Pricing

The price of a product in an order can vary for several reasons during the order life cycle.

Organizations often sell common products at competitive prices. To ensure that the customers are not attracted to the competitors that offer exciting prices, many stores offer to match the price quoted by the customer. Customers usually have a favorite store where they shop frequently because of a wide range of products, services offered, store location, or other intangibles.

A store might not have the best prices on the market. However, the store can offer to match the competitors’ prices. In such situations, you can use the price matching feature and pursue the customer to continue shopping.

The application provides a user interface that you can use to view, capture, and apply a price match while ensuring that the price match is in accordance with the policies.

• If the competitor information does not exist in the system and if you have the permissions to create a competitor, you can create the competitor and a corresponding price match.
• If the competitor exists and there are prior price matches, you can apply the appropriate price match without spending time in investigating the price match.
• If the competitor exists and there are no prior price matches, you can manually create a price match for the competitor using the price match worksheet.
  • If the price mentioned by the customer is greater than an approved price match, you can enter the price details and apply the price match.
  • If the price mentioned by the customer is lesser than a rejected price match, you can still capture the details but the price match remains rejected until approved.

When you price match a product, alerts are raised to notify the approver with the price matches that are pending approval. The approver can then approve or reject a price match as applicable.

To calculate the refund amount, the price match percentage that is configured for the application is applied to the difference in the prices offered by the competitor. The order totals are adjusted appropriately once you apply an approved price match. The price at which the organization can offer the product depends on the price match percentage. For example, if the competitor organization offers 1 unit of a product at $10 and the your organization offers 1 unit of the same product at $11. The difference in the unit price is $1. If the price match percentage is 100%, then your organization can offer 1 unit of the product at $10.

The price of a product can be adjusted for various reasons like applying personalization charges or discounts. If the charges are applied using pricing rules configured for the enterprise, you cannot modify the charges. Charges that are not saved to the order can be deleted. However, charges that are already applied to the order cannot be deleted.

Sometimes customers are unhappy with their shopping experience due to a late shipment, a rude representative, or defective products. A customer might want to return all products and shop at a different store. In such situations, you can create a return order. However, you can save the sales and avoid creating a return by offering an appeasement. You can appease the customer by providing an incentive in the form of a discount on an entire order or individual order lines. The discount can be a pre-defined percentage or a variable amount. You can also provide a discount on future orders. The appeasements applied to the order are recorded in the associated invoice.

An invoice is a document that is issued by a seller to the buyer, indicating the products and agreed prices for the products. All the charges applied during the order life cycle can be summarized in the invoice. Every invoice is identified by a unique number and contains a statement indicating the purpose. The invoice could be created for an order, shipment, return, credit memo, debit memo, and so on. For a return order, a return invoice is generated. Similarly, when you add or modify the charges on an invoiced order, either a credit memo is created for discount applied or a debit memo is created for the charges applied.

An invoice typically contains an invoice number, date, billing address, store address, and the products included in the order. The pricing components include a breakup of header charges, taxes, and order total. If there is a pending amount to fulfill the order, the invoice can indicate the amount that is collected until date and the balance amount. Based on the type of invoice, some of the invoice details change. For example, a return invoice contains the address used to return the products and provide a refund, return total, refunded amount, and the remaining refund amount.