What pricing hierarchy does Intuilize recommend for distributors?

Understand the optimized pricing hierarchy framework that ensures consistent application of your pricing rules while maintaining flexibility for special situations.

A well-designed pricing hierarchy is essential for distributors to maintain pricing consistency while accommodating special situations and customer relationships. Intuilize recommends a structured hierarchy that prioritizes different pricing rules in a specific order.

Recommended Pricing Hierarchy:

1. Promotional Pricing: Limited-time offers and promotional discounts is at the top of the hierarchy and this table/price library is managed directly by our customers.
2. Contract/Job-Specific Pricing: This is the second  highest priority  given to legally binding contracts or job-specific pricing agreements. These override all other pricing considerations to ensure compliance with contractual obligations.
3. Customer-Supplier Specific Pricing: Special pricing arrangements between specific customers and suppliers (often called "SPA” ) take the next priority level. This table/price library is managed by our customers
4. Customer/product -Specific Libraries: Custom price libraries created for individual customers and specific products  based on their historical purchasing patterns and strategic importance.
5. Customer group/ product group : due to customer go to market strategy (including vendor’s driven pricing or distribution policies) our AI-generated pricing recommendations based on customer segmentation, product attributes, and market conditions will be translated into customer or products groups (or tiers) 
6. Enterprise or baseline  Pricing Library: Company-wide standard pricing that applies in the absence of other specific pricing rules.
7. List(know as street, web or public)  Pricing: through the implementation we will capture your needs and business rules to define this pricing which can go from using the manufacturer's suggested pricing or create another pricing layer you can use in your website 

Implementation Considerations:

• System Configuration: Your ERP or pricing system must be configured to evaluate pricing sources in the correct order of precedence.
• Library Naming Conventions: Develop clear naming conventions for pricing libraries to make them easily identifiable (e.g., including "special" in the name of customer-specific libraries).
• Handling Exceptions: Create a documented process for handling exceptional situations that don't fit within the standard hierarchy.
• Tagging Mechanism: Implement a tagging system to identify which level of the hierarchy was used to determine the final price for analysis and auditing purposes.
• Regular Review: Schedule periodic reviews of the pricing hierarchy to ensure it continues to meet business needs and market conditions.

This structured approach ensures pricing consistency, reduces confusion among sales staff, and maintains appropriate pricing differentiation between customer segments while honoring special arrangements and contractual obligations.