Explaining Retail Pricing

Objectives

After completing this lesson, you will be able to:

  • Describe retail pricing functionality

Basic Functions of Retail Pricing

Scenario

Every merchandise that is to be sold at the store needs a price. The basis of this price can differ depending on various situations; for example – when supplied via the DC, when supplied by the supplier directly etc. With Retail pricing, you analyze the possible ways to arrive at the suggested ‘retail’ price for a material for a particular store.

Basic Functions of Retail Pricing

To be able to sell materials, you must define retail prices for stores and other points of sale. In the cases where merchandise is subject to a logistics process with several steps, you also need to define the transfer prices that are charged by certain organizational units (such as distribution centers) to the organizational units receiving the merchandise.

The sales price calculation function (retail pricing) allows you to maintain retail prices and DC transfer prices (together known as sales prices) efficiently for plants (stores and distribution centers) and other operational units.

The point of sales price maintenance is to maintain the final sales prices for a material in a store or group of stores, or to maintain transfer prices in a warehouse or distribution center.

The calculation of the sales prices is based on purchase prices and predefined markups. Sales prices can be maintained for individual materials or for a group of materials (mass maintenance). The prices are always stored at single material level and plant/distribution chain or price list level.

The selection options for materials are:

  • Material number (variant) from/to
  • Material Group
  • Supplier or supplier sub-range
  • Season

The following pricing levels can be selected:

  • Sales organization
  • Distribution channel
  • Plant group
  • Plant
  • Price list

The plant group is an option of simplifying maintenance during selection. The calculated prices are saved in the database at the Plant data retention level.

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