Apply strategies

Price IQ supports the creation of high-level pricing strategies that help you achieve the best possible outcomes across various slices of your business. These strategies can include maximizing profit, controlling price spreads, or other performance-related metrics.

When setting up Price IQ with your Zilliant representative, you define your business goals and needs. The configuration team then creates multiple pricing strategies tailored to those goals. After that, you can adjust strategy values to optimize your prices accordingly.

In this topic, learn about:

• Strategies
• Managing strategies

Strategies

A pricing strategy is a collection of parameters that help you achieve the most favorable results to satisfy a specific business need. Such strategies can be implemented as a formula, or as input to a mathematical solver.

You can define multiple strategies tailored to specific goals or slices of your business. By using scenarios, you can apply these strategies to your products and customers, experiment with different strategy values, compare them, and select the optimal results.

The following table highlights common pricing strategies.

Manage strategies

To start working with strategies, open a scenario. Each strategy is represented on a separate worksheet in your scenario workbook. The following image shows an example of a strategy worksheet:

Each strategy worksheet consists of multiple strategy lines. A strategy line is a combination of specific strategy values you want to apply to a particular business segment. A strategy line includes the following elements:

• Scope—Collection of drop-down and type-ahead columns that define the business segment the strategy line applies to. For example, you can select a product group, region, or customer to apply your strategy line to. On the image above, the Prod Lvl 1 and Prod Lvl 2 columns are scopes.
• Parameters—Values to be set by the strategy line. For example, you can specify the minimal product price the optimization solver can generate, or the minimal profit margin you want to secure for a specific product group. On the image above, the Min Margin column is a parameter.
• Priority—Priority order of the strategy line when there are overlapping scopes. A strategy line with a lower priority number takes precedence over lines with a higher number.
  Example

  You want to attain a minimum margin of 25% for all products you sell across the European region. However, there's a specific product within the same European region for which you aim to secure a minimum margin of 30%. To accomplish this, assign a higher priority to the strategy line with the 30% margin and a lower priority to the strategy line with the 25% margin.

Add a strategy line

1. From the Price IQ Manager Dashboard, expand the Scenarios folder.
2. Select a scenario name to go to its workbook.
3. On the strategy worksheet, select Insert Row.
4. Select or enter scope, parameter, and priority information for the strategy line.
5. Select Save.

Delete a strategy line

To delete one or more strategy lines, highlight them on the worksheet, and then select Delete Row.