What value does Price Setting provide to users? 

The Price Setting functionality helps to define and manage pricing strategy, providing the tools to calculate, simulate and publish all your product prices. 

The module supports price policy definition, setup of price guidelines, calculations and simulations of gross, special and net prices including algorithmic optimization, as well as the rule based or manual approval of price calculation results.

What typical challenges business users face in price setting?

• Slow and laborious mass price updates that occupy the pricing team for weeks

• Slow response to changes in cost, competition and demand

• Reducing profit margins resulting from uncontrolled and inconsistent discounting practices

• Difficulty managing increasingly complex pricing strategy, rules and guidelines

Typical User Scenarios for solving the challenges

The module can be used for the following scenarios: 

• Setting up the rules for price calculation on base of different data, parameters and segmentation (region, type of customer, type of product).

• Automated price lists creation on base of defined rules.

• Automated recalculation on base of changed data, like competition, cost, stock, market index, etc.

• Approval workflows and approval thresholds for final prices that are not aligned with company targets.

• Different price calculation logics depending on the region, customer or product.

Price Setting Key Functionality

Price Builder contains three sections to explore: Price Lists, Live Price Grids and Simulations. 

Pricelists

When to use? Pricelist are typically used for price setting where prices are not changing very frequently and revisions need to be created on quarterly/half-yearly basis. It also a tool for creating different pricelists on base of region, product or customer. Primarily used by B2B businesses.

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To see Pricelists in action, check our video tutorials.

Live Price Grids 

When to use? Live Price Grids (LPG) are typically used when a large number of products need to be priced and the prices need to be updated frequently. Companies that want to pursue dynamic pricing strategies usually work with LPGs. Mixed use of B2B and B2C businesses.

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To see Pricelists in action, check our video tutorials.

Simulations

When to use? When pricing manager want to see the impact of, for example, target margin change on the final price, they work with Simulations. This functional area offers to use existing Pricelists or Live Price Grids to simulate some changes which will be then underlined by dedicated columns within the simulated Pricelist.

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The product/customer price adjustments needs to be change and we want to see the impact on the result price before changing/reviewing existing pricelists.

Where to start with Price Setting?

Pricefx offers Accelerate Price Setting Package that can help to start using tool capabilities faster than traditional implementation approach.

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• Competition Based Pricing

• RRP (Recommended Retail Price)

• Promotion Pricing

• Cost Plus

• Price Increase

• Value Based Pricing

Implementation examples

Consumer Electronics - 30 million prices recalculation and distribution, global competition-based pricing strategy, instant prices export.

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