ESI Product Pricing helps retailers improve execution of and compliance with their pricing policy, strategies and goals.
ESI Product Pricing can help you:
- Simplify and streamline the pricing process with rules-based pricing.
- Respond quickly to volatile vendor cost and competitive price changes with advanced price maintenance.
- Quickly review, approve and deliver pricing to downstream systems with advanced pricing delivery capabilities.
To gave a price for a product we should follow these below steps.
- Know the market
- Choose the best pricing technique
- Work out our costs
- Consider cost-plus pricing
- Set a value-based price
- Think about other influences on price
Know the market
- Finding out how much customers will pay, as well as how much competitors charge.
- We can then decide whether to match or beat them.
Choose the best pricing technique
- Value-based pricing is determined by how much value our customers attach to our product.
- Decide which approach is most suitable for our products before making a calculation.
Work out your costs
- Include all direct costs, including money spent developing a product or service.
- Work out what percentage of our fixed costs the product needs to cover.
Consider cost-plus pricing
- This is usually expressed as a percentage of breakeven.
- Industry norms, experience or market knowledge will help to decide mark-up.
Set a value-based price
- Need to know our market well to set a value-based price.
Think about other influences on price
- We keep margins modest on some products in order to achieve higher margin sales.