A price increase decision is made, and the task comes down to updating the prices of thousands of products. At this point, a spreadsheet file is opened, calculations are made, and the results are entered into the system one by one.
The process takes hours, and inevitably, a few products are skipped. The skipped products continue to be sold at the old price, and the discrepancy is only noticed at the end of the month when margins drop.
In this article, we explained the price list structure, validity dates, bulk updates, and channel-based pricing.
Table of Contents
Why a list structure?
Keeping the price as a single field on the product card is the simplest yet most limited approach.
As soon as different prices are offered to different customer groups, this structure becomes inadequate. Every exception requires opening a separate field on the card.
A list structure, on the other hand, separates the price from the product and allows multiple prices to exist simultaneously.
This separation also simplifies updates; a list is updated in bulk, and all customers linked to that list are affected.
Definitions managed in the definitions module.managed in the definitions module.
Designing the list structure
How many lists to define depends on the complexity of your pricing policy and should be kept moderate.
For most businesses, three or four lists are sufficient: retail, wholesale, dealer, and special agreements.
Opening a separate list for each customer defeats the purpose of the structure and multiplies the updating burden.
Proportional relationships can be established between lists; one list can be derived from another by a specific ratio.
This derivation ensures that changing a single list during an update reflects on the others as well.
List assignment
Which customer will receive pricing from which list is defined on the current account card.
When this assignment is left blank, the default list is used; however, relying on the default is risky.
Bulk assignment can also be made based on customer groups, which makes the job easier for new customers.
If the assignment changes, the justification must be recorded; it will later be asked why a customer was moved to a higher group.
We covered the card structure in the current account card article.
Validity dates
Having validity dates for prices turns price-hike day from a panic into a planned operation.
New prices are entered in advance and automatically go into effect on the specified date. There is no need for a bulk update at midnight.
This structure also manages campaign prices; a price with a start and end date expires automatically.
Forgotten campaign prices continue to be applied for months when this mechanism is absent.
Storing past-dated prices also makes retrospective queries possible.
Bulk update
Bulk update is the most time-saving feature of price management and must be set up correctly.
Updates must be filterable by product group or brand. Raising the prices of the entire catalog by the same percentage is rarely correct.
Proportional and fixed-amount update options should be offered together; a fixed amount increase is more appropriate for some products.
Rounding rules should also be defined; decimal prices create both visual and operational issues.
Previewing before the update is the most important step to prevent erroneous bulk operations.
Channel-based pricing
Different sales channels have different cost structures, and prices may need to be differentiated accordingly.
There are commissions in marketplace sales; selling at the same price noticeably reduces the margin.
On your own channel, there are no commissions, but marketing costs come into play.
How channel-based price differences will be perceived by the customer must also be considered; excessive differences erode trust.
We discussed channel profitability in the multi-channel sales management article.
Relationship with discounts
Price lists and discounts are two mechanisms that can produce the same result but work differently.
The list determines the base price seen by the customer. The discount is the reduction made over this price.
Using both together is common; however, the calculation order must be clear.
Overlapping discounts can produce unexpectedly low prices, and this must be controlled.
We explained the discount structure in the discount matrix article.
Margin protection
The most important safeguard of the pricing structure is the lower margin limit, and it should be defined in every business.
When the calculated price falls below this limit, a warning should be given or the transaction should be blocked.
When costs change, this control becomes even more critical; old prices can turn into sales at a loss.
The time it takes to reflect cost increases in prices should also be monitored; delays directly result in margin loss.
Without this control, combinations of campaigns and discounts can silently generate losses.
Price history
Recording price changes is necessary for both analysis and dispute management.
When a customer questions a past invoice, what the price was on that date must be known.
The frequency of price changes is also a trackable indicator; very frequently changing prices undermine customer trust.
It should also be recorded who made the change; unauthorized updates can only be detected this way.
These logs audit logs are kept within the scope of.
Points to consider
Defining too many lists multiplies the update burden and defeats the purpose of the structure.
Failing to preview before a bulk update leads to errors that are difficult to revert.
Not using a validity date causes campaign prices to be forgotten.
Granting price modification authority too broadly also produces uncontrolled discounts.
Failing to define a lower margin limit is the most costly oversight; selling at a loss continues unnoticed.
Frequently asked questions
How many price lists is appropriate to define?
Three or four lists are sufficient for most businesses; opening a separate list for every customer renders the structure dysfunctional.
Can prices be uploaded from a file?
They can be uploaded; file integration we explained the method in the article.
Can prices be kept in foreign currency?
They can be; the date from which the exchange rate will be taken must be determined during the setup phase.
Are marketplace prices also managed from here?
Channel-based lists can be defined; the synchronization setup marketplace integration was discussed in the article.
The price list structure is a definition that turns price hike days from an hourly task into a minute-long transaction. The return is seen immediately upon the first update.
Keep the number of lists low; opening a separate list for each customer completely eliminates the convenience provided by the structure.
Use validity dates; entering future-dated prices eliminates the need for midnight bulk updates.
Do not skip the preview before a bulk update either; errors that are hardest to reverse stem from skipping this step.
Be sure to define a lower margin limit; overlapping discounts quietly generate losses if there is no control.
By consulting with the EQLEM team, you can plan your pricing structure.