average cost calculation in price rule

[Hansen]

I have a product whose list price and default price are both set to 5. These
are the only explicit prices set for this product. There is also no cost
component set for this product. This product has only one inventory item
whose cost is 3. I set up a price rule for this product to add 30% of
average cost to the list price. When I try to add one of this product in the
cart, the price is shown 6.5, instead of 5.9. The reason is that the price
rule use the list price as the average cost. Is there any way (out of box)
the price rule will use inventory cost?

[Hansen]

Or is that right, that the "average cost" from price rule action means the
"average cost" price of the product which is set explicitly from the prices
tab of a product?

Secondly, does it sound reasonable solution that we use a nightly job to
update the "average cost" price of the product using the inventory costs of
all the inventory items for this product?

What we really want is a price structure based on the average cost of based
on inventory items for a product and a profit margin based on related
categories of this product.

On Thu, Feb 19, 2009 at 10:27 AM, Hansen Wang <[hidden email]> wrote:

> I have a product whose list price and default price are both set to 5.
> These are the only explicit prices set for this product. There is also no
> cost component set for this product. This product has only one inventory
> item whose cost is 3. I set up a price rule for this product to add 30% of
> average cost to the list price. When I try to add one of this product in the
> cart, the price is shown 6.5, instead of 5.9. The reason is that the price
> rule use the list price as the average cost. Is there any way (out of box)
> the price rule will use inventory cost?
>

[Vince Clark]

I do not understand this part:
"profit margin based on related categories of this product...."

----- Original Message -----
From: "Hansen Wang" <[hidden email]>
To: [hidden email]
Sent: Thursday, February 19, 2009 1:47:15 PM (GMT-0600) America/Chicago
Subject: Re: average cost calculation in price rule

Or is that right, that the "average cost" from price rule action means the
"average cost" price of the product which is set explicitly from the prices
tab of a product?

Secondly, does it sound reasonable solution that we use a nightly job to
update the "average cost" price of the product using the inventory costs of
all the inventory items for this product?

What we really want is a price structure based on the average cost of based
on inventory items for a product and a profit margin based on related
categories of this product.

On Thu, Feb 19, 2009 at 10:27 AM, Hansen Wang <[hidden email]> wrote:

> I have a product whose list price and default price are both set to 5.
> These are the only explicit prices set for this product. There is also no
> cost component set for this product. This product has only one inventory
> item whose cost is 3. I set up a price rule for this product to add 30% of
> average cost to the list price. When I try to add one of this product in the
> cart, the price is shown 6.5, instead of 5.9. The reason is that the price
> rule use the list price as the average cost. Is there any way (out of box)
> the price rule will use inventory cost?
>

[Hansen]

It just meant the profit margin for the category where the specific product
belongs to. For example, we can setup 3 categories LOW_MARGIN,
MEDIUM_MARGIN, HIGH_MARGIN. For each of this category, there will be a price
rule that sets the corresponding profit margin such as 20%, 50%, 100%.

I was reading the related source codes after I posted the questions and
these are what I have found:

1. Yes. If average_cost is not set, it uses list_price.
2. Yes. The nightly job can get the unit cost of the inventory items and
calculate the proper cost for the product. If the cost involves other costs,
we can also use the CostComponent for this purpose.

We will be able to implement the price structure based on cost and category
profit margin using price rules. Only thing extra is to calculate the
average cost of a product which I thought was built into the system. But I
think "average cost" itself can mean very differently for different
business. That might be why it was not there.

Please correct me if I am wrong. Thanks.

On Thu, Feb 19, 2009 at 2:44 PM, Vince M. Clark <[hidden email]>wrote:

> I do not understand this part:
> "profit margin based on related categories of this product...."
>
> ----- Original Message -----
> From: "Hansen Wang" <[hidden email]>
> To: [hidden email]
> Sent: Thursday, February 19, 2009 1:47:15 PM (GMT-0600) America/Chicago
> Subject: Re: average cost calculation in price rule
>
> Or is that right, that the "average cost" from price rule action means the
> "average cost" price of the product which is set explicitly from the prices
> tab of a product?
>
> Secondly, does it sound reasonable solution that we use a nightly job to
> update the "average cost" price of the product using the inventory costs of
> all the inventory items for this product?
>
> What we really want is a price structure based on the average cost of based
> on inventory items for a product and a profit margin based on related
> categories of this product.
>
> On Thu, Feb 19, 2009 at 10:27 AM, Hansen Wang <[hidden email]> wrote:
>
> > I have a product whose list price and default price are both set to 5.
> > These are the only explicit prices set for this product. There is also no
> > cost component set for this product. This product has only one inventory
> > item whose cost is 3. I set up a price rule for this product to add 30%
> of
> > average cost to the list price. When I try to add one of this product in
> the
> > cart, the price is shown 6.5, instead of 5.9. The reason is that the
> price
> > rule use the list price as the average cost. Is there any way (out of
> box)
> > the price rule will use inventory cost?
> >
>

[BJ Freeman]

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for clarification
custom pricing can be done per product but selecting a service to do this
https://demo.hotwaxmedia.com/catalog/control/EditProductPrices?productId=WG-5569
see Custom Price Calc Service

see
http://docs.ofbiz.org/display/OFBENDUSER/Price+Rules

Hansen Wang sent the following on 2/19/2009 3:37 PM:

> It just meant the profit margin for the category where the specific product
> belongs to. For example, we can setup 3 categories LOW_MARGIN,
> MEDIUM_MARGIN, HIGH_MARGIN. For each of this category, there will be a price
> rule that sets the corresponding profit margin such as 20%, 50%, 100%.
>
> I was reading the related source codes after I posted the questions and
> these are what I have found:
>
> 1. Yes. If average_cost is not set, it uses list_price.
> 2. Yes. The nightly job can get the unit cost of the inventory items and
> calculate the proper cost for the product. If the cost involves other costs,
> we can also use the CostComponent for this purpose.
>
> We will be able to implement the price structure based on cost and category
> profit margin using price rules. Only thing extra is to calculate the
> average cost of a product which I thought was built into the system. But I
> think "average cost" itself can mean very differently for different
> business. That might be why it was not there.
>
> Please correct me if I am wrong. Thanks.
>
> On Thu, Feb 19, 2009 at 2:44 PM, Vince M. Clark <[hidden email]>wrote:
>
>> I do not understand this part:
>> "profit margin based on related categories of this product...."
>>
>> ----- Original Message -----
>> From: "Hansen Wang" <[hidden email]>
>> To: [hidden email]
>> Sent: Thursday, February 19, 2009 1:47:15 PM (GMT-0600) America/Chicago
>> Subject: Re: average cost calculation in price rule
>>
>> Or is that right, that the "average cost" from price rule action means the
>> "average cost" price of the product which is set explicitly from the prices
>> tab of a product?
>>
>> Secondly, does it sound reasonable solution that we use a nightly job to
>> update the "average cost" price of the product using the inventory costs of
>> all the inventory items for this product?
>>
>> What we really want is a price structure based on the average cost of based
>> on inventory items for a product and a profit margin based on related
>> categories of this product.
>>
>> On Thu, Feb 19, 2009 at 10:27 AM, Hansen Wang <[hidden email]> wrote:
>>
>>> I have a product whose list price and default price are both set to 5.
>>> These are the only explicit prices set for this product. There is also no
>>> cost component set for this product. This product has only one inventory
>>> item whose cost is 3. I set up a price rule for this product to add 30%
>> of
>>> average cost to the list price. When I try to add one of this product in
>> the
>>> cart, the price is shown 6.5, instead of 5.9. The reason is that the
>> price
>>> rule use the list price as the average cost. Is there any way (out of
>> box)
>>> the price rule will use inventory cost?
>>>
>

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