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New Pricing System in Place

Posted on July 19, 2002 by Jon Bach


New System

To accomodate our always increasing sales levels, we have placed a considerable amount of attention over the last weeks to building a complete ordering and inventory system from the ground up. This system went online last month, and today we are tying that system straight into our pricing database. Every time we check in and inventory a supply shipment, the pricing data is now automatically posted to our pricing database!

Pricing Impact

In reality, this is only going to mean a dollar or two in savings here and there. In some cases (take the rising costs of DDR333 at the moment), it might even mean an increase in pricing. What we are aiming for is a pricing structure that does not rely on us constantly checking our prices to make sure they are appropriate. Not only is that tedious for us, but it means that when we get too busy filling orders to do it, you end up paying prices that are one or two weeks out of date!

System Structure and Goal

Due to the fact that we now have a full inventory system in place, we log in each and every part and record the exact pricing at that time that we place our orders to our various suppliers. After all, in today's economy, there is no way to be successful if you aren't very careful to monitor your costs. This gives us the perfect opportunity to simply tie our pricing database to this system. The goal is to create a seamless system and to ensure that we are accurate in our pricing. We want to be very clear that our pricing is always a direct reflection of our costs. Why is Norton Antivirus so cheap? Because we can get it cheap! This allows absolutely no room for us to inflate our prices, and with our business philosophy that honesty and integrity are the best sales tools, that is exactly the position we want to be in!