Overview of Special Pricing Authorization

In some cases, a distributor may need to apply for a special price below the usual book price for a component, in order to protect its margin.

Special pricing authorization is generally used in the high tech and industrial manufacturing industries. Siebel Partner Relationship Management (PRM) supports special pricing authorization as follows:

• The distributor negotiates with an OEM who is willing to offer a certain price.

• That price would reduce the distributor's margin below its typical level.

• The distributor applies for a lower book price to restore expected margin.

• The component supplier decides whether to approve the special price.

• If the special price is approved, the distributor ships components and then claims the difference between book price and authorized price.

• The supplier approves the claim and pays the distributor the difference between the book price and the special price.

For more information about special pricing authorization, see Siebel Partner Relationship Management Administration Guide