Compound Pricing

A pricing calculation is used in the system based on user inputs to determine the cost of a product to the customer when creating a formulation. The pricing calculation takes into account the cost of labour, cost of ingredients and adds it to the minimum cost per script to generate a price depending on the dosage form. Multiple pricing options can be added to the system for different scenarios to increase efficiency of quoting.

Pricing formula

The basic pricing formula has three variables which are all added together to create the final price. The three variables are the:

1. Labour cost
2. Ingredient cost
3. Minimum cost per script

• Price = Labour Cost + Ingredient Cost + Minimum Cost Per Script

Labour Cost: This is calculated based on the average manufacturing duration, specific to each dosage form, and the labour cost (per minute or per hour), specific to each price option. Therefore, once a dosage form has been selected for a formulation the labour cost is calculated:

• Labour Cost/ (min or hour) = Average compounding time/(min or hour) x Labour Cost/(min or hour)

Ingredient Cost: This is calculated based on the sum of each ingredient's cost per gram (or mL when a liquid), multiplied by the ingredient markup specific to each pricing option. Each ingredient cost per gram is calculated based on the preference selected in the ingredients page (see Editing an Ingredient tutorial).

• Ingredient Cost = Ingredient A (Cost/ gram) + Ingredient B (Cost/ gram) … x Ingredient cost multiplier

'Ingredient cost multiplier'

This is a multiplier on the cost of your ingredients to indicate the desired markup. An ingredient cost multiplier of 1 applies a 1x multiplier to an ingredient cost and indicates no markup on cost. A multiplier of 2 applies a 2x multiplier to an ingredient and adds an effective 100% markup. The 'Ingredient cost multiplier' is set when creating a new pricing option.

• Ingredient cost multiplier = 1 + markup

Minimum cost per script:
This is a default value specific to each pricing option and is the minimum cost of the script before adding labour and ingredient costs. This value can be set as per the requirements of the business, if a minimum cost per script is desired.

Example:

See below for an example on how price is determined for an arbitrary dosage form and formulation with three ingredients.

Pricing and Devicesstandard Package

The inclusion of the consumables add-on allows you to include the price of you devices in your compound pricing option. This is done by adding a fourth variable to your 'Pricing formula':

'Consumable Cost':

Your consumable cost is the total price of all the consumable device used in a preparation multiplied by a selected 'Device cost multiplier'. The device cost per unit is configured on the device variant page. (see Editing a device tutorial).

• Consumable Cost = Device A (Cost/ unit) + Device B (Cost/ Unit) … x Device cost multiplier

'Device cost multiplier':

This is a multiplier on the cost of your consumables to indicate the desired markup. A device cost multiplier of 1 applies a 1x multiplier to a consumable cost and indicates no markup on cost. A multiplier of 2 applies a 2x multiplier to a consumable and adds an effective 100% markup. The 'Device cost multiplier' is set when creating a new pricing option.

Finding a Compound Pricing Option

1. Go to the ‘Settings’ page.
2. Click on the ‘Compound Pricing’ button.
3. A list of price options are shown under ‘Compound Pricing’.
4. A setting for the preferred price option sorting method is also shown near ‘Price Option Setting’.
5. Once the correct price option is found, click on the name to view it.

Adding a new Pricing Option

1. Go to the ‘Settings’ page.
2. Click on the ‘Compound Pricing’ button.
3. Click on the ‘Create Price Option’ button.
4. Add the name of the price option.
5. Add the cost per hour or cost per minute of labour based on staff wages.
6. Add the ingredient cost multiplier.
7. Add the starting cost per script under ‘Base Cost Per Script’.
8. Add the desired device cost multiplier for device specific pricing standard Package
9. Click on the ‘Round to nearest dollar’ box if desired.
10. Add filters if desired to limit what kinds of compounds the price option applies to.
11. Click on the 'Limit by range' box and add the final units range to display the pricing option when the final units are within the range.
12. Click on the 'Limit by dosage form' box and select dosage forms which the pricing option will be displayed for.
13. Click on the ‘Create’ button when finished to create the new price option.

Editing a Pricing Option

1. Go to the ‘Settings’ page.
2. Click on the ‘Compound Pricing’ button.
3. Find the pricing option to be edited and click on the name.
4. Edit the name and price details as desired.
5. Edit price option filters as required.
6. Click on the ‘Save’ button when finished to create the new price option.