Price Setting
The Price Setting module supports, in the broadest sense, price policy definition, setup of price guidelines, and calculations and simulations of gross, special and net prices (including algorithmic optimization), as well as rule‑based or manual approval of price calculation results.
You can define here an unlimited number of calculation and simulation logics based on cost, market, competition, product attributes, value perception or any mix of those. The definition is done directly in the user interface and is based on a library of functions and commands. These logics allow you execute:
Static, calculated or manually set price list (i.e., periodic price lists).
Live price grids for frequent, dynamic price re-calculations and updates (i.e., online retail etc.).
Product price, quote and deal simulations.
Price calculations based on bills of material, bundles, sets, kits etc.
Segmentation and algorithmic price optimization.
Required Data and Master Data
The Price Setting module focuses on price calculation (list prices, customer‑specific prices, net prices, etc.) with all related rules, guidelines and price elements (for example margins and discounts). To support this, the following data is required and is managed in Master Data:
Customer master data (only if you do customer specific pricing)
The data is managed in the Master Data section.
The following areas can be managed in the Price Setting module:
You can watch the Price Setting tutorial videos that will walk you through the basic Price Setting functionality.
Advanced users and admins can also refer to the Developer Knowledge Base.
Business Overview
Price Setting helps speed up mass price updates that typically keep pricing teams busy for weeks, leading to slow response to changes in cost, competition and demand. It also helps address reduced profit margins resulting from uncontrolled and inconsistent discounting practices. In Price Setting you can easily manage increasingly complex pricing strategies, rules and guidelines.
Typical User Scenarios for Solving Challenges
Price Setting supports common business scenarios such as:
Setting up rules for price calculation based on different data, parameters and segmentation (for example, region, customer type, product type).
Automated price list creation based on defined rules.
Automated recalculation when key data changes (competition, cost, stock, market index, etc.).
Approval workflows and approval thresholds for final prices that are not aligned with company targets.
Price Setting Key Functionality
From a business perspective, the Price Builder in Price Setting contains three main sections to explore:
Price Lists
Live Price Grids (LPGs)
Simulations
These map directly to how you configure your calculation logics and workflows in the platform.
Price Lists
Business Overview
Price Lists are typically used where prices do not change very frequently and revisions are created on a quarterly or half‑yearly basis. They are also used to create different price lists by region, product or customer, and are primarily used by B2B businesses.
How It Works
A Price List is a set of products with a calculated result price. The result price is calculated based on a logic that contains a set of price calculation rules. All information used in the logic to calculate results is displayed in a table format and can be filtered.
Approval behavior:
A Price List can be automatically approved if approval rules are met.
If automatic approval is not possible, additional approval steps can be required.
Once a Price List has been approved, it can no longer be modified; if input data changes, the pricing manager must create a revision.
Typical Business Scenarios
Distributor price reviews – Quarterly reviews of distributor prices where price lists have a target and end date. Once the revision process is finished, old price lists are superseded by new ones that are then sent to distributors.
Country‑ and group‑specific pricing – Reselling products to other businesses with prices calculated depending on country and product group, requiring different price lists for different countries that are updated on a yearly basis.
Live Price Grids (LPGs)
Business Overview
Live Price Grids (LPGs) are typically used when a large number of products must be priced and prices need to be updated frequently. Companies that pursue dynamic pricing strategies usually work with LPGs, and they are common in mixed B2B/B2C environments.
How It Works
A Live Price Grid has a logic (set of rules) that defines how prices are calculated; outputs can be displayed in tabular form, similarly to Price Lists. The working principle is very similar to Price Lists, with key differences:
Prices can be approved directly in the LPG.
Prices can be manually overwritten where needed.
Prices can be automatically approved based on a set of rules; items that are not verified for automatic approval are sent for manual revision by the pricing manager.
Typical Business Scenarios
Online dynamic pricing – A company selling products online and orienting its pricing based on competition price, inventory and product life cycle, where separate items receiving new data during a certain period need their price recalculated.
Index‑ and competition‑driven B2B pricing – In B2B settings where competition data or changing market index data is applied and directly affects pricing.
Simulations
Business Overview
When pricing managers want to see the impact of changes (such as target margin changes) on final prices before modifying existing setups, they work with Simulations. This functional area allows you to use existing Price Lists or Live Price Grids to simulate changes, which are then highlighted in dedicated columns within the simulated list or grid.
How It Works
To create a Simulation, you need:
An approved Price List or Live Price Grid as a base.
Changed input data (for example, a table with simulation data) that is taken into account by the calculation rules.
Once the simulated Price List or grid has been calculated, the pricing manager can review delta columns and analyze the impact of the changes.
Typical Business Scenario
Pre‑change impact analysis – Product or customer price adjustments need to be made, and you want to see the impact on the resulting price before changing or reviewing existing price lists.
See Also
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Pricefx version 15.2.0