Velve Pricing

The Problem

Global e-commerce was primarily designed around stocked goods, where the price list consists of a lengthy inventory of SKUs accompanied by their respective prices. Need more lists for different foreign markets? A column is added to the DB. Do you need promotions? With an "if / then" you apply a discount when specific conditions are met.

However, highly customised goods, such as a significant portion of the furniture industry, necessitate alternative solutions. This is why we developed Velve Pricing, a solution for the global management of pricing for just-in-time produced goods.

In the case of such goods, the price list is no longer a simple compilation of SKUs. The potential configurations can extend into the millions, requiring a product configurator to determine the reference price for each created configuration, whether in the form of a list price or net price.

The Solution

Velve Pricing utilizes the reference price as a basis and applies transformations based on various factors such as user class, ticket, currency, taxation, display country, shipping country, and collection.

The typical user of Velve Pricing is a company operating on e-commerce platforms, whose existing pricing systems prove insufficient to meet the challenges posed by highly customised goods.

The sales department is equipped with a set of multipliers that enable comprehensive margin management. These multipliers account for factors such as overall margin, exchange rate-related costs, commercial and logistical costs specific to local markets, collection-specific requirements, applicable price lists, minimum advertised price, and time-sensitive promotions. With Velve Pricing, it takes just seconds to make global adjustments to each component and lever of the sales price, thereby influencing the margin.

General Functionality

sales prices can be calculated based on either the list price or the net purchase price
a general multiplier can be applied to all prices, allowing for quick updates to the brand's pricing policy within 5 seconds
a currency management module to enable the activation of foreign currencies and automatic adoption of the official exchange rate (with an option to mitigate exchange rate risks) or manual input of exchange rates
management of Premium Discount activation thresholds (quantity discounts)
Customer Classes can be defined with customised prices, along with the application of minimum order requirements, Premium Discounts, and Minimum Advertised Price (MAP)

Country Management

Each country in the world can be configured with specific settings, including:

Standard, Temporary, and Logistics Costs multipliers
minimum order requirements
automatic VAT management for individuals and companies
the option to enable Premium Discounts and local currency
geographical price management based on shipping or location criteria

Managing Collections

For each collection created, the system allows the definition of:

sale prices for each country
list prices for each country
Minimum Advertised Price (MAP) for each country

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