Pricing Management
Summarize
Summary of Pricing Management
The Pricing Management application is essential for any Sales and Order Management solution, allowing organizations to establish and optimize pricing strategies that enhance profitability while catering to customer needs. It empowers sales teams to generate quotes and orders quickly with accurate pricing.
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Key Features
- Price Lists: Define product and service prices. Agents use these lists to quickly access pricing when creating quotes and orders.
- Multiple Price Lists: Support for various price lists based on currency or customer accounts, enabling tailored pricing strategies.
- Pricing Methods: Set pricing as one-time fees or recurring fees, displayed in price list lines.
- Cost Books: Define unit costs for products, aiding profitability analysis during quoting.
- Price Adjustments: Adjust list prices based on product or non-product attributes, such as markdowns or overrides.
- Pricing Matrices: Implement complex pricing adjustments and manage default price list selection through decision rules.
- Pricing Extensions: Customize the pricing engine using integration points for external pricing data and logic control.
Key Outcomes
By utilizing Pricing Management, organizations can effectively manage pricing strategies, enabling sales agents to create competitive quotes and orders efficiently. This leads to better profitability analysis, enhanced customer satisfaction, and streamlined sales processes. Customers can expect improved flexibility in pricing, tailored offerings, and integration capabilities for a comprehensive pricing strategy.
The Pricing Management application is the foundation of any Sales and Order Management solution, enabling your organization to set, manage, and optimize pricing strategies that maximize profitability while meeting customer expectations. These pricing strategies empower your sales team by giving them the flexibility to generate quotes and orders with accurate and competitive pricing quickly.
Price lists
Price lists define the prices for products and services offered by your organization. Your agents use price lists to find product pricing quickly when creating quotes and capturing orders. Your pricing administrator or manager creates price lists and adds price list lines that define the list price for each of your product offerings.
- Support for multiple price lists
- Pricing Management supports multiple price lists, such as price lists based on currency or customer account. The initial, default price list that you create is based on the currency used, but you can change
the default price list used by your agents. For example, you can create account-based price lists that are tailored to the needs and preferences of a specific customer or provide pre-negotiated prices for them. You can set an
account-based price list as the default, which is then used by your agents when they create quotes or orders for that particular customer.
Figure 1. Example of account-based price list - Pricing methods
- The pricing method is set in product offerings and is displayed in price list lines. The pricing method is either a one-time fee or a recurring pricing fee with monthly and annual frequencies.
For details on configuring price lists and price list lines, see Create and publish a price list and Create a price list line.
Cost books
Cost books define the unit cost for product offerings. This information is used in the Quote Management application to provide sales agents with the unit cost, unit margin amount, and unit margin percentage for products in quotes. With this information, your sales agents can perform a simple profitability analysis by subtracting the cost of the product offer from the quoted selling price.
You create a cost book line to set the unit cost for each product offering. For details on configuring cost books and cost book lines, see Create and publish a cost book and Create a cost book line. For information on activating the cost book and cost margin features in Quote Management, see Install and configure Quote Management.
Price adjustments
- Product attributes: Define a price adjustment based on product characteristics, such as model or color. For more information, see Create and publish a product attribute-based pricing adjustment.
- Non-product attributes: Create a price adjustment based on characteristics that aren’t related to a product, such as shipping information or sales channel. For example, you can create a pricing adjustment for customers in a particular region. For details, see Create a non-product attribute pricing adjustment.
- Bundled products: Create price adjustments for product offerings in a bundled product. For example, you might want to specify a markdown amount for certain product offerings in the bundle, because the bundle provides discounted pricing. For more information, see Create pricing adjustments for bundled products.
Pricing matrices
- Price List Defaulting: Select the default price list to be used, such as the standard price list or an account-specific price list. For more information on configuring this price list matrix, see Control the default price list on transaction header or header line.
- Standard Price Adjustment: Apply an adjustment based on context variables that represent non-product attributes, such as shipping location or account. Pricing Management provides certain system-defined, non-product context variables that you can use in this matrix, but you can also create your own custom variables, for example, market segment. Your pricing administrator can work with your administrator to develop custom context variables that can be used in pricing matrixes. For details on configuring these adjustments, see Create a non-product attribute pricing adjustment. For more information on configuring custom context variables, see Create a pricing context variable and Map a custom context variable to a transaction entity.
- Configuration Component Price Adjustment: Adjust the price of a product when it's sold as part of a product bundle. For details, see Create pricing adjustments for bundled products.
Pricing extensions
- Select Price List (DefaultPriceListExtensionPoint): Change the selection logic for using the default price list on a quote or order header.
- Get Product List Price (ListPriceExtensionPoint): Get pricing directly from another data source or extend the current price list derivation.
- Apply Attribute Adjustments (AttributeAdjustmentExtensionPoint): Get attribute adjustments from another data source, such as product manufacturers, or extend the current adjustment derivation logic.
- Get Cost (CostExtensionPoint): Get the unit cost for a product offering directly from another data source or extend the current cost book derivation logic.
- Apply Pricing Adjustments (PricingAdjustmentsExtensionPoint): Get pricing adjustments for a product offering from another data source, or extend the pricing engine logic by not relying on the Standard Adjustment and Component Configuration Rule Matrices to get the adjustment values.