System and Methods for Measuring Effectiveness for Strategic Mass Price Change
The present invention relates to systems and methods for measuring the effectiveness of mass price changes. In some embodiments, a mass price change with an effective date is inputted. This mass price change may then be cross referenced by the price protection and price cap terms to calculate a total price cap and price protection adjustment for each deal, which is then enforced upon each deal to yield a total revenue impact, which is what is actually realized by the mass price change after the total price cap and price protection adjustment. The total revenue impact may then be applied to generate an adjusted price. The adjusted price may be displayed in conjunction with the negotiated price to fully illustrate the mass price change effectiveness.
1 . A method for measuring the effectiveness of a mass price change, useful in association with an integrated price management system, the method comprising:
inputting a mass price change with an effective date;
calculate, using a computer, a total price cap and price protection adjustment for each deal;
enforce the price protection and price cap terms by applying the price cap and price protection adjustment to each deal;
calculating a total revenue impact for each deal;
calculate an adjusted price for each deal by applying the total revenue impact for each deal, respectively; and
displaying a negotiated price for each deal in conjunction with the adjusted price for each deal.
2 . The method of claim 1 , wherein the enforcement of the price protection and price cap terms includes overriding a term of the mass price change.
3 . The method of claim 1 , wherein the enforcement of the price protection and price cap terms includes modifying a term of the mass price change.
4 . The method of claim 2 , wherein calculating the total price cap and price protection adjustment includes generating a waterfall for the deal.
5 . The method of claim 4 , wherein the calculating the total price cap and price protection adjustment includes applying overrides of the terms to the waterfall for the deal.
6 . The method of claim 3 , wherein calculating the total price cap and price protection adjustment includes generating a waterfall for the deal.
7 . The method of claim 6 , wherein the calculating the total price cap and price protection adjustment includes applying modifications of the terms to the waterfall for the deal.
8 . The method of claim 1 , wherein the price protection term includes a validity range, type, and period, and wherein the type is one of delayed, firm-trough, or rolling.
9 . The method of claim 1 , further comprising calculating a pocket margin for the adjusted price.
10 . The method of claim 9 , further comprising comparing the pocket margin for the adjusted price to pocket margin prior to the mass price change.
11 . A system for measuring the effectiveness of a mass price change comprising:
an interface configured to receive a mass price change with an effective date;
a price adjustment engine, including a processor configured to:
calculate a total price cap and price protection adjustment for each deal;
enforce the price protection and price cap terms by applying the price cap and price protection adjustment to each deal; and
calculating a total revenue impact for each deal;
calculate an adjusted price for each deal by applying the total revenue impact for each deal, respectively; and
a display configured to show a negotiated price for each deal in conjunction with the adjusted price for each deal.
12 . The system of claim 11 , wherein the price adjustment engine overrides a term of the mass price change.
13 . The system of claim 11 , wherein the price adjustment engine modifies a term of the mass price change.
14 . The system of claim 12 , wherein the price adjustment engine generates a waterfall for the deal.
15 . The system of claim 14 , wherein the price adjustment engine applies overrides of the terms to the waterfall for the deal.
16 . The system of claim 13 , wherein the price adjustment engine generates a waterfall for the deal.
17 . The system of claim 16 , wherein the price adjustment engine applies modifications of the terms to the waterfall for the deal.
18 . The system of claim 11 , wherein the price protection term includes a validity range, type, and period, and wherein the type is one of delayed, firm-trough, or rolling.
19 . The system of claim 11 , wherein the price adjustment engine applies further calculates a pocket margin for the adjusted price.
20 . The system of claim 19 , wherein the display further compares the pocket margin for the adjusted price to pocket margin prior to the mass price change.