Price Parody in Retail Pricing

[karmandeep_nanuan]

Hi Retail Experts,

I had a question pertaining to price parody in retail pricing. How can we ensure that different sizes of the same article follow a price parody, i.e. how do we ensure that the bigger package always give the customer the best price per, lets say pound our ounce.

Example Below of Tide Detergent

Current Values

Tide Size: 90 load:

Regular Retail Price = 11.99/EA

$/oz = $0.99/oz [this is what's displayed on the tag]

Tide Size: 60 load:

Reg. Retail = 8.99/EA

$/oz = $1.29/oz

Tide Size: 30 load:

Reg. Retail = 6.99/EA

$/oz = $1.49/oz

We want to give the customer a 'better deal' when they buy the bigger size. So the $/oz value must be highest for the largest packs. So, when the Retail Price changes for one of the above 3 articles, we have to make sure that the Retail Price changes for the other two articles in accordance with their $/oz hierarchy.

Values After Retail Price Change

Tide 90 load:

Reg. Retail = 11.99/EA

$/oz = $0.99/oz [this is what's displayed on the tag]

Tide 60 load:

Reg. Retail = 10.99/EA [Retail Price Change]

$/oz = $1.59/oz [Value goes up as Retail Price increases]

Tide 30 load:

Reg. Retail = 6.99/EA

$/oz = $1.49/oz

In the example above, the value ($/oz) of the 30 load Tide is not lower than the 60 load. So, to the customer buying the 30 load Tide has a better value. We have to therefore make sure that we also increase the Retail Price of the 30 load and the 90 load.

How can this be handled in SAP Retail Pricing?

Thanks in advance,

D

[amit_tunara]

Hi Deep,

From your question, what I understand is you want to set different prices for the same article depending on its volume. My answer is in line with this understanding.

In SAP IS Retail, when you define Retail prices, there is a concept of condition techniques and supplement conditions. For any condition type, we can define the scales based on the quantity, value, size, weight, volume and other parameters.

In your given example, we can use the Volume as the SCALE BASIS and then can define the different discount value / percentage for each volume of 90 Load, 60 Load and 30 Load. So if the price changes, depending on these scale, the discount amount will change and it will impact the final RP (Retail Price).

Let me know if you need any other information.

Regards,

Amit

[karmandeep_nanuan]

Hi Amit,

I understand your point on using scales for size/volume to address this issue. But each of the three articles I mentioned above are unique articles (SKUs) and thus have to be handled individually. We just want to find a way to link them, so that when one of their retail prices change, we can adjust the retail prices of the others accordingly.

I've tried various approaches in standard IS Retail but have not come up with a way to address this issue. Any other thoughts or suggestions would be greatly appreciated.

Thanks,

D

[amit_tunara]

Hi Deep,

If you want to link these articles together, then use a concept of Generic article where these 3 can be created as variant linked to a single generic article. When you use generic article, you can define the pricing of a variant dependent on other variant. To control this you need to use appropriate pricing control in article master.

You can define your own discounts and scales for each variant.

Try this approach.

Let me know if you need any other information.

Regards,

Amit