Price calculation by means of ERP system

This website alone shows how outdated cost-plus-margin pricing is. Nevertheless, pricing is an essential part of the corporate as well as the marketing strategy. Today, pricing is done from the ERP-system.

Comprehensive data can be used to calculate prices in a more targeted manner. How do you ask yourself? Here is a guide:

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Strategic pricing is the real win

As already mentioned, the corporate and marketing strategy are an important part of pricing (or vice versa). In any case, both form the basis for the "pricing" of products or services. In addition to cost coverage and profit, this basis is becoming increasingly important. It also supports marketing objectives, such as a new product. Risks are gladly accepted for additional market share.

Make prices individually attractive

Order quantities, regions, target groups, previous purchases - all these (and many more) are important factors in pricing. Complex? Yep, but it's worth it. Because the more individualised the customer price can be set, the more attractive it becomes. Promotions, loyalty discounts, flat rates and other special offers can be used in a targeted manner.

ERP in use for price calculation

Now you're asking yourself: How is that supposed to work? This is where the ERP software comes in. After all, collecting, analysing and visualising complex amounts of data is also a job for this solution. Price deviations must be visible, e.g. whether a discount campaign was successful.
To ensure such processes, the following should be available in the ERP:

base data - because sufficient information about articles and customers is the be-all and end-all of good pricing using ERP. The data should also be up-to-date.
transaction data - i.e. orders, stock levels or contacts. These must always be able to interact flexibly with the master data and the various price models.
functions - are essential for data exchange with a webshop connection, for example (see below). In the case of pricing, priority is given to the options for evaluation. The export and customisation of these are also helpful.

Data reconciliation with webshop

Especially for products, a web shop is actually indispensable nowadays. AddOns for Ecommerce-There are many ERP systems. For an investment in this direction to make sense, data synchronisation between the two systems must be guaranteed. Prices, conditions, stock levels or product descriptions will then always match. This provides a good basis for analyses for pricing.

Conclusion

The consequences of using a suitable ERP system for pricing are, on the one hand, cost transparency - also in connection with cost coverage and profit. In addition, the various complex factors are simplified in such a way that pricing becomes possible.

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