DM05: Proactively and efficiently set a price for a new product

Pricing Manager

Business Objective:

Set proactively List Prices for a new product e.g. product is launched or status has changed to active.

Manual and late price calculations on an ad hoc basis.

Receiving proactive notification once a new product is created, triggering the calculation in line with pricing strategy and allowing for seamless execution back into ERP system.

• No time delay between product being sellable and price being available

• New product price is in line with the other prices

• Lower risk of manual failures

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The way things are currently done is often quite manual. The team responsible for pricing within a company has to receive information about any new products being added to the portfolio that require pricing. Unfortunately, there's a lack of consistency in how these new products are priced, which can lead to errors. However, we have an opportunity here to make things better. By allowing the system to collect all the necessary information for new products and create notifications or a price list as soon as they're enabled within the solution, we can avoid the manual effort involved in setting up prices. We can also use the pricing strategies defined within the solution to calculate the price and execute it back into the ERP system. This will result in significant benefits, including a reduction in the time it takes to get a product available in the system, create a price, and execute it back into the ERP system. This means a much faster turnaround time for pricing these products and better alignment with sales.

Now let’s get into Pricefx and see how you can achieve more efficiency when setting a price for a new product.

Let's start by taking a look at your product portfolio. We can easily view all of your products in the system. One useful feature in Pricefx is the life cycle of each product.

To demonstrate this, let's create a few products in the system where the lifecycle is set to new products. This will represent products that have been added from your current ERP, and for which you want to set up a price for the first time. Now we have three new products that have been created in Pricefx, all with a lifecycle of NPI.

We can use this lifecycle flag to create a price list that will automatically add these products and allow you to set up prices for them. For this exercise, we've also added cost information for the new products. However, in a typical scenario, this information will be loaded from the ERP automatically.

Let's create a new price list. To begin with, we'll select the default template and give it a name.

Next, we'll move on to selecting the new products. If you'd like, we can use the dynamic item selection mode in the system and select the criteria automatically. In this case, we can use a filter to select any products where the lifecycle equals NPI. Once we apply the filter, the system will immediately identify the three products that you created.

You can then continue to select the additional parameters and create your price. Once you've created the price grid, you'll notice that the current number of items is zero. This is because the price rate hasn't been executed in the system yet. However, triggering that calculation manually will do the trick.

Once that's done, you'll see that the system has added three items into the price grid.

Now, we will move on to the Live Price Grid (:options: ➡️ Price Setting ➡️ Live Price Grid), open up the price grid and take a look at the prices that the system has calculated. We can see that the prices for these products have been calculated based on the cost that was loaded into the system. However, we can also make adjustments and calculate or enter a new price override for these products manually. Let's do that for a couple of these products. Let's say we want the price of the first product to be $220. The system will identify that the change in the price was due to a manual override. We will leave the other two prices as they are.

From here, we can quickly select all of these items and send them for approval. We can do that individually, but in this case, let's go ahead and submit all of these prices for approval. Since we don't have any approval process required for these new products, the prices have been approved and will now be live on the system automatically. This is because Pricefx can seamlessly set up integrations back into your ERP to load these prices.

With this, we will close the flow for this use case in proactively and efficiently setting a price for a new product in Pricefx.