price.
Here is an example where a data entry error upon receive recorded the cost of a product as $600.00 instead of $6.00. Even after correcting the last ordered cost and cost average to $6.00, the Never Lower Price Book (Case Discount Cost in the image below) does not update because this would cause the price to go lower.
2. When there is a current or historical error in retail price.
The price book price is calculated against the erroneous retail price and GlobalTill ignores any subsequent changes or corrections that would result in a lower price book price.
Here is an example where a data entry error set the retail price of a product to $189.90 instead of $18.99. Even after correcting the retail price to $18.99, the Never Lower Price Book (RM 10% in the image below) does not update because this would cause the price to go lower.
Price books that have Never Lower enabled may reflect data entry errors even after they been corrected. To correct historical errors in Never Lower Price Books, the prices must be updated using one of the best practices below.
How to manage never lower
If you have difficulty maintaining accurate product data, we recommend that you do not use Never Lower Price Books.
If you do use Never Lower Price Books, we recommend the following best practices:
- Periodically uncheck Never Lower on each of your price books and recalculate the price book prices.
- Use the Current (Price Book) Cost field to reset prices for any products with historical cost or retail price errors.
For more information, see the following articles: