Utilize Pricing Strategies
to Align Price Setting with Business Goals
Metreo Guideline Manager gives you the ability to establish configurable
pricing strategies using multiple mechanisms at the product-segment
level. These price strategies encapsulate the current focus for
the business based on market, volume, or other conditions. Pricing
strategies provide a way for users to drive different pricing objective
across various product and mix categories. To accomplish this, Guideline
Manager synchronizes and alignes forecast data from sales, marketing
and operations and applies native functionality in a configurable
interface for testing different forward-looking price setting strategies,
such as:
- P75 - represents the 75th quartile price
for products sold in the past eliminating outliers
- Seasonal P75 - represents the 75th quartile
price for products sold in the past on a year-to-year basis
to address seasonal variations
- P(n) where (n) < 50 - represents the (n)
quartile point for price if prices are ranked from low to high
and where price is less than P50. This could be used in markets
where price is declining on a quarter to quarter basis
- Market indexed price - price would be a function
of an external index such as a raw material index (e.g. oil/natural
gas ratio) or a competitive price (e.g. chip price of the segment
leader)
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