6 Pricing

The Pricing tab enables you to create or edit prices through Price Promotions, Price Changes, and Discount Rule options. Price promotions are temporary price reductions for a set period of time while price changes are permanent changes in the price of an item or group of items. Discount rules are used to apply price promotions to combinations of items or multiple items for a temporary time period.

Note: If pricing information is downloaded through the Data Import (DIMP) subsystem, any changes made through the Back Office Pricing tab will be overridden the next time pricing information is downloaded. If a retailer is integrated with a price management application, it is assumed that the retailer is using the price management application, and not the features of Back Office, to set up items and manage pricing. Oracle Retail does not support using Back Office to manage items and pricing when integrated with a price management application. If a retailer is integrated with Siebel, it is assumed that the retailer is using Siebel, and not the features of Back Office, to manage pricing for order line items. Oracle Retail does not support using Back Office to manage pricing for order line items when integrated with Siebel.

The following topics are discussed:

• "Pricing Groups"

• "Price Promotions"

• "Price Changes"

• "Discount Rules"

Pricing Groups

Pricing groups enable a retailer to define groups of customers who receive selected discounts and price promotions. When a customer is assigned a pricing group, the customer is entitled to receive the price promotions and discounts currently in effect for that pricing group. A customer can only be assigned one pricing group.

A pricing group can be associated with multiple price promotions and discount rules. But a price promotion or discount rule can only be associated with one pricing group. Pricing groups are downloaded through the DIMP subsystem.

Price Promotions

Price promotions are temporary price reductions for a set period of time. You can search for, create, and edit price promotions. When creating a price promotion, you enter the name and description of the promotion, the associated pricing group, the starting and ending dates, the type of price reduction, and the amount of the reduction. You can then add items included in the price promotion. You can also search for a price promotion, edit summary information, change promotional prices, and add or remove items from the promotion.

Searching for Price Promotions

The Price Promotion Search screen enables you to search for and edit pending price promotions.

To search for price promotions:

1. Click the Pricing tab.

2. Click the Price Promotion subtab.

3. Click the Search left navigation link. The Price Promotion Search screen is displayed.

4. Enter the search criteria and click Search. If no criteria is entered, the search is done for all pending promotions. The list of promotions that match the search criteria is displayed in the Results section of the screen.

   Figure 6-1 Price Promotion Search Screen

   
   

5. To display details of a promotion, select the promotion ID from the displayed list. The Price Promotion Detail screen is displayed. See "Adding or Editing a Price Promotion".

Adding a Price Promotion

The add promotion function enables you to create a new price promotion.

To add a price promotion:

1. Click the Pricing tab.

2. Click the Price Promotion subtab.

3. Click the Add left navigation link. The Price Promotion Detail screen is displayed. See "Adding or Editing a Price Promotion".

Adding or Editing a Price Promotion

You can edit an existing price promotion or a newly created price promotion on the Price Promotion Detail screen.

Figure 6-2 Price Promotion Detail Screen

To edit or add a price promotion:

1. Enter the required fields. Required fields include promotion name, start date, end date, promotion type, priority, item number, start time, end time, and amount.

   
   

   Note: Enter a numerical value for promotion priority. The higher the number, the higher the priority. For example, 99 is a higher priority than 1.

   
   

2. Enter any optional fields. Description and pricing group are optional fields.

   To not associate the discount rule with a pricing group, select None.

3. To add an item to the promotion, enter the item number and click Add. The added item is displayed on the screen. A promotional price is calculated for the item.

   • Select the template type.

   • To change the promotional price, click the price. The Price Promotion Item Detail screen is displayed. See "Editing the Item Price for a Price Promotion".

4. To save the promotion, click Save. The Price Promotion Save Confirmation screen is displayed. The price promotion ID is shown on this screen.

5. Click Enter. The Price Promotion Search screen is displayed.

Editing the Item Price for a Price Promotion

On the Price Promotion Item Detail screen, you can change the new regular price of an item within a price promotion.

To change the price of an item:

1. Click the current price of the item you wish to change. The Price Promotion Item Detail screen is displayed.

   Figure 6-3 Price Promotion Item Detail Screen

   
   

2. Enter a new selling price.

3. To save the new price, click Save. The Price Promotion Item Detail screen is displayed. You can select another price to change.

Price Changes

The price change function enables you to create and edit a permanent price change for a group of items or to search for a pending price change based on specific criteria. You can search for price changes, add a price change, or edit the details of an existing or new price change.

Searching for Price Changes

On the Price Change Search screen, you can search for pending price changes.

To search for a price change:

1. Click the Pricing tab.

2. Click the Price Change subtab.

3. Click the Search left navigation link. The Price Change Search screen is displayed.

4. Enter the search criteria. If no criteria is entered, the search is done for all pending price changes.

5. Click Search. The list of price changes that match the search criteria is displayed in the Results section of the screen.

   Figure 6-4 Price Change Search Screen

   
   

6. To display details of a price change, select the price change ID from the displayed list. The Price Change Detail screen is displayed. See "Adding or Editing a Price Change".

Adding or Editing a Price Change

The Price Change Detail screen enables you to edit price change details, add a new item to a price change, or change the price of an item within a price change.

Figure 6-5 Price Change Detail Screen

To edit or add a price change:

1. Edit or enter the details for the price change:

   • Select a price change type. For a price change that takes effect at a later date, click Future. For a price change that takes effect immediately, click Immediate.

   • Type in a new price change description.

   • Enter a new effective date.

   • Remove an item from the price change. Select the check box next to the item and click Remove.

   • Add an item to the price change. Enter an item number and click Add. The new item appears at the bottom of the screen.

   • Change the price of an existing item. See "Editing the Item Price for a Price Change".

   • Change the template type for the item.

2. To save the price change, click Save. The Price Change Save Confirmation screen is displayed. The price change ID is shown on this screen.

3. Click Enter. The Price Change Search screen is displayed.

Editing the Item Price for a Price Change

On the Price Change Item Detail screen, you can change the new regular price of an item within a price change.

To change the price of an item:

1. Click the current price of the item you wish to change. The Price Change Item Detail screen is displayed.

   Figure 6-6 Price Change Item Detail Screen

   
   

2. Enter a new selling price.

3. To save the new price, click Save. The Price Change Detail screen is displayed. You can select another price to change.

Adding a Price Change

To add a price change:

1. Click the Pricing tab.

2. Click the Price Change subtab.

3. Click the Add left navigation link. The Price Change Detail screen is displayed.

4. Enter the price change information. Refer to "Adding or Editing a Price Change".

Discount Rules

Discount rules are created to temporarily reduce the price of an item or group of items. The discount rules apply to multiples or combinations of items. You can search for, create, edit, or end discount rules.

Discount Rules Terminology

Table 6-1 provides a list of terms used in the discount rules subtab.

Table 6-1 Terminology

Term	Definition
Source	Product that must be purchased before the target is eligible for a discount
Target	Product that is eligible for a discount once the source is met
Item	A specific product (for example, Levi's 501 Jeans)
Class	A group of items whose members share an attribute (for example, jeans item list)
Department	A large collection of items that share a common denominator (for example, Women's Apparel)

Searching for Discount Rules

On the Discount Rule Search screen, you can search for existing discount rules by discount rule ID, name, type, start and end dates, source, or target.

1. Click the Pricing tab.

2. Click the Discount Rule subtab.

3. Click the Search left navigation link. The Discount Rule Search screen is displayed.

4. Enter the search criteria. The rule type displayed in the Discount Rule Type menu is used for the search.

   To search for all discount rule types, select the blank entry in the menu.

5. You can choose how to sort search results. If you do not choose to sort results, the results are sorted by the default criteria.

   • Select which criteria to sort by from the menu.

   • To include expired discount rules, click Yes. Otherwise, click No.

6. To search for a discount rule, click Search. To clear the search criteria, click Clear Search. The list of discount rules that match the search criteria is displayed in the Results section of the screen.

   Figure 6-7 Discount Rule Search Screen

   
   

7. To display details of a discount rule, select the discount rule ID from the displayed list. The Discount Rule Detail screen is displayed. See "Editing a Discount Rule".

Adding Discount Rules

On the Discount Rule Add screen, you can add new discount rules to the database.

To add a discount rule:

1. Click the Pricing tab.

2. Click the Discount Rule subtab.

3. Click the Add left navigation link. The Discount Rule Add screen is displayed.

   Figure 6-8 Discount Rule Add Screen

   
   

4. Enter the discount rule name. This is a free text field to describe the discount rule.

5. Select the discount rule type from the menu. See "Discount Rule Types" for examples and definitions of the different discount rules.

6. Select the source and target from the menus. You can select item, class, or department for the source and target.

   
   

   Note: The availability of the source and target fields depends on the type of rule you are adding.

   
   

7. Select the transaction level and store level:

   • The store level indicates if the discount rule applies to all the items in the store. To apply the rule to all items in the store, select Yes.

   • The transaction level indicates if the rule is applicable at the transaction level or item level. To apply the rule at the transaction level, select Yes.

   
   

   Note: These fields are displayed only for the type of rules that are applicable at the transaction level.

   
   

8. Select a pricing group. To not associate the discount rule with a pricing group, select None.

9. Enter start and end dates or select from the calendar next to the field box.

10. Enter starting and ending times.

11. Click Next. The Discount Rule Detail screen is displayed. See "Editing a Discount Rule".

    
    

    Note: If not all fields are entered, you receive an error message asking you to complete all fields before continuing.

    
    

Editing a Discount Rule

On the Discount Rule Detail screen, you can view, edit, or end an existing discount rule. If the discount rule is pending or expired, you can edit the name of the rule, the start and end dates, the start and end times, the limit and threshold amounts, quantity, items, classes, and departments eligible for specific group discounts. If the rule is active, you can only edit the end date and time.

To edit a discount rule:

1. On the Discount Rule Search screen, click the Discount Rule ID. The Discount Rule Detail screen is displayed.

   Figure 6-9 Discount Rule Detail Screen

   
   

   Table 6-2 describes the fields on this screen.

   Table 6-2 Discount Rule Detail Screen Fields

   Field	Description
   Discount Rule ID	Identifier of this discount rule.
   Discount Rule Name	Name for this discount rule.
   Discount Rule Type	Type of discount for this rule. The variables used the discount rule type are described in Table 6-3.
   Transaction Level	Indicates if the discount rule is applied at the transaction level or item level. If this field is set to Yes, the discount is applied at the transaction level. Note: This field is only displayed for discount rules that are applicable at the transaction level.
   Store Level	Indicates if the discount rule applies to all the items in the store. If this field is set to Yes, the discount rule applies to all items in the store. Note: This field is only displayed for discount rules that are applicable at the transaction level.
   Pricing Group	The discount rule is associated with this pricing group. If this field is None, the discount rule is not associated with any pricing group.
   Start Date and Start Time	The date and time when this discount rule goes into effect.
   End Date and End Time	The date and time when this discount rule expires.
   Source Threshold	Minimum price allowed for a source to be part of this rule.
   Source Limit	Maximum price allowed for a source to be part of this rule.
   Target Threshold	Minimum price allowed for a target to be part of this rule.
   Target Limit	Maximum price allowed for a target to be part of this rule.
   Percent Off, Dollar Off, Fixed Price	Discount percentage or amount applied to the target.
   Number of Times per Transaction	Maximum number of times this rule can be applied in a transaction.
   Accounting Method	Determines if this rule is described as a discount or markdown for accounting purposes.
   Allow Source to Repeat	When set to Yes, this rule is triggered if either of the following conditions are met: For ALL qualifier type rules, when the same item is repeated. For ANY qualifier type rules, when there are multiple sources, any item from any source is repeated, and the total quantity criteria is met. When set to No, this rule is not triggered when the same item is repeated.
   Deal Distribution	If set to Source, the discount amount is applied only to the target. If set to Source Target, the discount amount is divided between the source and target.
   Add Source and Target fields
   Source Item Number	SKU number assigned to the source.
   Quantity	Quantity of the source that must be purchased to get the discount on the target.
   Target Item Number	SKU number assigned to the target.
   Quantity	Quantity of the target that must be purchased to get the discount.
   Sources fields
   Include ANY Source(s)	If selected, the customer must purchase the minimum number of the source items to qualify for the discount on the target items. Choose the minimum number that must be purchased from the menu.
   Include ALL Sources	If selected, the customer must purchase all of the source items to qualify for the discount on the target items.
   Select to Remove	A selected checked box indicates the source has been selected to be removed from the rule.
   Item Number	SKU number assigned to the source.
   Description	Description of the source item.
   Quantity	Quantity of this item that must be purchased to qualify for the discount on the target.
   Price	Price of the item.
   Targets fields
   Include ANY Target(s)	If selected, the customer must purchase the minimum number of the target items to qualify for the discount. Choose the minimum number that must be purchased from the menu.
   Include ALL Targets	If selected, the customer must purchase all of the target items to qualify for the discount.
   Select to Remove	A selected checked box indicates the target has been selected to be removed from the rule.
   Item Number	SKU number assigned to the target.
   Description	Description of the target item.
   Quantity	Quantity of this item that must be purchased to get the discount.
   Price	Price of the item without the discount applied.

   
   

   Table 6-3 describes the variables used in the discount rules.

   Table 6-3 Discount Rule Definitions

   Letter	Name	Description
   X	Source	Product that must be purchased before the target is eligible for a discount.
   Y	Target	Product eligible for a discount once source is met.
   Z	Price or Discount	Discount amount or percentage applied to the target.
   N	Quantity or Amount	Number or amount of source that must be purchased to receive a discount.

   
   
   
   

   Note: X(source) and Y(target) can be the same item.

   
   

2. Change the rule information.

3. Add source and target items to the rule.

   • To add a source, enter the item number and quantity and click Add. The item is added to the Sources list.

   • To add a target, enter the item number and quantity and click Add. The item is added to the Targets list.

4. Change the list of source and target items. For information on the ANY and ALL options, see "ANY and ALL Options for Sources and Targets".

   • Change the number of source items that must be purchased to qualify for the discount on the target items.

     • If a minimum number of the source items must be purchased, select Include ANY Source(s) and select the minimum number of items from the menu.

     • If all source items must be purchased, select Include ALL Sources.

   • Change the number of target items that must be purchased to qualify for the discount.

     • If a minimum number of the target items must be purchased, select Include ANY Target(s) and select the minimum number of items from the menu.

     • If all target items must be purchased, select Include ALL Targets.

   • To remove a source or target, select the check box in the Select to Remove column. Click Remove.

5. To end a discount rule, edit the end date and time to the current date and time.

6. To save the discount rule, click Save. The Discount Rule Save Confirmation screen is displayed. The discount rule ID is shown on this screen.

7. Click Enter. The Discount Rule Search screen is displayed.

ANY and ALL Options for Sources and Targets

For the Source and Target items defined for a discount rule, the minimum number of items that must be purchased for the source and the target can be selected on the Discount Rule Detail screen. In addition, you can choose if ANY or ALL sources and targets must be included to invoke the discount rule. This feature is applicable to items, classes, and departments.

The following examples illustrate two discount rules.

Example 1

A class is used for the source and target. There is more than one source.

• Discount Rule: Buy any two pair of women's jeans or women's shorts, get a pair of socks for $1 off.

To implement this discount rule:

1. For the sources, enter the item numbers for the class of women's jeans and the class of women's shorts. Enter 2 for the quantity of each.

2. Select the Include ANY Source(s) option and choose 1 from the menu. The 1 indicates that the customer needs to buy only one of the two classes (jeans or shorts).

3. For the target, enter the item number for the class for pairs of socks. Enter 1 for the quantity.

4. Select the Include ALL Targets option.

Example 2

An item is used for the source and target. There is more than one source.

• Discount Rule: Buy a camera and a case, get a roll of film for $0.

To implement this discount rule:

1. For the sources, enter the item number for the camera and the item number for the case. Enter 1 for the quantity for each.

2. Select the Include ALL Sources option to indicate the customer must purchase the camera and the case before the discount rule will be invoked.

3. For the target, enter the item number for the roll of film. Enter 1 for the quantity.

4. Select the Include ALL Targets option.

Sorting Algorithm

When a discount rule contains the ANY option and the number of available sources and targets exceed the ANY quantity, the system must determine how to sort the items in order to know which items will participate in the discount rule. The sorting algorithm varies based on the discount rule and whether or not the items participate as both sources and targets within that rule, that is, whether the sources are discounted.

The following sorting algorithm is used:

1. If using one of the following rules, the system will always sort least expensive to most expensive:

   • Buy N of X, get lowest priced X at Z% off

   • Buy N of X, get Y at Z% off

   • Buy N of X, get Y at Z$

   • Buy $N or more of X, get Y at Z% off

   • Buy $N or more of X, get Y at Z$

2. When the same items participate as both sources and targets, that is, whether the sources will receive the discount, the system will sort the items from most expensive to least expensive to determine which should participate in the discount rule.

3. When the same items do not participate as both sources and targets, the system will sort the items from least expensive to most expensive and choose the first options until the ANY quantity is met.

How a Discount Rule is Applied to Items Included in a Kit

The application of a discount rule to an item is determined by the following:

• When an item is added to a transaction, the Discountable feature of the item is checked. If Discountable is set to Yes, the item is eligible for the discount.

• When a kit is added to a transaction, the discount rule is not applied to any items in the kit regardless of how the Discountable feature is set.

The following examples illustrate these two requirements.

• Items 907, 908, and 910 have Discountable set to Yes, are included in a discount rule, and are included in a kit. The kit has Discountable set to Yes. If these items are added individually to a transaction, the discount rule is applied.

• Items 907, 908, and 910 have Discountable set to Yes, are included in a discount rule, and are included in a kit. The kit has Discountable set to No. If these items are added individually to a transaction, the discount rule is applied.

• Items 907, 908, and 910 have Discountable set to Yes, are included in a discount rule, and are included in a kit. The kit has Discountable set to Yes. If the kit is added to a transaction, the discount rule is not applied.

• Items 907, 908, and 910 have Discountable set to Yes, are included in a discount rule, and are included in a kit. The kit has Discountable set to No. If the kit is added to a transaction, the discount rule is not applied.

• Items 907, 908, and 910 have Discountable set to No, are included in a discount rule, and are included in a kit. The kit has Discountable set to Yes. If these items are added individually to a transaction, the discount rule is not applied.

• Items 907, 908, and 910 have Discountable set to No, are included in a discount rule, and are included in a kit. The kit has Discountable set to Yes. If the kit is added to a transaction, the discount rule is not applied.

Discount Rule Types

Table 6-4 lists examples of discount rules.

Table 6-4 Discount Rule Examples

Discount Rule	Example
Buy N of X, get Y at Z% off	Buy 2 (=N) pair of jeans (=X), get a sweater (=Y) at 50% (=Z) off.
Buy N of X, get Y at Z$ off	Buy 1 (=N) suit coat (=X), get a dress shirt (=Y) for $10 (=Z) off.
Buy N of X, get Y for Z$	Buy 2 (=N) shirts (=X), get a pair of pants (=Y) for $10 (=Z).
Buy N of X, get highest priced X at Z% off	Buy 3 (=N) items (=X), get 10% (=Z) off the highest priced item. X can be N of the same or different items. Item A is $19.99, item B is 15.99, item C is 10.00. Since item A is the highest priced item, $1.99 (10% of $19.99) is taken off the total.
Buy N of X, get lowest priced X at Z% off	Buy 3 (=N) items (=X), get 10% (=Z) off the lowest priced item. X can be N of the same or different items. Item A is $19.99, item B is $15.99, item C is $10.00. Since item C is the lowest priced item, $1.00 (10% off $10.00) is taken off the total.
Buy $N or more of X, get item Y at Z$ off	Buy $20 (=N) of Sporting Goods (=X), get $10 (=Z) off a basketball item (=Y).
Buy $N or more of X, get Y at Z% off	Buy $20 (=N) or more of Sporting goods (=X), get 10% (=Z) off a baseball cap (=Y).
Buy $N or more of X, get Y for Z$	Buy $500 (=N) or more of jewelry (=X), get a pair of earrings (=Y) for $25 (=Z).
Buy N of X for Z% off	Buy 2 (=N) pair of jeans (=X) for 10% (=Z) off.
Buy N of X for a specified amount off	Buy 2 (=N) pair of jeans (=X), get $10 (=Z) off.
Buy N of X, get that purchase for a specified price	Buy 2 (=N) pair of jeans (=X), get purchase at $10 (=Z).
Buy N or more of X for Z% off	Buy 5 (=N) or more of Sporting goods (=X) for 10% (=Z) off.
Buy N or more of X for (Z) a specified amount each	Buy 5 (=N) or more of Sporting goods (=X), get each item at $10 (=Z).
Buy a specified total amount (N) or more of X, for a specified amount off	Buy $50 (=N) or more of Sporting goods (=X), get $10 (=Z) off.
Buy a specified total amount (N) or more of X, get Z% off	Buy $50 (=N) or more of Sporting goods (=X), get 10% (=Z) off.

Group Discounts

Group discounts allow the customer to purchase a specified quantity of a particular item (X) to receive a discount on that item.

Table 6-5 describes the variables used in the group discount examples in Table 6-6.

Table 6-5 Group Discount Definitions

Letter	Name	Description
N	Quantity	Number or amount of X purchased to be eligible for discount.
X	Source/Target	Item or group of items that must be purchased to receive discount on that item or group of items.
Z	Discount	Discount applied to X.

Note: Prices for X can be different.

Table 6-6 lists examples of group discounts.

Table 6-6 Group Discount Examples

Group Discount	Examples
Buy N of X for Z$	Buy 2 (=N) pair of jeans (=X), get them for $50 (=Z).
Buy N of X for Z% off	Buy 3 (=N) pair of jeans (=X), get 35% (=Z) off the total.
Buy N of X for Z$ off	Buy 3 (=N) pair of jeans (=X), get $25 (=Z) off the total.
Buy N or more of X for Z% off	Buy 3 (=N) or more pairs of jeans (=X), get 35% (=Z) off the total.
Buy N or more of X for Z$ each	Buy 3 (=N) or more pairs of jeans (=X), get them for $25 (=Z).

Table 6-7 lists examples of transaction level discounts.

Table 6-7 Transaction Level Discount Examples

Transaction Level Discount	Examples
Buy N of X for Z% off	Buy 3 (=N) pair of jeans (=X), get 35% (=Z) off the transaction total.
Buy N of X for Z$ off	Buy 3 (=N) pair of jeans (=X), get $25 (=Z) off the transaction total.
Buy $N or more of X get Z$ off	Buy $50 (=N) or more of Sporting goods (=X), get $10 (=Z) off the transaction total.
Buy $N or more of X get Z% off	Buy $100 (=N) or more of Sporting goods (=X), get 10% (=Z) off the transaction total.

Table 6-8 lists examples of store level discounts.

Table 6-8 Store Level Discount Examples

Store Level Discount	Examples
Buy N of X for Z% off	Buy 3 (=N) of any item in the store (=X), get 35% (=Z) off the transaction total.
Buy N of X for Z$ off	Buy 3 (=N) of any item in the store (=X), get $25 (=Z) off the transaction total.
Buy $N or more of X get Z$ off	Buy $50 (=N) or more of any items in the store (=X), get $10 (=Z) off the transaction total.
Buy $N or more of X get Z% off	Buy $100 (=N) or more of any items in the store (=X), get 10% (=Z) off the transaction total.