Companies use price lists for tracking the cost of goods purchased and the retail price of goods and services that are sold. A simple price list might include as little as the brand name, the specific product or service and the price. Some businesses might have only one price list for all of its products. However, a business such as a bakery that sells its goods to cafes for resale may have a different price list with wholesale pricing.
There are two basic types of price lists: Cost and Sell. Cost lists are used to determine how much a product costs. Sell lists often are provided to consumers to aid in their purchase processes; in this respect a price list serves as a quote. These lists can be updated as often as necessary to record increases and decreases in costs or retail prices of products and services.
Things You'll Need
- Program for creating a list such as: Microsoft Word, Excel, Pages or Sage Accounting Software
Step 1: Determine Price List Type
Does your business require a cost list, a sell list or both? If you purchase any type of goods for manufacture or resale, your company will require a cost list. If it sells products or services, a price list will be needed.
Step 2: Determine If the Price Type Is Unit or List
There are two types of prices on price lists: unit price and list price. A unit price is determined by the product manufacturer and most often used on a cost list. A list price is the price that the product is sold for. Some manufacturers recommend a list price for all distributors, called the MSRP (manufacturer's suggested retail price). However, as the name suggests, these are suggested prices. A company may choose to sell the item for less if it is on sale or on a permanent discount in order to remain competitive. They also may choose to sell the product for more than MSRP. Whichever price a business decides to sell its product at will be the list price.
Step 3: Create a Table
Utilize the software of your choice to create a data table for your price list. This table should have as many columns as there are important data points. For example, if your price lists includes Brand Name, Product Name, Retail Price, and Bulk Price, it should have four columns. Create as many rows as you have products. Label each column with the title of the data required within it.
Step 4: Compile and Insert Data for All Products
Under the headings Brand Name and Product Name, list each and every one of the products you plan to buy or sell. For a cost list, include the purchase price of the goods in the appropriate column. For sell lists include the price for which you will sell the product. It is worth noting whether or not a product is taxable.
Be specific with your products. Brands often have a wide variety of similar products, and specificity will add clarity to your price list.
Step 5: Date the Price List
Because prices change over time, it is very important to date every price list you create.