Procurement volatility: how to change prices so as not to lose customer trust

Cost volatility (frequent changes in purchase prices) is a significant challenge for businesses. To update prices in Torgsoft without chaos, mistakes at the checkout, and loss of customer trust, it is necessary to use controlled revaluation tools, currency linkage, and correct cost calculation methods.

Below is a step-by-step strategy based on the program's functionality.

1. Choosing a Cost Calculation Strategy

To correctly form prices in volatile conditions, it is important to choose the right method of cost calculation in the settings (Settings — Parameters — Accounting).

• "Last Purchase Price" Method. If you choose this method, the cost in the warehouse will always reflect the last purchase price. This is convenient for quick market price adjustments, but it can distort real profit if you have old stock bought cheaper.

• "By Delivery Batch and Currency Rate" Method. This is the most recommended method for working with volatile goods purchased in foreign currency. If the exchange rate changes, the program will recalculate the cost of remaining stock based on the nearest rate, but not less than the date of the arrival invoice.

2. How to Avoid Chaos: The "Revaluation Act" Tool

To avoid a situation where the price in the program has already changed but the old price tag is still on the shelf (which undermines customer trust), use the «Revaluation Act» mode (Document — Revaluation Act).

This allows you to prepare new prices in advance but apply them immediately only after the hall is ready.

Algorithm for actions without chaos:

1. Creating the Act. Create a new revaluation act.
2. Adding Products. Add the products that need price changes. This can be done by scanning, selecting from the stock, or bulk adding product groups.
3. Setting New Prices. You can change prices manually or use the bulk change function (e.g., increase by 10% or set a markup).
4. Printing Price Tags. Directly from the revaluation act form, print new price labels for products before the new prices go live in the system.
5. Replacing Price Tags. Physically replace price tags in the store.
6. Applying. Click the «Apply Revaluation» button. Only at this moment will the price change at the checkout.

3. Automation with Currency Linkage

If volatility is linked to currency fluctuations, use the tool «Calculation of Retail and Wholesale Prices by Markup and Exchange Rate» (Warehouse — Calculation of Retail and Wholesale Prices...).

• Equivalent Price. In the product card, you can set the «Equivalent Price in Currency».

• Exchange Rate Update. Enter the current exchange rate in the currency reference book (Payments — Currency Rate).

• Recalculation. In the price calculation form, select the calculation method «From Equivalent Price» and the rate «Only Today» or «Nearest». The program will automatically recalculate retail prices in the national currency.

• Application. You can apply the new prices «Immediately» (if you have electronic price tags or an online store) or create a «Revaluation Act» for controlled replacement of paper price tags.

4. Control and Transparency (Maintaining Trust)

To avoid staff mistakes and "self-management," which leads to loss of trust:

• Revaluation Protocol. All price changes are recorded in the «Revaluation Protocol» (Document — Revaluation Protocol). Here you can see who, when, and how changed the price. This allows for investigating conflicting situations with customers.

• Warning on Arrival. Enable the setting «Warn about Revaluation of Goods on Arrival». If the purchase price changes during a new delivery and this affects the retail price of stock, the program will warn about this to avoid two different prices for the same product.

• Price Change History. If there are doubts about the price of a particular product, use the «Price and Discount Change History» function in the stock state.

5. Working with a Chain of Stores

If you have multiple stores, to avoid a situation where one store has already changed the price and another has the old one:

• Use the setting «Maintain Same Prices Across All Locations». When the price changes in the central system, it will automatically update across the entire chain during synchronization.

• Or use «Regional Price Lists» if the pricing policy in different regions differs due to logistical costs.

Summary: Step-by-Step Actions

1. When a new batch arrives with a different cost or an exchange rate change, do not change the price "on the fly" in the product card if the product is already on the floor.

2. Create a Revaluation Act.

3. Print new price tags from this Act.

4. Task the staff with replacing the price tags.

5. Only after confirming the replacement, click «Apply» in the Revaluation Act.

This approach ensures that the price at the checkout will always match the price on the price tag, which is the foundation of customer trust.