1. Administering Pricing
  2. Manage Pricing Strategies

Manage Pricing Strategies

Create a pricing strategy to achieve a profitability goal.

Summary of the Set Up

  1. Create the pricing strategy.

  2. Add lists to the pricing strategy.

Here are details about the pricing strategy that you set up in this topic.

  • Maximize profit.

  • Reference the Operations business unit of your Computer Service and Rentals customer.

  • Reference various lists in Pricing to set the price, cost, discount, shipping charge, and currency conversion.

This topic uses example values. You might need different values, depending on your business requirements.

Create the Pricing Strategy

  1. Go to the Pricing Administration work area, then click Tasks > Manage Pricing Strategy.

  2. On the Manage Pricing Strategy page, click Actions > Create.

  3. In the Create Pricing Strategy dialog, set the values, then click Save and Edit.

    Attribute

    Value

    Name

    Enter Corporate Pricing Strategy.

    Business Unit

    Computer Service and Rentals Operations.

    Default Currency

    USD.

    Select the currency that Pricing displays at run time for items that you associate with this pricing strategy.

    Default GL Conversion Type

    Leave empty.

    Select the currency conversion type that Pricing must use if it can't find the conversion list when it converts currency in the general ledger.

    Objective

    Profit Maximization.

    Set the Objective to help clarify the purpose of the strategy. This attribute doesn't affect pricing calculations.

    Allow Price List Override

    Leave empty.

    Allow you to select some other price list at run time.

    Add a check mark to this option only if you modify a pricing algorithm so it supports a price override. For details, see Override Base List Price.

    Allow Currency Override

    If you set Default Currency to USD, and if you.

    • Set the Allow Currency Override attribute to Yes, then Pricing uses USD by default, but also allows you to convert USD to GBP (Pound Sterling) or to EUR (Euro).

      If you change the currency, then Pricing uses the currency that the Order Entry Specialist selects when it calculates the price.

    • Import a source order that isn't already priced, and if the source order uses GBP or EUR, then Pricing will use GBP or EUR to price the source order regardless of how you set Default Currency or Allow Currency Override.

    If you don't set up a pricing strategy, then Pricing allows you to select USD, GBP, or EUR, and Pricing will use the currency that you select when it calculates the price.

Add Lists to the Pricing Strategy

Add the lists that this pricing strategy must reference, such as price lists, discount lists, and so on. You must create these lists before you can add them to this pricing strategy.

  1. Create the lists that the pricing strategy must reference.

    List Name

    Get Details

    Price List for Computer Service and Rentals

    Manage Price Lists

    Cost List for Standard Desktop

    Manage Cost Lists

    Discount List for Standard Desktop

    Manage Discount Lists

    Shipping Charge List for Standard Desktop

    Manage Shipping Charge Lists

    Currency Conversion List for Standard Desktop

    Manage Currency Conversion Lists

  2. On the Edit Pricing Strategy page, in the Pricing Rules tab, in the Segment Price Lists area, click Actions > Select and Add.

    Use each area in the Pricing Rules tab, such as Segment Price Lists, to add a price list.

  3. In the Select and Add dialog, search for Price List for Computer Service and Rentals, then click OK.

  4. Navigate to the Edit Price List page, then click Close Tab.

  5. On the Edit Pricing Strategy page, click Approve.

    Pricing sets the pricing strategy status to In Progress when you create a pricing strategy, by default. You must approve the pricing strategy so you can use it in other parts of Pricing Administration.

  6. In the Segment Price Lists area, in the Name column, click Price List for Computer Service and Rentals.

  7. On the Edit Price List page, click References, then verify that the Name displays Price List for Computer Service and Rentals.

    Pricing displays each pricing strategy that references this price list.

  8. Repeat steps 2 through 7 for each of the other lists you added in step 1.

    For example, to add Cost List for Standard Desktop, on the Edit Pricing Strategy page, click Costs Lists, add the cost list, navigate to the Edit Cost List page, click Close Tab, and so on.

    • You can add the same list to a pricing strategy more than one time, and you can assign a different time frame each time you add it, or you can add can add more than one list and set different time frames for them.

      For example, add a discount list that provides a 15% discount, and set the dates so its in effect from January through March the first time you add it, and in effect June through July the second time you add it.

    • If you add more than one list in an area of the Pricing Rules tab or Shipping Rules tab, then Pricing applies them according to the lowest number you set in the Precedence attribute.

      For example, assume you add two lists in the Segment Price Lists area. If you set the precedence for list x to 1, and precedence for list y to 2, then Pricing applies list x first, and then list y.

  9. Assign the pricing strategy.

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