Target Velocity Pricing
Target Velocity Pricing is for customers who want to protect their inventory or gain an advantage from the demand that a particular SKU has, resulting in profit maximization!
You can now set a target velocity for your SKUs, allowing you to set an initial price that will increase as your target sales velocity is reached. This will protect your inventory and increase your profits. Meanwhile, if the required velocity is achieved, the price of your SKU will gradually increase.
Target Velocity Pricing on Eva
To reach this feature, first hover over the menu on the left side and click Pricing Management. See Figure 1.
Then, go to the Brand Pricing Configuration by clicking on the Pricing Settings button on your preferred SKU’s card. See Figure 2.
You can see the Target Velocity Pricing setting on the popup. See Figure 3.
How to set a Target Velocity Pricing?
When you reach your target velocity goal for the set period, the price will increase at the defined rate percent for the number of unit sales you specify. The parameters in this area can be customized to fit your business needs. Once you check the Target Velocity Pricing, there will be six boxes relevant to the setting that will display. Please see Figure 4 below for the boxes’ explanation.
First and Second Boxes
First, you need to decide whether you want to increase your product’s price or decrease it. Then, Target Velocity; is where you enter the starting price of your product; the increase in the price will occur from this amount. You can choose your minimum price or an amount specified as your initial price.
Third, Fourth and Fifth Boxes
Increase my price by; is the percentage you want to increase/decrease your product. For example, if you enter 10% here, your product’s initial price will increase by 10% after the target velocity is reached.
After achieving; is “x” amount of product you want to set the threshold for TVP to start applying.
For example, if you enter 10 units and 10 days, after reaching 10 units sales for 10 days, your desired target velocity will be reached.
With the last box, you will define the unit interval. If you enter 10 on the last box, this means that your price will increase every time you sell 10 units. The price will continue to rise after each trigger until it reaches the ceiling limit of your maximum price.
When you set the Target Velocity Pricing Option, some pricing options will not work, including dynamic pricing, fixed price, current price, and MAP price.
Your initial price must also be above your minimum price in order to function.
Setting an “N” in the template for this feature will disregard all values shown and turn the feature off.
Make sure you are aware of your “Inventory Protection Trigger” as it will override this function to make sure you do not fully run out of stock. Please, check the Inventory Protection Trigger setting article by clicking here.
Importantly, Target Sales Velocity can be activated only for available in-stock inventory. If your inventory is back-ordered, settings applied in backorder inventory will override all other settings.