SOP - Pricing and Quotes

PRICING AND QUOTING SOP - TABLE OF CONTENTS

PR-Q-001 DO Quotes

PR-Q-002 TSB Quotes

PR-Q-003 GD Quotes

PR-Q-004 Pricing for Non-Inventory Products

PR-Q-005 ASI / Wholesale Pricing

PR-Q-006 Price Matching

PR-Q-007 Bulk Pricing

PR-Q-001 DO Quotes

Situation: When a new client calls into DO or a returning DO client requires a quote.

Policy: Our goal is to proactively provide our client with a fast and accurate quote to obtain or retain their business.

Procedure:

● If speaking on the phone, ask for the client’s name and email address. If it is an inbound email, copy the address.

● Open Quote Ninja and hit “New Quote”. https://app.quoteninja.com/store/f2575/quotes?status=all

● Fill in the name and email address, if it is a returning client their info should auto-populate when you fill the email field.

● If you would like to send personalized notes to the client, fill out the “Customer Notes” field.

● Search and select the products. Select the product options and click “Add Product”.

● Once the item is added to the line you can add any necessary discount either by changing the price to what you are quoting, or you can type in the percentage in the “discount” field in the item line. Notice that 7% discount, for example, must be typed with zeros so that it shows 7.00%.

● When ready to send, hit “Draft Quote” in the bottom right corner, double check the product(s) and prices in the pop up before hitting “Send Quote”.

Further actions & tasks

● The quote email will send to the client and cc info@backdrop.com. If you like, you can send a direct reply in this thread to the client to help email visibility. You can provide further instructions like “Please find the quote in the email below, click the Proceed to Checkout button to place your order” etc.

● After 24 hours if an order has not been placed, an automated follow up task will be assigned to zSales & Support in Hubspot.

● The sales rep responsible for this quote should send a reply in thread to the client, general follow up like “I'm writing to follow up, did you have a chance to look over my email? Let me know how you would like to proceed!”.

● Sales rep should then update the task in HS, push the deadline date out to an appropriate date in the future to send the next follow up. Leave a note in the notes section mentioning each time a follow up is sent to the client.

PR-Q-002 TSB Quotes

Situation: When a new client calls into TSB or a returning TSB client requires a quote.

Policy: Our goal is to proactively provide our client with a fast and accurate quote to obtain or retain their business.

Procedure:

● If speaking on the phone, ask for the client’s name and email address. If it is an inbound email, copy the address.

● In Shopify, hit the Orders tab and then Create Order. Add the client’s email in the top right Customer section. Search the product to add it to the quote. Unfortunately, the options for the product must be individually searched. It is easiest to head to the website to view the wording of each option on the product you are quoting and then copy and pasting it into the Product Search section in the order/quote you are making in Shopify.

● Add any discount either by changing the price of each product or option you have added or in the Discount field below, which will discount the entire order.

● Select the shipping method from the Shipping field.

● Hit Send Invoice. Make sure to hit the CC / BCC option so you can manually add in info@backdrop.com. The subject line should read “Trade Show Booth - Quote #[Quote number]”. The quote number can be found at the top of this order page, it will typically start #D and then 3 numbers. If this is an add-on quote for a current order, it is good practice to add in the current order number into the subject line for easy visibility.

●Add a custom message in the body of the email as necessary.

●Hit Review Invoice and then Send Invoice.

Further actions & tasks

● The quote email will send to the client and cc info@backdrop.com.

● Set yourself a task in HubSpot to check in after 1-2 days.

● If the client has not ordered, the sales rep responsible for this quote should send a reply in thread to the client, general follow up like “I'm writing to follow up, did you have a chance to look over my email? Let me know how you would like to proceed!”.

PR-Q-003 Galaxy Displays Quotes

Situation: When a new client calls into GD or a returning GD wholesale client requires a quote.

Policy: Our goal is to proactively provide our client with a fast and accurate quote to obtain or retain their business. As these are our wholesale/reselling clients we expect that they learn our system, a little less hand holding involved.

Procedure:

● If speaking on the phone, ask for the client’s name and email address. If it is an inbound email, copy the address.

● First, we need to determine if they are a new or returning client. Search GD Big Commerce for their contact and check their customer group. If they are a new client, we need to determine whether they are a reseller or whether they have an ASI account.

If they are a new client and you have determined that they are a reseller:

You would then direct them either on the phone to hit the How To Order button and fill out the form or can link if an inbound email: https://www.galaxydisplays.com/reseller-account-application/
If a formal quote is still required, it must be written out within an email. Use links to the product(s) where possible. Give retail pricing and their pricing within each line. e.g. “10ft QuickZip Backdrop - $999.99 (retail) = $699.99 (your price)” per their pricing tier. See PR-Q-004 for more information.

If they are a returning client and you have determined that they are a reseller:

Link them to the exact display they are looking to receive a quote on and take the opportunity to remind them of how to price out / order - by logging into their account and using our website. Shipping quotes by adding to the cart, clicking to view cart, and gathering from there.
If a formal quote is still required, it must be written out within an email. Use links to the product(s) where possible. Give retail pricing and their pricing within each line. e.g. “10ft QuickZip Backdrop - $999.99 (retail) = $699.99 (your price)” per their pricing tier. See PR-Q-004 for more information.

If they are a new client and you have determined that they are NOT a reseller:

You should direct them to DO or TSB, selling them on the free shipping option and better promotional deals throughout the year. Then follow steps in PR-Q-001 or PR-Q-002 as necessary.

Further actions & tasks

●Set yourself a task in HubSpot to check in after 1-2 days.

●If the client has not ordered, the sales rep responsible for this quote should send a reply in thread to the client, general follow up like “I'm writing to follow up, did you have a chance to look over my email? Let me know how you would like to proceed!”.

●Sales rep should then update the task in HS, push the deadline date out to an appropriate date in the future to send the next follow up. Leave a note in the notes section mentioning each time a follow up is sent to the client.

PR-Q-004 Pricing for Non-Inventory Products

Situation: When needing to price out products that we do not already have listed on our website.

Policy: Our goal is to find out our cost to then be able to determine our selling price to provide to clients or list new products on the website accurately.

Procedure:

If proprietary products from ES or XP:

You must request our cost directly from the facility in China, this will usually be done via the Production Team.
Once you have our cost for the product, the formula is to divide the number by 0.4. E.g., $100 is our cost, divided by 0.4 = $250. We should always adjust the selling price to match our website prices, i.e. marking up to the closest $4.99 or $9.99. For example, if our cost is $91, divided by 0.4 is $227.50 so round up to $229.99. If the number is $0.01 higher than it is ok to mark down, e.g in the case where our cost is $96 and the selling price is $240, mark down to $239.99 to send to the client.
If sending a quote to a client, you must verify with the Production Team about additional fees that need to be accounted for. Tax, international shipping, sea freight or ground shipping from the US should be included when you send the client with the quote, as necessary.
For shipping fees, you can mark up the cost by a few dollars and cents so it appears to be an accurate shipping quote. For example, ES/XP will often say shipping will be a rounded number like $400, mark up a few dollars and cents randomly, e.g., $407.64 etc.

If not proprietary products, from suppliers:

Look on the supplier’s website for the product you are pricing, if you cannot find what you are looking for, contact the supplier.
Once you have our cost for the product, the formula is to divide the number by 0.6. E.g., $102 is our cost, divided by 0.6 = $170. We should always adjust the selling price to match our website prices, i.e marking up to the closest $4.99 or $9.99. For example, if our cost is $100, divided by 0.6 is $166.67 so round up to $169.99. If the number is $0.01 higher than it is ok to mark down, e.g in the case where our cost is $102 and the selling price is $170, mark down to $169.99 to send to the client.
Make sure to consider the shipping dimensions and weight of the product. If creating a new product for the website, you would add that information in. If sending a quote to the client, you can determine the shipping cost (if not applicable for free shipping).

PR-Q-005 ASI / Wholesale Pricing

Situation: When wholesale/reselling clients need to know pricing for standard and non-inventory products.

Procedure:

If regular products on our website:

Please see PR-Q-003 Galaxy Displays Quotes to advise clients on how they can price out themselves.
If they need a quick price while on the phone or if you would like to pass over that information in your reply to an inbound email, the quickest way is to login on the website. Check their customer account on Big Commerce to see their discount tier, make yourself an account or update your account matching that tier. Hit the three dots under the Action column on your customer profile and then click “Login”. This will take you to GalaxyDisplays.com logged into the account with that discount tier. You can then head to the product on the website and provide accurate pricing.

If non-inventory products, not on our website:

First you must determine our retail selling price. Please see PR-Q-004 Pricing for Non-Inventory Products to determine that selling price.
Once you have determined the retail cost you would then discount per their discount tier on the backend of Big Commerce. Find the client’s customer account in Big Commerce to see their discount tier.
Once found, you will then need to discount based on whether it is a proprietary product or a product from one of our suppliers. ASI/Wholesale/Sage accounts have a storewide discount of 20% (for supplier-based products), they have a deeper discount of 30% on proprietary products. Design/Marketing accounts have a storewide discount of 10% (for supplier-based products), they have a deeper discount of 15% on proprietary products.
Examples:

▪ASI client, non-proprietary product so 20% discount off retail. Our cost $100, divided by 0.6 is $166.67, retail selling price (per GD website, which ends in $5.00 or $10.00) is $170. So, 20% of $170 is $136.

▪Design client, proprietary product so 15% discount off retail. Our cost $100, divided by 0.4 is $250, retail selling price (per GD website, which ends in $5.00 or $10.00) is $250. 15% of $250 is $212.50. *We do not round up our discounted cost to the nearest $5 or $10, we only do this with retail pricing.

PR-Q-006 Price Matching

Situation: When a client provides us with a quote from a competitor for a comparable product that is a lower price than ours.

Policy: Ensure the quote from the competitor is the final price, find out our cost and available margin to then determine whether we can match the price.

Procedure:

●Have the client provide the quote, ensure it is a final quote (shipping, tax, setup, or hidden fees included).

●Verify that the product is a comparable product to one of ours, many competitors have their own version of the QuickZip and Perfect-Pop for example. The display being price matched must be the same style, material, frame, and print process, e.g., we do not match a product that is screen pressed with one of our dye-sublimated products. We also do not price match different styles of displays, i.e., we would not price match a competitor’s Perfect-Pop style display with one of our QuickZip displays.

●Determine our cost and so therefore our margin. If unknown, check with the production team and/or a supervisor.

●If we have margin to make a profit on the sale, request a price match approval from a supervisor or Jackie.

If approved by the supervisor:

Prepare a quote using the following formula: match the price from the competitor and then beat it by 10% of the difference. E.g., Our display is $899.99, the competitor’s price is $799.99 - the difference is $100. We would match their price, $799.99 and then beat it by 10% of the difference, which is $10. Our proposed quote would be $789.99. *Please note, this is the general policy but if the difference is more than $50 check with a supervisor. We will likely adjust the formula to maximize our margin while still beating the competitor’s price. In some cases, we may simply match the price of the competitor only and not beat it.
Make a “Contact” profile in HubSpot for the client and attach the price quote. Also add the quote information in a note so we have a record of it, e.g., the final quote offered. Pin it to the top of the contact for future reference.

If we do not have margin to make a profit on the sale or the supervisor does not approve the price match:

Let the client know that unfortunately, we cannot match the price. Still offer a discount between 7-12% to try and win the sale.

Create appropriate tasks

●Create a Task to follow up with the client in 1-2 business days as necessary if they have not yet ordered.

●Sales rep should then update the task in HS, push the deadline date out to an appropriate date in the future to send the next follow up. Leave a note in the notes section mentioning each time a follow up is sent to the client.

PR-Q-007 Bulk Pricing

Situation: When a client is looking to order quantity 3 or more of a product.

Policy: Provide the client with accurate discounted pricing for a bulk order. Often the client has contacted multiple companies and so we must aim to be as competitive and provide the best price.

Procedure:

Retail bulk orders for non-proprietary products from suppliers:

Reach out to the supplier directly. Check to see what percentage they will discount by and then match that percentage on our retail cost. E.g. we sell an NAD product for $1000 retail price. The quantity is x and NAD inform us they can offer 15% discount. We discount our retail price by 15% too, so we would inform the client that our price is $850 per unit.
Shipping/freight fees are usually applicable with bulk orders, regardless of our promotion for free shipping on orders over $1000. *In some cases we may offer free shipping as well as the discounted price. This would typically be approved for smaller bulk orders, quantities of 3-10 or if for example, it is a WS product, they offer free ground shipping regardless of quantity so we would honor that to the client too. Speak to the supplier and/or the production team to determine our shipping cost. We do not charge the client retail rates for shipping/freight on bulk orders. We would quote our cost, only marking up a little to cover any unexpected fees (e.g., mark up $10-50).

Retail bulk orders for proprietary products (ES or XP):

Head to the Bulk Pricing spreadsheet: https://docs.google.com/spreadsheets/d/1mUqxpgNctQMXmqp4-fMDfsTh0_c-wSqVGdNKlO0jAFk/edit?usp=sharing. Find the product in the Retail Discounts tab. Add the quantity in the correct field and then note down the percentage. *Note that the pricing may be outdated so do not go by the price amount in the spreadsheet, take the percentage and do the math instead.
After determining the discount for the bulk order, always seek approval from the production team and a supervisor.
Shipping/freight fees are usually applicable with bulk orders, regardless of our promotion for free shipping on orders over $1000. Speak to the production team to determine our shipping cost. We do not charge the client retail rates for shipping/freight on bulk orders. We would quote our cost, only marking up a little to cover any unexpected fees (e.g., mark up $10-50).

Wholesale/ASI bulk orders for non-proprietary products from suppliers:

Reach out to the supplier directly. Check to see what percentage they will discount by and then match that percentage after the discount cost. E.g., we sell an NAD product for $1000 retail price, our ASI client gets 20% off. The quantity is x and NAD inform us they can offer 15% discount. We discount our retail price by the regular 20% and then discount the new selling price number by 15%. Do not discount 20% + 15% = 35% off retail. So, $1000 is retail, their regular 20% means their price would be $800. Then take 15% bulk discount off $800. We inform the client their price is $680 per unit.
Shipping/freight fees are always applicable with bulk orders. Speak to the supplier and/or the production team to determine our shipping cost. We do not charge the client retail rates for shipping/freight on bulk orders. We would quote our cost, only marking up a little to cover any unexpected fees (e.g., mark up $10-50).

Wholesale/ASI bulk orders for proprietary products (ES or XP):

Head to the Bulk Pricing spreadsheet: https://docs.google.com/spreadsheets/d/1mUqxpgNctQMXmqp4-fMDfsTh0_c-wSqVGdNKlO0jAFk/edit?usp=sharing. Find the product in the ASI or Marketing tabs as applicable. Add the quantity in the correct field and then note down the percentage. *Note that the pricing may be outdated so do not go by the price amount in the spreadsheet, take the percentage and do the math instead. Make sure to discount by that percentage after the client’s regular discount cost. E.g., we sell the QuickZip Straight for $1000 retail price, our ASI client gets 30% off. The quantity is 20 and so the discount percentage is 7%. We discount our retail price by the regular 30% and then discount the new selling price number by 7%. Do not discount 30% + 7% = 37% off retail. So, $1000 is retail, their regular 30% means their price would be $700. Then take 7% bulk discount off $700. We inform the client their price is $651 per unit.
After determining the discount for the bulk order, always seek approval from the production team and a supervisor.
Shipping/freight fees are usually applicable with bulk orders, regardless of our promotion for free shipping on orders over $1000. Speak to the production team to determine our shipping cost. We do not charge the client retail rates for shipping/freight on bulk orders. We would quote our cost, only marking up a little to cover any unexpected fees (e.g., mark up $10-50).

Create appropriate tasks

●Create a Task to follow up with the client in 1-2 business days as necessary if they have not yet ordered.

●Sales rep should then update the task in HS, push the deadline date out to an appropriate date in the future to send the next follow up. Leave a note in the notes section mentioning each time a follow up is sent to the client.