The price level option is a handy tool allowing you to change the standard charges you enter into QuickBooks to bill out to your customers. QuickBooks gives you two different types of price levels: fixed percentage and per item. I explain the difference between fixed percentage price levels and per item price levels in the first article in this series of articles about QuickBooks price levels.

Ready to get started?

Please start QuickBooks and make sure your company file is open.

Setting Up a Fixed Percentage Price Level

From the Price Level drop-down menu at the bottom left-hand side of this list select New. The New Price Level form opens.

• In the Price Level Name field, type 10% Increase. I'm setting up a generic increase that you can associate with many different customers. Remember, you can make this field as descriptive as necessary.
• Press the TAB key twice. From the Price Level Type drop-down menu select Fixed %.
• The form will refresh. Press the TAB key once. You now have the option of decreasing or increasing your price level. Since the purpose of this new price level is a 10% increase, from the drop-down menu select increase.
• Press the TAB key once. In the item prices by field, type 10%.
• You're almost done entering this price level, but I want to go over one last selection on this dialog box. The next drop-down menu, Round up to nearest, is pretty nifty. It allows you to round your price up or down by a multitude of different calculations. Briefly, check out the options on the drop-down menu - this may come in handy for your business in the future.

Click OK to save this price level.

Setting Up a Per Item Price Level

Now let's enter a price level for an item: From the Price Level drop-down menu at the bottom left-hand side of this list select New to once again open the New Price Level form.

• In the Price Level Name field, type a description such as XXX Decrease substituting one of your own arts or crafts items for XXX. Press the TAB key twice. From the Price Level Type drop-down menu select Per Item.
• The form will refresh showing all items you currently have in your item list. In far left-hand checkmark column, click to select XXX.
• Position your cursor in the Adjust price of marked items to be field and enter 5.0%. Press the TAB key once. From the lower/higher dropdown menu select lower.
• Press the TAB key once. This field gives you a choice between standard price (what you normally charge your arts and crafts customers for this item), cost (your cost to purchase or create) or current custom price (if there are already modifications to the item in place). Select standard price.
• Press the TAB key once, click Adjust. Check it out! The Custom Price column for this item now reflects your new custom price.

Click OK to exit this price level.

Keep in mind the possibilities for tailoring prices for specific customers or jobs are endless. Play around with this feature now and you'll be ready to use it for your next arts and crafts customer!

Next - find out how to associate price levels with your customers and their invoices.