When calculating prices, you use some rules how to do it, a sequence of steps. For example, when calculating a price using the Cost Plus pricing strategy, you typically need to retrieve the cost of the product, then find the margin uplift relevant to that product and then calculate the list price.
In Price Setting Accelerator, the Pricing Strategy represents the technical implementation of your pricing rules. When a price strategy is executed, it results in a price proposal for your product. When you change the strategy (update it), it results in a new price proposal.
You can have different price strategies for different Pricing Levels and Product Segments. The accelerator will calculate prices based on all of them and the one with the highest priority will end up as the final price proposal for your product.
Out-of-the-box Pricing Strategies
The accelerator contains several configurable pricing strategies out of the box:
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Competition Based – Min, Avg and Max
Custom Pricing Strategies
In most cases, you will however create your own pricing rules by adjusting the provided out-of-the-box strategies or creating new ones from the scratch. The accelerator lets you define your own strategy and use it in the calculation process.