Price matrix
Also called pricing matrix, matrix pricing
Reviewed by Dasha ShakovVP Marketing, Proton
Updated
What is price matrix?
A price matrix is an ERP table that sets prices by pairing customer groups with product groups and giving each pair a rule, such as a discount off list. The rule can also be a target margin, and the matrix lets a distributor price thousands of items for thousands of customers without setting each price by hand.
Price matrix example
In one distributor’s matrix, contractors in price class B get 35% off list on fittings and 25% off list on valves, applied automatically on every order line.
Related terms
- List priceList price is the published, undiscounted price of a product, set by the manufacturer in its price book.
- Contract pricingContract pricing is a set of fixed prices agreed with a specific customer for specific items over a set period, after a negotiation, bid, RFP or GPO deal.
- Quantity break pricingQuantity break pricing gives a lower unit price when a customer buys more of an item at once, with the price changing at set quantities called breaks.
- Price overrideA price override is a manual change to the price the ERP calculated for an order line, made to match a competitor, keep a promise or save a sale.
