DM03: Ensure (Net/List) Prices are aligned across a region (Price corridor)

Pricing Manager

Business Objective:

Adjust Local / regional List Prices to ensure (net) prices are aligned across Europe and in the predefined pricing corridor to avoid cross boarder business and reduce risk exposure.

Limited possibility to enforce countries / regions to align prices and stay in price corridor.

Alert local pricing manager and automatically set prices accordingly to the price corridor. For exceptions ensure global awareness and approval.

• Avoid margin erosion in high price countries

• Avoid cross boarder business and volume / revenue shift to low price countries

• Reduce risk exposure towards international distributors / customers and buying corporations

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At present, this task is predominantly carried out through manual means, requiring considerable effort. This manual approach hampers organizations' ability to ensure price alignment across countries, regions, and broader market contexts, thus adhering to the defined price corridor.

The opportunity here lies in implementing controls and visualizations that enable pricing managers to set and adjust prices, ensuring alignment within the designated price corridor. There are several benefits to this, including the potential to strategically increase prices, particularly in higher-priced countries, while preventing disparities in cross-border transactions and market segments. Additionally, this initiative aims to mitigate discrepancies in prices across different markets.

Let’s take a look at how this can be done in Pricefx.

Pricefx gives you visualization tools that facilitate swift navigation to specific products or services, allowing an understanding of price performance in the market. One such tool is a pre-configured dashboard within Pricefx. This dashboard visually presents the current local list price and the actual price paid by customers. Moreover, it presents a visualization of the price corridor defined by business rules. Leveraging this information, it becomes feasible to promptly pinpoint markets necessitating price adjustments.

Local price lists within the system empower you to efficiently review your product catalog and identify products with prices that deviate from the established price corridor. These lists allow for rapid identification and action. For instance, a product with a price significantly lower than the lower limit of the prescribed corridor can be readily identified. Adjustments can be made by selecting alternative strategies or implementing manual overrides. In the case of the latter, the applied adjustment becomes apparent by the removal of a flag, signifying alignment with the specified price corridor.

Upon finalizing a manual adjustment, the revised price recommendation is prepared for submission. This entails a process of approval and integration into the system. If you follow this process, you can ensure that your prices remain aligned with the predefined price corridor, thereby optimizing pricing strategies for various markets and regions.

This concludes this quick flow on how to ensure that net and/ or list prices are aligned across a region via a price corridor in Pricefx.