Pricing Strategy

A pricing strategy is a set of pricing rules that you set up to achieve a profitability goal for selling and pricing an item.

• The pricing strategy specifies the price, cost, discount, currency conversion, shipping rules, and return price that Pricing uses to help meet the pricing objective of the pricing strategy.

• The pricing objective is the goal of your pricing policies for a customer, such as to create interest about your items, increase sales volume, or maintain a market position that you already established.

  For example, create a pricing strategy according to competitor pricing, to sell at a loss so you can enter a market, to price an item differently for each pricing segment, or to price it high so that customers perceive it favorably.

• The pricing strategy references the prices and pricing policies that Pricing applies to help you accomplish the objective.

• You can group pricing rules in a pricing strategy to control pricing behavior.

• Add a price list, cost list, discount list, or currency conversion list that you haven't approved to a strategy, then approve the strategy. However, Pricing only uses approved lists at run time.

• Specify whether you can override the default value for the price list.

Currency

You can specify a default currency and specify whether you can override it when you create a sales order. You can override the default currency only with a currency that the pricing strategy references.

Behavior for repricing a sales order is different depending on when you set the currency.

Set Currency When You Create the Sales Order	Don't Set Currency When You Create The Sales Order
Order Management uses the original currency that you set on the order even if you change the currency on the pricing strategy in the Pricing Administration work area or directly on the sales order.	Order Management uses the currency that's currently defined on the pricing strategy in the Pricing Administration work area or that you set on the sales order.

For details about setting currency on a sales order, see Other Behavior on Sales Orders.