The gap amount and percentages are a measure of the actual pricing used on an order versus what the system-calculated strategic price for the product would have been, and serves as a measure of how closely actual prices match to the calculated Strategic Pricing rules. Reasons for prices not matching could include:
A product used contract pricing.
A user overrode the price on an order.
A product was placed on the order as an substitute product, using the price of the originally ordered product.
The gap calculation is a ratio of the net price to the strategic price for a product: Gap = Net Price/Strategic Price. If a line item on an order used the system-calculated strategic price, the gap is $0 (or 100%, meaning you achieve 100% of the strategic price opportunity).
The calculation does not include the following:
Lot billing orders
Credit orders
Finance charge orders
Invoices prior to turning on Strategic Pricing
Invoices that do not have a calculated strategic price, for example, orders for customers that do not have a category or size.
Use the gap analysis tools to review where you made the most using Strategic Pricing, and the areas where you have opportunities to improve. You can view statistics by the following:
To get started, build the Strategic Pricing Analysis File.
See Also:
Analyzing Strategic Price Gaps by Salesperson