In Leader/Follower Pricing, parts are defined as either a leader or a follower. Then, the new price for the leader part drives the new price for the follower parts. For example, a leader might be a left-hand mirror and followers might be right-hand mirrors in various colors. Leader/Follower Pricing can be used to price the right-hand mirrors based on the price of the left-hand mirror.

A part can be a leader or a follower, but not both at the same time. The leader/follower hierarchical structure is only two levels deep. This means that a leader can have many followers, but followers cannot have followers.

The following diagram shows the effect of Leader/Follower price alignment. Notice how the Before scenario shows the leader and followers at different prices, but the After scenario shows the followers all priced at the leader price.

Follow these steps to use Leader/Follower Pricing.

Step 1: Set up the leader/follower relationships between parts

Step 2: Create a segment for the leader/follower parts

Step 3: Use a pricing policy to align part prices using Leader/Follower Pricing