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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 do business users face in price settings?

• 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 the basis of different data, parameters, and segmentation (region, type of customer, type of product).

• Automated price lists creation on the base of defined rules.

• Automated recalculation on the basis 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 depend 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 it? Pricelists are typically used for price setting where prices are not changing very frequently and revisions need to be created on a quarterly/half-yearly basis. It is also a tool for creating different pricelists on the base of the 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 it? 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 it? When pricing managers 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 need to be changed and we want to see the impact on the resulting 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 the 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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