How to Develop Pricing Matrices

by Dylan Murray; Updated September 26, 2017
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A price matrix is a useful tool to quickly provide a cost quote for various products when discounts for larger quantities of an item are offered. Price matrices are time saving tools for you and your employees. A price matrix reduces errors and ensures customers are quoted the same price regardless of which employee provides the quote. Keep a printout of the price matrix at all cash registers or work stations for a quick and easy reference.

Items you will need

  • Spreadsheet
  • Calculator
Step 1

List your product categories along the left side of a spreadsheet. For example, a fruit seller might list bananas, oranges, apples and pears.

Step 2

Determine the quantities most often used to sell your product or service. Categories can include price per piece, per case, per pound or lengths of time such as per hour, per day and per week may also be included.

Step 3

List quantities along the top of the spreadsheet. Determine if a range for quantities is needed. Products or services falling within each range should cost the same. For example, if you're charging by weight, charge the same price for a quantity of oranges weighing between 1 and 1.5 pounds.

Step 4

Determine the rate for each product within each quantity. Apply a discount for customers buying larger quantities. The more a customer buys, the bigger discount the customer receives.

Step 5

Calculate the cost for each product within each quantity. This can be done by hand with a calculator, however, a spreadsheet program does the job faster with less chance for error.

Photo Credits

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