Equipment Pricing suggested best practice

See this post for our process (ID62) that can update parts retail price based on formulas.


Many clients want to be able to accurately track and report true cost and rep cost on equipment, here is our suggested best practice.

Some manufacturers will give you the bottom line price on the invoice, others like Canon will have rebates etc that impact this price. Additionally you will have additional discounts available such as cash with order.

We suggest that you track your Net Net Price in the Standard Cost field (1 above). This field does not get updated by eAutomate (POs). This is the bottom line price you expect to get if all rebates come in as expected, all check with order discounts etc. Suggest that your Owner and VP of Sales get together and determine what this number should be, either quarterly or when new pricing is released. 

Your Base Out Cost (2 above) is to cover the house, the consensus house margin is around 20%., so 1.2 would be the recommended markup from standard cost.

You can then set up different Out Cost Groups (3 above).

You might have one group for Canon Equipment, another for Ricoh, a 3rd for Major Accounts.


This would be to cover setting the machine up, set up supplies etc, sell at this price and there is no profit.


When you create a sales order it will pull in that Out Cost, in this example that is your Net Net Cost times 1.2 (to cover the house) then times 1.1667 (to cover set up).


But you have the option to change the Out Cost by checking the OverRide button and manually entering a number. The $2,620.80 number above is your purchase order average cost.

Provided you track your costs in eAutomate correctly we can then report gross profit by rep etc.

We also suggest you use custom properties on sales orders to track additional items that impact costs, such as Lease Buy Outs, service buy downs etc. More here.


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