Bindery Pricing Table Details

The option for variable bindery pricing opens up a world of possibilities in the Bindery area.  The variable pricing comes from tables that you can define.  The tables operate much like the press rates tables.  That is, the greater the quantity, the less something costs per thousand.  There are two kinds of tables.  The first is called a "Flat Table".  The Flat Table contains only two columns.  Quantity is in the first column.  The second column contains factors that relate to the quantities.  We will use the "ADDRESS" option as our first example.

Notice that before we start, neither of the factor tables is used with this option.  The cost per thousand (which is related to the type and size of stock being addressed) is the same no matter how many  addresses are being applied.

 

By selecting the Flat Table option, a sample flat table will open so that you can enter price break points.

 

At the very top of the Bindery Factor Table form are the two labels.  The second label explains that the Quantity column represents Copies * Repetitions.  This comes from the Formula Class on the Bindery form.  It shows Class 3 which is Setup + (Price Each * Copies * Repetitions).  Setup (if there is one) and Price Each are always related to the sheet or envelope being acted upon.  Search for Bindery Relations in the Help menu - Help Topics for further information on the Bindery to Stock relationship. The numbers in Quantity and Factor are only sample numbers that will remind you of how the table should look after you have stored your own break points and factors.  You should always start out with a quantity of 1 and a factor of 1.000.  This tells the pricing routine to multiply the "price" (the price each times the quantity) times 1.000 until the quantity gets to the first break point (100 in the sample).  For example, by clicking the Sheets button on the Bindery option form we can see that the Setup Price is 0.00 and the price per label is 0.05.  Therefor without the table, 10,000 labels will cost the customer $500.00.  But by using the Flat Table and the sample numbers the same 10,000 labels will cost the customer $50.00 times the factor 0.900 or $450.00.  If there are 8,000 labels the cost will be 8,000 times 0.05 times 0.91 or $364.00.  We used 0.91 from the table because 8,000 is less than 10,000 and more than 1,000. The next thing to consider here is the Quantity/Price Transition.  The above scenario of 8,000 labels costing $361.00, will be true only if the Step Transition is selected.  Step means the factor used is the one next to the quantity at or below the quantity in question.  In this case 8,000 labels will use the factor for 5,000.  Like wise 3,000 labels will use the factor next to 1,000.  The factor will step to the next level when the quantity reaches the next level.  The other option is to select the Slope Transition.

 

Using the Slope Transition (the one selected), 8,000 labels would calculate a factor between 0.91 and 0.90 because 8,000 is between 5,000 and 10,000.  Without getting into the formula used let me just say that 8,000 is closer to 10,000 than it is to 5,000 so the factor will be closer to 0.90 than it is to 0.91.  In this case the factor will be 0.904.  So the 8,000 labels will cost 8,000 times .05 times 0.904, or $361.60.  The factor will always be on the slope of the transition from one quantity to the next. The advantage of using the Step Transition is that the factor is always known immediately by looking at the table.  The disadvantage is that the price for a quantity that is one less than a break point will cost more than for a quantity at the break point.  Or 9,999 labels will cost $454.95 while 10,000 labels will cost $450.00. The advantage of using the slope is that the price for a quantity that is one less than the break point will cost less than a quantity at the break point.  Or 9,999 labels will cost $449.95 while 10,000 will cost $450.00.  The disadvantage is that it is difficult to calculate the actual factor (although it is easy for the computer to do it). You can enter as many or as few break points as you need.  You must have at least two but you can have several hundred if you need them.  Notice that the Formula Class for Labels has a Repetitions parameter in it, but the Request Repetitions check box is not checked.  When it is not checked the formula defaults to one repetition.  If it was checked, when you selected Labels from the Bindery Options form to go onto a job, the Quantity field would default to 1 but you would be able to change it to 2 or 3 or more.  If you did put 2 into the Quantity field the number of labels would be doubled, so the quantity being compared to the table would be twice as great.