Utility of Agreements & Promotions

Companies may offer different promotions for several reasons, for example, to keep the loyalty of existing customers, to attract new customers to the business, to move old products out of inventory, for special marketing campaigns, among others.

Managing different types of promotions can be very tedious and difficult. Handling the different types of discount calculations and contracts can be time-consuming. Additionally, a lack of a proper approval or supervision process can be risky during our negotiations.

Pricefx offers the right functionality to create, maintain and track your promotions and discounts and their impact on your pricing, revenue, and margin.

Pricefx Help with Promotions Management

The Agreements & Promotions capability offers a range of features to support your business, including the management of discounts at different customer/product levels, the setting and rollout of price promotions and campaigns, and the calculation of net prices in connection with ERP backend system structures. Additionally, it enables the calculation and setup of various special price conditions, the establishment of a transparent and manageable discount system for sales activities on local and global levels, and access to analytics on discount impacts and margin leakages. There are two common ways of setting up agreements & promotions: Framework and Individual approaches.

Typical Business Scenarios

Agreements & Promotions can be used for a variety of scenarios. This includes providing regional and seasonal discounts for different customer segments, offering standard discounts for a specific product group that should always be added for volume purchases above a certain number of units, ensuring that the subsidiaries of our umbrella customer automatically receive the negotiated discounts, and limiting the use of discounts that impact margins and profitability.

Promotions Key Functionality

The scope of the Agreements & Promotions functionality includes the ability to manage condition term types using logic with predefined elements/parameters, create and maintain agreements, perform agreement calculations, execute approval workflows, manage and track discount records, and utilize agreement and promotion insights in other Pricefx functionalities. Here’s a faster view of the key capabilities.

• Manage condition term types using logic with predefined elements/parameters

• Create and maintain agreements

• Perform agreement calculations

• Execute approval workflows

• Manage and track discount records

• Use agreement and promotion insights in other Pricefx functionalities

Condition Types

There are different ways of calculating your discounts in the agreements, they are represented as Conditions Types in Pricefx. Each discount type will have associated a pricing logic to perform the correct calculation.

Agreement Creation

The first step in the Promotions process is the creation of the Agreement, which will be linked on the condition type previously defined. You can have as many agreements as your business requires.

Price Records

When your discounts are approved, a price record is created for each promotion agreement. They are displayed in the Price Records section:

Mass Updates

Using Agreements & Promotions enables default discount calculations to update agreement promotions with new changes, automatic discount input updates, mass submission of promotion agreements, promotion updates selection by user-defined generic filters (draft/approved), and background job scheduling for mass processing via Calculation Flow.

Where to Start with Promotions

Pricefx offers predefined algorithm logic to perform any type of promotion agreement calculations. You just need to provide the following information:

• Product master data

• Customer master data

• Extensions and attributes

• Sales transactions

• Forecasting

• Competition

• Historical

• Condition types - discounts