Retail Sales Price Management - Locus IT Services

Retail Sales Price Management

Locus IT ServicesMicrosoft RMS & POSRetail Sales Price Management

Retail Sales Price Management

This article provides information about Microsoft Dynamics RMS and Microsoft Dynamics POS process of creating and managing sales prices. It mainly focuses on the concepts that are involved in this process, and on the effects of the various configuration options for sales prices. The following terms are used in this topic.

  • Price

The single unit amount that a product sells for in a point of sale (Microsoft Dynamics POS) client or on a sales order. In this case, the term price always refers to the sales price, not the inventory price or cost price.

  • Base price

The price value that is set in the Price field on a released product.

  • Trade agreement price

The price that is set on a variant or a product by using a trade agreement of the Price (sales) type.

  • Best price

When one or more price or a discount can be applied to a product, the smallest price amount and/or the largest discount amount that produces the lowest possible net amount that the customer must pay.

Price Groups

Price groups are at the heart of price and discount management in Microsoft Dynamics RMS. They are used to assign prices and discounts to retail entities (that is, channels, catalogs, affiliations, and loyalty programs). Because price groups are used for each pricing and discounts, it’s very important that you plan how you will use them before you start.

The following sections provide more information about the Microsoft Dynamics RMS entities that you can use to set distinct prices when the price groups are used. The configuration of all prices and discounts for these entities is a two-step process. These steps can be done in either order.

  • Channels

In the Microsoft Dynamics RMS industry, it’s very typical to have different prices in different channels. The two initial factors that affect channel-specific prices are costs and local market conditions.

  1. Costs
  2. Local market conditions
  • Affiliations

The definition of an affiliation is a link to or association with a group. In Microsoft Dynamics RMS, affiliations are groups of customers. Affiliations are a much more flexible tool for customer pricing and discounts than the core Microsoft Dynamics concept of customer groups and discount groups.

  • Loyalty Programs

In affiliation to prices and discounts, loyalty programs are basically just an affiliation that has a special name. Both the prices and discounts that can be set for a loyalty program, just as they can be set for an affiliation.

  • Catalogs

Some retailers use virtual or physical catalogs to market products to, and price them for, focused groups of customers.

  • Best Practices for Price Groups

Never use a price group for multiple retail entity types. Instead, use one set of the price groups for channels, a different set of price groups for loyalty programs or affiliations, and so on.

Pricing Priority

A pricing priority is just a description and a number. Pricing priorities can be applicable to price groups, or they can be applied directly to discounts. When pricing priorities are utilized, they let a retailer override the principle of the best price by controlling the order in which prices and discounts are applied to products. A large pricing priority number is valuated before a lower pricing priority number.

The pricing priority was introduced to support the scenarios where a retailer wants to apply higher prices in a specific set of stores. Furthermore, the pricing priority feature lets the retailer create a pricing priority for store prices that is higher than the pricing priority for regional prices.

Types of Prices

In Microsoft Dynamics, you can set the price of a product in three places:

  • Directly on the product (base price)
  • In a Microsoft Dynamics POS, price trade agreement
  • In a price adjustment

The base price and trade agreement price are part of core Microsoft Dynamics and are available even if you don’t use Retail. The price adjustment functionality now available only in Retail.

Category Price Rules

The category price rules in Retail gives you an simple method to create new trade agreements for all the products in a category. This additional feature allows you automatically find existing trade agreements for the products in the category and expire them.

When you going to select the option to expire existing trade agreements, the system automatically creates a new trade agreement journal for the products in the category that have an active trade agreement. The prices can be decreased or increased by using the Price rule and Price basis fields of the category price rules.

  • In the Price rule field, select the type of price change to use: Markup, Margin, Fixed amount
  • In the Price basis field, select the type of price to modify: Base cost, Base price, Current price

Differences Between Retail Pricing and Non-Retail Pricing

Retail pricing is intended to work with retail entities instead of non-retail entities. Especially, it is designed to set prices by store, not by warehouse. The retail pricing engine does not support the following pricing feature highlights:

  • Setting up price by using the Site and Warehouse storage dimensions
  • Attribute-based pricing
  • Vendor discount pass-through

Being a Microsoft Dynamics partner Locus IT provides Retail Management services along with training, support and implementation. For more information please contact us.

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