Business Scenario

We want to define different Pricing Strategies to be applied to a product portfolio. We can define up to 5 different strategies per segment. The segment can be part of a lookup key (or a complete lookup key).

On top of this, we want to define more generic Base Strategies. These will be applied before the defined strategies to ensure that there are general rules in price setting.

Accelerator Package as Solution

Configuration of Price Strategies

You can define Strategies in the “Strategy Selection” Price Parameter. Here is an example configuration.

Open

Product with [Food, Meatball, C] will lead to the following line:

Open

Product with [Food, Meatball, B] will translate to the Lookup Key [Food, Meatball, *].

All Strategies will be calculated and the result will be shown in the Prices popup in a LPG/PL. The first strategy which calculates a valid price will be the selected price for this product.

Optional: Configuration of Base Strategies

You can configure Base Strategies on top of the standard strategies. Base Strategies are also applied and shown together with prices of standard strategies. Base Strategies have higher priority than other strategies, so the result is added on top of the standard strategies.

The only difference between Base Strategies and Standard Strategies is that they are only shown when they return a price. So when some Base Strategies do not return a price, you don´t recognize it at all.

The idea of Base Strategies is to have some general pricing rules applied to the products. Candidates are, for example, Promotion Pricing and Kit Pricing. When you want to have Promotion Pricing as a general pricing rule for every product, you would have to add it to “Strategy Selection” for every segment as Prio #1 pricing rule. To cover this case more easily, you can add it to “Base Strategies”:

Furthermore, you can have the same lookup key concept in this parameter as in normal Strategy Selection. So, for example, you want to have Promotion Pricing as Base Strategy for every product and every “Food” Product should have “Kit Pricing” as a general pricing rule. Instead of putting this into the standard Strategy Selection Parameter, you can add it to Base Strategies:

To sum it up, the idea of “Base Strategies” is to add some general pricing behaviour on top of normal strategy selection. This is completely optional – it can be ignored or deleted from the configuration. But whenever Pricing Managers want to have some general pricing rules is place, there is a comfortable way to do it.

With the option to mark different strategies as not overridable, you can ensure that the general pricing rules are deployed without exception.