Pricing Policy - Introduction

Pricing Policy: Introduction

Do it Best has defined five "Sensitivity" types and assigned one to all items.

Price Sensitive
Competitive
Non-Competitive
Blind
Unknown

Profit Manager defines Default Rules for each of these "Sensitivity" types. And for each of these types has two variables that you can adjust: Pricing Policy and Rounding Method.

The Pricing Policy has four options for calculating YOUR retail:

DIB Suggested
% Less than DIB
% Greater than DIB
% Margin

How you set them for each of the Sensitivity types depends on you market place and the "Price Image" that you want to project. If you are in a very competitive market you may want to be set like this:

Price Sensitive	DIB Suggested
Competitive	DIB Suggested
Non-Competitive	1% Greater than DIB
Blind	1% Greater than DIB
Undefined	1% Greater than DIB

We are in an area with the closest Lowes/Menards is 20 miles away, so can make a little more margin still maintain a decent "Price Image". Our Default Rules are set like this:

Price Sensitive	DIB Suggested
Competitive	0.5% Higher than DIB
Non-Competitive	3% Greater than DIB
Blind	4% Greater than DIB
Undefined	4% Greater than DIB

But don't worry, Profit Manager makes it simple to experiment, and even simpler to change your retails so you get just the right "Price Image" for your store.