Group Step Level Price Alignment Examples
These are some examples of Group Step Level Pricing:
Group Step Level Re-Pricing Example without Price Banding
Baseline and Step Level Groups Defined
In this example, the baseline group includes cloth seat covers and the step level group includes leather seat covers.
Pricing Policy Rules Used in Example
In this example, following is the relevant pricing policy rule to be used.
Step 1:
The first part of the group price alignment rule is applied. The Baseline Group Average Price is calculated to be $100.00. Note that there is no Baseline Adjustment for this amount.
Step 2:
The Step Level Group Price is calculated to be 15% higher than the Baseline Group Average Price: $100 + (15% * $100) = $115.
Step 3:
New Recommended Prices are assigned. All parts in the Baseline Group are assigned a price of $100; all parts in the Step Level Group are assigned a price of $115.
Group Step Level Re-Pricing Example with Price Banding
Baseline and Step Level Groups Defined
In this example, the baseline group includes cloth seat covers and the step level group includes leather seat covers.
Pricing Policy Rules Used in Example
In this example, following is the relevant pricing policy rule to be used.
Step 1:
The first part of the group price alignment rule is applied. The Baseline Group Average Price is calculated to be $100.00. Note that there is no Baseline Adjustment for this amount.
Step 2:
The Step Level Group Price is calculated to be 15% higher than the Baseline Group Average Price: $100 + (15% * $100) = $115.
Step 3:
Price banding is applied.
The pre-price band prices are the prices after the main pricing policy rule is applied (although, in this case, there was no main pricing policy rule).
Two sets of price bands are calculated - one for the Baseline Group and one for the Step Level Group.
• The price band for the Baseline Group is +/- 5% of the calculated Baseline Group Average Price of $100. This means that the upper limit of the price band is $100 + ($100 * 5%) = $105, and the lower limit is $100 - ($100 * 5%) = $95.
• The price band for the Step Level Group is +/- 5% of the calculated Step Level Group Price of $115. This means that the upper limit of the price band is $115 + ($115 * 5%) = $120.75, and the lower limit is $115 - ($115 * 5%) = $109.25.
Post-price band prices are calculated as follows:
For the Baseline Group price band:
• The pre-price band price for 7328BC = $95. This price falls within the price band, so the post-price band price remains $95.
• The pre-price band price for 7328GC = $100. This price falls within the price band, so the post-price band price remains $100.
• The pre-price band price for 7328TC = $105. This price falls within the price band, so the post-price band price remains $105.
For the Step Level Group price band:
• The pre-price band price for 7328BL = $117. This price falls within the price band, so the post-price band price remains $117.
• The pre-price band price for 7328GC = $122. This price is above the upper limit of the price band, so the post-price band price is set at the upper limit price of $120.75.
• The pre-price band price for 7328TC = $123. This price is above the upper limit of the price band, so the post-price band price is set at the upper limit price of $120.75.
Step 4:
The new recommended prices are assigned as the post-price band prices.