Setting Price Cube Modifiers and Factors for Strategic Pricing

Use the Strategic Pricing Maintenance Price Cube pane to define factors used to determine the Strategic List or Strategic Cost. These factors consist of Price Cube Modifiers and Price Cube Factors.

Price Cube Modifiers

Price Cube Modifiers work with the Price Cube Factors to determine the Strategic List price or Strategic Cost of a product. These modifiers are defined with minimum and maximum values for supplier list price or supplier cost. The number of modifiers and minimum values for supplier list price or cost are developed together with Strategic Pricing Associates. When calculating a price, if the system does not find a Price Cube Modifier at the sell group level, it uses the default modifier set in the Strategic Pricing Price Cube Maintenance screen.

The minimum values must increase to establish a range from the top of the table to the bottom. The system uses the value of a product to select the Price Cube Modifier, and then uses that modifier when determining the Strategic List price and Strategic Cost calculations. In the following example, any product priced between $0.00 and $9.99 uses a modifier of 1.40. Of the product is priced between $10.00 and $14.99, the system uses a modifier of 1.20.

The system uses the last price cube modifier if the value is over the last minimum level.

To view and edit the Price Cube Modifiers for a sell group:

To view and edit the Price Cube Modifiers:

Price Cube Factors

Price Cube Factors work with Price Cube Modifiers to determine the Strategic List Price or Strategic List Cost for a product. The system searches for a product's core status (based on your service tier level), and maps that to the visibility of the vendor (how visible a vendor's pricing is to distributors) assigned to the sell group to determine the Price Cube Factor used in the strategic price and strategic cost calculations.

When calculating a price, if a Price Cube Factor is not defined at the sell group level, the system uses the Price Cubes in the . Strategic Pricing Price Cube Maintenance screen.  If a Price Cube Factor is not defined at the default level, the value defaults to 1.

Price Cube Factors are multiplied against the Price Cube Modifier to alter the factor based on Core Status and Sell Group Visibility.

Enter the factor as decimals, for example, enter 5% as 0.05.

To view and edit the Price Cube Factors for a sell group:

To view and edit the default Price Cube Factors:

See Also:

List and Cost Calculation – Silver Data Service Tier

List and Cost Calculation – Gold Data Service Tier

List and Cost Calculation - Platinum Data Service Tier