Packages consist of two different types of products: Fixed Products and Variable Products.
The decision to add a product as a Fixed Product vs. a Variable Product is based on product choice or selection. Does the selection of a certain product change because of the number of people? Or does this package offer similar products that I can choose from depending on a client preference? To best present a Package in a costing, the software separates fixed products (products with a fixed product choice) from variable products (products with variable options or choices). See the following examples of Fixed Products and Variable Products below.
Example Scenario: A Package called Cattle Drive consists of a per person cattle drive fee, bottled water, transportation to the ranch, on-site staff for the activity, and an on-site buffet lunch with a single menu option. For this scenario, let’s take a look at the Fixed Products and Variable Products.
Cattle Drive Fee – The choice to use of this product does not depend on how many are attending the activity. This fee is a set price for each person, no matter the number of people. However, if some vendors/suppliers give discounts or have different price levels based on the number of people then please list the products under Variable.
Bottled Water – The choice to use this product does not depend on the number of people attending the event. Fixed products are not concerned with the quantity of bottled water purchased or sold, just whether there are multiple choices of water.
On-Site Buffet Lunch – This particular product is listed under Fixed Products, because we only offer one type of lunch buffet and the client does not have a choice of menus. If the vendor/supplier offered different menus then list this product under variable.
Transportation - Transportation is an example of variable product. The choice to use a mini-coach over a motor coaches (or any other type of vehicles) depends on the number of people traveling to the ranch in the above scenario. Both products need to be entered into the package as variable products allow for multiple products to be entered and managed easily in a costing.
Staffing - The choice of staffing can depend on the number of people attending the event. Many organizations have various staff roles, such as, Lead/Senior staff, Coordination Staff, Dispatch Staff, or maybe even staff related items such as, staff parking, radios, or lunch for staff.