Recommended Retail Price (Price Setting)

Owned by Ondřej Tesař
Sept 30, 2024
1 min read

In this strategy, the price is actually not calculated, but rather read from a table.

Calculations

The price:

  • Will be available in the price list/grid in the Final (List) Price.

  • Can be read from either a Product Extension or Company Parameter table.

References

Use Case Examples

Here are a few use cases for the Recommended Retail Price (RRP) pricing strategy:

  1. Distribution and wholesale pricing – Many distributors and wholesalers have agreements with manufacturers and suppliers to set the RRP for their products. This pricing strategy allows them to automatically calculate and apply the RRP to their product offerings. By setting the RRP at the supplier or manufacturer level, distributors and wholesalers can ensure consistent pricing across their entire product catalog.

  2. New product introductions – When introducing new products to the market, manufacturers and suppliers may want to base their initial pricing strategy on RRP. This allows them to set a starting point for their pricing and adjust it over time based on feedback from the market and competitors. The RRP pricing strategy can help manufacturers and suppliers ensure they are staying competitive while still maintaining consistent profit margins.

Overall, the RRP pricing strategy is a useful tool for businesses looking to automate their pricing processes based on external recommendations or agreements. It can be particularly effective in industries where distribution, wholesale, and retail pricing is common, allowing businesses to streamline their pricing processes while still maintaining consistency and competitiveness.