Pricing Overrides

Overview

Sometimes you may want to establish a pricing methodology that goes beyond the standard 6 price columns that are offered in Savance Enterprise. Below we will outline a recommended method to accomplish this task leveraging account groups, inventory groups, and pricing overrides to expand the flexibility of price classes to accommodate any number of pricing options.

Assumptions

• Your standard pricing methodology leverages a cost-plus approach where you use our CVal1-CVal6 values as multipliers against Cost (Cost*CVal) to derive your column 1-6 pricing

• All the items you are leveraging pricing overrides for already have been assigned to a relevant pricing profile

• All accounts you are leveraging pricing overrides for have a price class (1-6) assigned

Use Case

Oftentimes, distributors have multiple groups of similar customers that they want to give preferential or aggressive pricing in an effort to remain competitive or increase margin. Some examples include:

• Residential

• Commercial

• Large OEM

• Small OEM

• Industrial

• Large Contractor

• Small Contractor

Similarly, distributors may want to price small or large groups of like items differently depending on what group of customers they are selling to. Some examples include:

• Residential Lighting

• Industrial Lighting

• Relays

• Commodities

• Automation equipment

The best way to be profitable and remain competitive is to strategically price certain groups of items to certain groups of accounts. This method goes beyond the standard abilities of a 6 pricing class system and allows you to capture small amounts of additional margin that make a significant difference over time.

Our approach to increase profit and remain competitive on certain products for specific customers will be to override the cost-plus multipliers that are set up in your base pricing profiles with what we call Pricing Overrides.

Assigning Pricing Overrides

• Create the groups of accounts for which you would like to manage ‘Pricing Overrides’ for:

Accounts => Account Groups

• Add an account group and assign customers to the group.

  • Click here to add a new group.

  • Click here to add a new account.

• Now create the item groups you would like to manage pricing for:

**Inventory -> Inventory Manager => Items Group Manager
**

• Create a new Group

• Select your dynamic group criteria here. Typically you will use some sort of class designation or possibly a list of Manufacturers. You will either define the criteria yourself or may be able to get some intelligent/pre-defined lists from a data provider.

• The final step is to create the pricing override that will control the multipliers to use in this certain Account Group/Item Group scenario:

**Inventory -> Pricing Manager -> Pricing Rules Manager -> Pricing Override
**

• Add a Pricing Override

• Choose The Account/Account Group & Inventory Group you would like to enforce the override on

• Now add your override multipliers in CVal1-CVal6 columns

• You have now successfully added a pricing override using unique multipliers for a specific group of customers and items. The flow-chart below helps visualize this process and the difference between pricing an item for a customer with and without an available override.

Conclusion

You will likely have at least one price override per customer group and can have multiple if you need overrides on multiple item groups. Using this method to override standard pricing profile-driven column pricing will give you infinite pricing options on a per item and per customer basis.