If you subscribe to the Platinum Pricing Service tier in addition to your Data Services tier, the Strategic List and Strategic Cost can also include the customer's sensitivity rating in the calculation. Customer sensitivity is a rank that indicates how reactive a customer is to pricing changes, and ranges from Very Low to Very High. Strategic Pricing combines customer sensitivity rating for each combination of customer category and size, creating a matrix of pricing factors to use during the strategic price list calculation. Typically, as the sensitivity level increases, the pricing factors decrease. If sensitivity ratings are not available, the system calculates the Strategic List Price and Strategic Cost based on the Data Services tier.
Note: If you subscribe to the Silver or Gold Pricing Service, the system calculates Strategic List and Strategic Cost based on your Data Services level.
If the sell matrix is set up to use Strategic List, the strategic list price is calculated as follows:
Supplier List Price * [(Visibility Factor * Price Cube Modifier +1) * Customer Sensitivity]
If the sell matrix is set up to use Strategic Cost, calculation is as follows:
Vendor Cost * [(Visibility Factor * Price Cube Modifier * Customer Sensitivity) + 1]
For additional information about customer sensitivity, see Customer Size and Sensitivity Assignments.
See Also:
Viewing and Editing Customer Sensitivity Factors
List and Cost Calculation – Silver Data Service Tier