Standalone Selling Price Profiles

Standalone selling price profiles are user-configurable profiles that combine all the key pricing attributes into one place.

Use standalone selling price profiles to create or calculate standalone selling prices.

You can have as many standalone selling price profiles as your business requires. A best practice is to set up standalone selling price profiles by like products and services. For example, you can create a standalone selling price profile for each of these types of products and services:

• Telecommunication machines
• Devices
• Services
• Maintenance

Header Information

The header information in standalone selling price profiles includes:

• Name and Description: Choose a name and description that accurately represents the types of items for this standalone selling price profile.
• SSP Representation:
• • Unit price: Standalone selling price is represented as an absolute value, the price at which the good or service is normally sold in a separate and standalone sale.
  • Discount percentage of unit list price: Standalone selling price is based on the standard price list for your goods and services and a standard discount policy based on one of the following: volume purchased, deal size, customer category, any other factor relevant to your business.
  • Gross margin percentage: Standalone selling price is represented as a markup percentage on the cost amount for the item.
  • Percentage of base unit price: Standalone selling price is defined as a percentage of the selling price of a related product. The selling price of the related product is the base price.
• Pricing Dimension Assignment: Select the pricing dimension assignment appropriate for the type of standalone selling price profile you're defining.

• Cover effective period: Specify whether transaction periods in the effective period are to be included. Used for the automatic calculation of observed standalone selling prices.

After you select the pricing dimension assignment for the standalone selling price profile, the details of the document types and pricing dimension segments that you specified in the Manage Pricing Dimension Assignments for Revenue Management page are populated automatically in the Segment Assignment section.

Default Assignment Attributes

The Default Assignment Attributes are mainly used for the automatic calculation of observed standalone selling prices. Each item has price attributes that default from the Default Assignment Attributes. These attributes control:

• Minimum standalone sales: Assesses whether the observed standalone selling price calculated by the application is valid, based on whether the minimum number of standalone sales is met. Revenue Management identifies an observed standalone selling price regardless of whether the minimum number of standalone sales exist. The application assigns a status of Suggested Invalid if the standalone sales are below the minimum number defined in the standalone selling price profile. You can then choose to either establish or not establish the observed standalone selling price.
  • If the observed standalone selling price is established, it's used in the allocation process for the relevant effective period.
  • If the standalone selling price is set to Don't Establish Price, the standalone sales are released to the standalone sales pool.
• Months Covered: Specifies the number of months that become the covered period used to calculate the observed standalone selling price.
• Item Classification: Defines the category of the item, memo line, or performance obligation template. The item classification is used as a filtering parameter when running the Calculate Observed Standalone Selling Prices process.
• SSP Tolerance Usage: Specifies the observed standalone selling price tolerance usage, which can be Median, High, or Low.
• Coverage: Specifies the percentage of standalone sales that should fall between the low tolerance value and the high tolerance value in the qualified standalone sales pool.
• High Tolerance Range and Low Tolerance Range: Specifies when you want the application to consider the observed standalone selling price as valid by defining the high and low tolerance range percentages along with the minimum coverage percentage required.
• Price Bands: If you use price bands, this information is defaulted from your pricing dimension assignments.

Default Policy for SSP Ranges

The Default Policy for SSP Ranges section lets you define default values for the SSP tolerance percentage and the policy for SSP ranges for a standalone selling price profile. These values default to all the items assigned to the SSP profile. You can override the values at the item level according to your business practices.

• SSP Tolerance: Specifies the tolerance percentage in accordance with the Standalone Selling Price policy of your business. Used by the application to calculate the standalone selling price low and high points.
• Below Low Point: Specifies the business policy when the selling price falls below the standalone selling price low point.
• In Range: Specifies the business policy when the selling price falls between the standalone selling price low and high points.
• Above High Point: Specifies the business policy when the selling price falls above the standalone selling price high point.

Assignments

The Assignments section lists the items, item groups, memo lines, or performance obligation templates that share this profile and that need to establish standalone selling prices. Click Create SSP to access the Create Standalone Selling Prices spreadsheet where you can create your standalone selling prices. You can add additional items to the standalone selling price profile. When you click Create SSP, the spreadsheet displays all the items that are assigned to the profile.

Price Bands

The Price Bands section is used to override the price band that is defaulted at the standalone selling price profile level for individual items that are assigned to that profile.