A price change on 90 items is decided in an afternoon and paid for over a whole year.
Competitor prices arrive as a weekly list, sales history sits in BI, purchasing terms in the ERP. Anyone who wants to see the effect of a price cut needs all three, plus an assumption about how sales will respond. In practice, that assumption is made by whoever argues loudest.
90items in the pricing roundThat is how many items are up for decision, across four product groups.
0.24 eurosgap to the competitorThat is how far the key value item coffee 500 g sits above the nearest competitor's price.
3scenariosHold, match, undercut, each with its own effect on sales and margin.
12 monthslife of the decisionThat is how long the agreed price applies until the next round revisits it.
Thursday's pricing round chooses between three fully calculated scenarios, with sales, margin and revenue effects per product group, and over twelve months the better choice adds up to 3 to 8% revenue growth.
The 3 to 8% revenue growth is this agent's headline figure. The 0.24 euro gap on the key value item and the 90 items in the pricing round are an illustrative example and do not come from any survey.