ArticlesSimplify Job and Contract Pricing

Simplify Job and Contract Pricing

Managing pricing agreements and consignment locations can quickly become complicated for distributors. Customers expect consistent pricing, accurate billing, and reliable access to stock. Meanwhile, you need to protect your margins and reduce administrative work.

Epicor Prophet 21 simplifies job and contract pricing and gives you full control over consignment locations.
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What Is Job Pricing ?

Job pricing refers to project-based pricing agreements tailored to specific customers or projects.  

Distributors often use job pricing when selling materials or products in bulk for construction jobs, manufacturing runs, and other project-driven work. 

With job pricing, you can: 

  • Offer special rates based on project volume.
  • Lock in pricing for the project duration.
  • Simplify billing by applying the correct pricing automatically.

What Is Contract Pricing ?

Contract pricing involves long-term agreements that establish customer-specific pricing rules. This approach provides predictability for both distributors and customers, making it easier to manage ongoing business relationships. 

For example, a distributor may set contract pricing for a key client who places repeat monthly orders over several years. Prophet 21 ensures that the agreed-upon rates are applied consistently to all orders, thus eliminating disputes.

The Role of Consignment Locations in Distribution

With consignment inventory, stock is kept at a customer’s site, but the seller retains ownership of the items until they are used.  

This setup benefits customers by lowering their risk and ensuring they always have access to the products they need. 

While consignment strengthens relationships for distributors, it can be difficult to track usage, reconcile inventory, and bill accurately without ERP support.

Common Challenges with Pricing Structures without ERP Support

Manual Pricing Errors and Disputes

Without automation, sales representatives may apply inconsistent pricing, which can lead to errors and disputes that reduce customer trust.

Difficulty Tracking Consignment Stock

Manual processes make it difficult to track what has been used at customer sites. This often results in delayed replenishment and frustrated customers when stock runs out.

Lost Revenue from Inaccurate Billing

Without accurate tracking of product usage, billable items can slip through the cracks. This results in lost revenue and lower profitability.

High Administrative Overhead

Manually reconciling consignment locations and managing custom pricing is time-consuming. Staff spend more time fixing mistakes than developing relationships with customers.

How Epicor Prophet 21 Supports Pricing Structures ?

Flexible Pricing Rules

With Prophet 21, you can set detailed pricing rules for jobs, contracts, and individual customers. Whether you need volume discounts, tiered pricing, or time-based agreements, you can configure them all directly in the system.

Suivi et application automatisés

Once set, pricing rules are applied automatically to every order. This eliminates guesswork, reduces disputes, and ensures accurate billing.

Improved Customer Confidence

Customers know they’re always getting the agreed-upon price. This fosters trust and strengthens long-term relationships.

How Prophet 21 Manages Consignment Locations ?

Inventory Visibility

With Prophet 21, you have real-time visibility into consignment inventory. With it, you’ll always know what’s available at customer sites and when replenishment will be needed.

Simplified Billing and Replenishment

The system tracks consumption and triggers billing only when items are used. Automated replenishment rules prevent stockouts and keep customers satisfied.

Reconciliation and Reporting

Prophet 21 generates detailed reports that align financials and inventory records, making monthly reconciliation far less painful.

Benefits of Using P21 for Pricing Structures and Consignment Locations

Reduced Pricing Errors

Mistakes happen when pricing is managed manually. Discounts may be applied inconsistently, contracts may be misread, and project-specific rates may be overlooked.  

With Prophet 21, all of this is automated. The system enforces your pricing rules, ensuring that the correct price is always applied. This reduces costly mistakes and protects your credibility with customers.

Better Customer Satisfaction

Customers expect more than just timely deliveries; they want transparency and reliability. With Prophet 21, they always receive the agreed-upon pricing and never encounter unexpected billing surprises.  

Consignment locations mean customers have products available when they need them without having to overstock. This reliability fosters trust, which is essential in industries where customers can easily turn to competitors.

Stronger Margins with Controlled Pricing

Special deals and discounts can quickly reduce profits if not managed carefully. Prophet 21 pricing safeguards help you avoid undercutting yourself or missing out on revenue.  

By maintaining tight control over pricing, you can offer customers value and maintain healthy profit margins.

Improved Operational Efficiency

Without ERP support, staff waste time chasing down errors, reconciling consignment stock, or adjusting invoices.

Prophet 21 automates these processes, saving time across departments. The result is a leaner workflow, faster invoicing, and reduced administrative overhead.

Your team can focus on building relationships and growing the business.

Increased Visibility

Prophet 21’s reporting tools show how pricing agreements and consignment locations are performing.  

Know which contracts are profitable, where margins are tight, and how consignment stock is moving for smarter decision-making about agreements to renew, renegotiate, or expand for long-term growth.

Scalability for Growth

As your distribution business grows, so does the number of contracts, projects, and consignment locations you have to manage.  

Prophet 21 can grow with you, making it just as effective for a small distributor as it is for a large operation. You can add complexity without adding chaos.

Get Expert Help with Epicor Prophet 21

Managing complex pricing structures and consignment locations doesn’t have to be overwhelming.  

With Epicor Prophet 21, you have the tools you need to simplify operations, improve accuracy, and provide a better experience for your customers. 

At EC Solutions, we have over 20 years of experience helping distributors boost their Epicor ERP performances. 

Are you ready to see how P21 can benefit your business? 

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