Defining Your System For Each Group
Price Points and Price Rules
Commonly, different systems will have different ways to set up pricing for each community buying group. One way to do this is to make what are called price points, which are essentially points at which the price gets reduced or discounted based on quantity or other factors. These points can be broken into account specific price point rules, allowing different accounts or even different types of accounts to have different rules applied to them. You can have points based on product type or even be broad across the board rules.
These types of components can be very complicated to get data on. Typically, the best way is to match the underlying pricing data to an internal ERP system that is already housing this information, or to leverage interactions with vendors either with a bulk Import or with a rule-based import of all the products from a particular vendor to match their price points.
There could be a lot of problems if this isn’t done correctly, so we encourage you to consider the level of fidelity your organization wishes to present. Then, consider the underlying data needed to show this image. It isn’t just about having price rules or prices logic in place. You need to keep the data up to date and synchronized, and maybe even pull information from your already existing systems. This could really benefit your organization, so consider a buying group platform, like Clarity, that has this capability.
In addition to quantity-based pricing rules, it’s also possible to set up even more specific rules based on certain criteria being met. Quantity could still be a factor, but you could also factor in the concept of buy one, get one free or other such discounts. Purchasing a lot of items can cause the fear of expensive shipping, but maybe once they purchase enough to fill up an entire truck there is a discount as it just a single truck picking up the items. Perhaps a customer is buying a new type of product for the first time and you wish to give them a discount incentive.
You can also have customer specific rules. This, alongside the previous capabilities discussed, can all be combined and leveraged; you will want to be as accurate as possible with pricing. We encourage you to consider this when evaluating a software platform. You want to get the most bang for your buck, all while getting the most capable system to meet your business needs long-term.
Whenever you are evaluating the best way to move forward, go through different transactions that have occurred over the course of the last several months or years. Ask your team to think about the different scenarios you may face, and determine how you would handle the more complicated ones. Will the system you’re thinking about purchasing be able to solve these issues? Think about how your platform will be impacted, and what capabilities you really need to serve for anticipated events.