What is variablemargin pricingSolutionIt is a method that ge

What is variable-margin pricing?

Solution

It is a method that generates retail prices based on customer price sensitivity. Products are grouped into pools from a first pool for most price sentitive products to a last pool for least price sensitive products.

A relationship between margins and the customer price sensitivity is determinated for the product.

Based on the relationship and each prpoduct`s pool assigment it is calculated each product`s margin and corresponding retail price.