Cost Plus Pricing 

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Propane prices are sometimes set using the "cost plus" method. This is where you establish prices for your customers based on whatever your costs are at the time of delivery plus some fixed amount (which may vary by account). As your costs change, the price to the customer changes accordingly.

For instance, let's say that Customer A is set up as "cost plus 50 cents". At the time of the next delivery, let's say your cost is 60 cents per gallon. This means that the final cost to the customer for this delivery will be $1.10 per gallon. Now let's say that at the time of the next delivery, your costs have gone up to 65 cents. Now the customer will be charged $1.15 per gallon (65 cents + 50 cents).

By the way, this method is based on the "default product" you establish for each customer tank.

Here's how it works.

1. Enter your COST as the "Price" for each of the products involved.  See Add a Product Price or Change a Product Price for details on how to do this.

2. Make sure the proper default product to which this "Cost Plus" pricing relates is assigned to each of your customers.  See Assign a Default Product or Change a Default Product for details on how to do this.

3. Also make sure that each customer using "Cost Plus" pricing has the correct "plus" amount entered in their text box. See Special Plus or Minus Pricing for details on how to do this.

4. The next time a "Cost Plus" delivery is made using the default product, it will be priced by taking the "cost" (which you have entered as the "price") and adding it to the "+/- from Price" amount to determine the final "Cost Plus" price.

5. Whenever the cost changes, simply update the "price" field for that product and all of your "Cost Plus" customers affected will automatically get charged the new "Cost Plus price".