Price Strategies

The main purpose of the Accelerate Price Setting Package is calculation and management of prices. That is why price calculation is one of the fundamentals in the package. Price Setting Package uses Price Strategies to calculate prices. From business perspective, price strategy represents the technical implementation of your pricing rules. When a price strategy is executed, it results in a price proposal for your product. You can have different price strategies for every product segment. We will calculate all of them and the one with the highest priority will end up as the final price proposal for your product.

Technically Price Setting Package uses Calculation Engines to calculate prices. A useable Pricing Strategy is a combination of Strategy Engine (some Groovy code) and StrategyDefinition PP (Price Parameter table combining the Strategy Engine with additional configuration parameters).

Pre-configured Price Strategies

The package comes with the following pre-configured Price Strategies:

Price Strategy	How it calculates prices	What data is used

Price Strategy	How it calculates prices	What data is used
Minimum Competition Based Price	The minimum/average/maximum competition price. You can configure if you want to: directly map to the competitor price or reposition against it (using relative or absolute values).	By default all competition data for the SKU is used. You can limit it to only relevant competition data. The minimum margin and cost are passed to the engine, so you can configure it to skip competitors which you cannot afford to position against.
Average Competition Based Price
Maximum Competition Based Price
Recommended Retail Price	Recommended retail price coming from an external source.	Lookup in Product Extension with a list of Recommended Retail Prices.
Cost Plus	Calculation of Cost Plus Price. The provided example uses the relative plus factor (percentage) and applies it to the given cost base. It is possible to change it to an absolute value.	Product cost (or complex cost types), defined “plus” with absolute or relative values.
Price Increase	Increase of the previous price by a relative (percentage) factor. It is possible to change it to an absolute factor.	Actual price of the product and defined “increase” in absolute or relative values.
Kit Pricing	Kit Pricing calculates the price of a kit based on the prices of the sub-components. All of the sub-components have to be in the same PL/LPG.	BoM (Bill of Material) data to define sub-component relations.
Attribute Based Pricing	Attribute Based Pricing prices the products based on “value” of some product attributes. It takes the price from a defined reference product, and performs arithmetic operations (+, -, *, /) based on a defined formula and the values of some product attributes (e.g. “red” will result in + 3€, price will be multiplied by size, …). These values can be direct numeric values (size, …) or discrete values with assigned price impact.	Product reference to define the “base product” for a special product. You will also need: List of attributes that should be considered in the price calculation Translation of discrete attributes or ranges of numerical values to price impact values (if you have such) Formula to calculate the result price based on reference price and the dedicated price impacts

Strategy Engines

These pre-configured examples are provided with the package.

If you need slightly different price strategies, please check how the strategy engines can be used and configured. They allow you to create various price strategies on your own. For details on the engines see:

Custom Strategies

When you need some other specific rule to calculate your price, you can “plug in” your own Custom Engines. A Custom Engine is basically some capsulated function that can be easily connected to the Price Setting Package. You can use the out-of-the-box engines and wrap them in your own engine or start completely from the scratch.