Price Setting Package 1.7.0 Key Features Description

Owned by Ondřej Tesař
Sept 30, 2024
3 min read

This section summarizes some of the highlighted features of the 1.7.0 release. Please note that some of them were already available in older versions of the package, so check the release notes to see in what version the features were introduced.

 

More Information Returned by Pricing Strategies

Strategy Engines can now return more information. Besides the price, they can return a text message to explain the calculation result, giving the business user some more insights.

This is what you can return for your Custom Engines:

return ['price' : 10, 'message' : 'Cheapest comopetitor: Media Markt (11.99€)', 'messageType': 'Info']

The messageType can be the following:

  • Info will be “green”

  • Warning will be “Yellow”

  • Critical will be “Red”

When the engine throws an exception, it will be shown in a “red cell with white text”.

Attribute Based Pricing

Attribute Based Pricing Strategy allows you to define your pricing strategy based on product attributes. The attributes can represent different pricing impact values. The price of the reference product and the value of the pricing relevant attributes will allow you to define your product price accordingly.

Definition of Anchor Data and Strategy Definition

In the first step you have to define the “Anchor-Follower” relations.

Strategy Definition should look like this:

The “Additional Engine Configuration” is like in the old Anchor Engine definition where to find the Anchor data. It has to look like the following example:

 

Select Pricing Relevant Attributes

You can define what attributes are relevant for your pricing strategy.

This is how your PP should look like after this step.

We have following options for type:

  • Value → Convert value to “impact”, like red = 2, green = 4, …

  • Direct → Use the value of the attribute as impact. E.g. 2 kg, 30 %, … (only works for “number” type values).

  • Interval → Define interval boundaries and group to impacts (only works for “number” type values).

Convert Value of Pricing Relevant Attributes to Price Impact Values

Once you defined pricing relevant attributes, you can define the impact of the values each of the attributes will have.

This is how the interval based parameter should look like:

Note: We could define the “perceived value” attribute as “Direct Value”. In this case we could use the percent value directly in the pricing formula afterwards.

Create Pricing Formula

Together with the reference price and the pricing impact values, you can define the pricing formula.

The defined pricing rule now does the following:

  • Takes the price of the reference product (e.g. 10 €).

  • Looks up the Pricing relevant attributes (ProductLifecycle = growth, PerceivedValue = 70%).

  • Converts the attributes to their values ProductLifecycle[growth] = 1.2 | PerveivedValue[70%] = 2.

  • Calculates the price: BasePrice * ProductLifecycle + PerceivedValue = 10 € * 1.1 + 2 € = 13 €

 

Advanced Cost

We added support for advanced cost type definition and selection. You can now define different cost types and decide on granular level what cost type should be used in your calculations.