Systematic price management: discount policy, wholesale prices and customer segmentation

Managing prices as an integrated system requires combining strategic vision (according to Ph. Kotler) with clear technical implementation in the Torgsoft accounting software. Kotler defines pricing not simply as setting a number on a price tag, but as a flexible tool that includes price adaptation, discriminatory pricing (segmentation), and control over strategy execution.

Below is a step-by-step pricing management structure, where Kotler's theoretical principles are implemented through specific Torgsoft tools.

1. Customer segmentation and differentiated pricing

Kotler's theory. Companies often adjust base prices to account for differences in customer characteristics (differentiated pricing). This makes it possible to maximize profit by offering different prices to different segments (for example, students, pensioners, or wholesalers). It is also important to identify the most profitable customers and focus efforts on them.

Implementation in Torgsoft. The program allows you to divide your customer base into segments and automate work with them:

• Customer types. You can create customer groups (for example, «Retail», «Wholesale», «VIP») and assign them different types of discount cards (fixed discount, cumulative discount, or bonus-based).

• Wholesale and retail prices. You can set both retail and wholesale prices in the product card at the same time. If a customer is assigned the «wholesaler» status, the program will automatically apply the wholesale price for them when their card is scanned.

• VIP customers. For privileged buyers, you can configure VIP status, which allows not only special discounts but also sales on credit (trade credit) with a debt limit set.

• Activity analysis. Using the «Customer Activity Analysis» report, you can identify the customer segment that generates the highest revenue and configure individual terms for them.

2. Price levels and the psychology of pricing

Kotler's theory. Price should take into account not only costs («cost plus markup»), but also the buyer's perception of value and competitors' prices. Kotler also emphasizes pricing psychology: "non-round" endings (for example, 99) are associated with discounts, while prices ending in 0 or 5 are easier to remember.

Implementation in Torgsoft:

• Markup and calculation. You can generate prices automatically by setting a markup percentage on the purchase price. When the purchase price changes, the retail price will be recalculated automatically if the corresponding setting is enabled.

• Currency-based pricing. If the product is imported, you can set the price in a currency equivalent. Torgsoft will automatically recalculate the retail price in hryvnias at the current exchange rate at the time of sale.

• Psychological rounding. To implement a "nice prices" strategy (for example, 19.99 or 20.00), you can set rounding rules in the product type settings: to a whole number, to 5 kopecks, to 10 kopecks, and so on.

• Regional price lists. If you have a chain of stores in different cities with different purchasing power (geographical price adaptation according to Kotler), Torgsoft allows you to set different prices for different accounting centers (stores).

3. Discount system and sales stimulation

Kotler's theory. Discounts are a price adaptation tool used to reward customers for certain actions (early payment, purchase volume, seasonality). However, Kotler warns that unsystematic discounts can devalue the brand and train buyers to wait for sales.

Implementation in Torgsoft. The system allows you to set up discounts so that they work automatically, excluding salesperson discretion:

• Cumulative system. The customer's discount increases automatically depending on the total amount of accumulated purchases. You configure the "discount policy" (transition thresholds), and the system itself moves the customer to a new level.

• Bonus system. Instead of a direct discount, the customer receives bonuses that can be used on future purchases. This corresponds to the customer retention (loyalty) strategy that Kotler writes about.

• Promotions and special offers:

• By quantity. The wholesale price can be activated automatically when purchasing from a certain quantity of units (for example, from 5 pcs.) through the "Wholesale Pricing Policy" option.

• Complex promotions. Setting up promotions such as "1+1=3", "Refer a Friend", birthday discounts, and discounts at certain hours ("happy hours").

• Slow-moving products. Using warehouse analysis, you can identify illiquid stock and apply markdowns or special product discounts to free up working capital.

4. Execution discipline and staff control

Kotler's theory. One of the pricing problems is unauthorized discounts from sales staff that "eat up" the company's profit. Management must control the "net price" (the actual selling price) and prevent abuse.

Implementation in Torgsoft. This is one of the program's strongest features, ensuring strict discipline:

• Access rights restrictions (Roles). You can prohibit salespeople from manually changing the selling price, giving discounts above the set limit, or viewing purchase prices.

• Minimum price control. You can configure the system so that it physically does not allow a product to be sold below cost or below the established minimum markup (for example, cost + 5%).

• Action log. All salesperson actions (price change, item deletion from the receipt, return) are recorded in the log. The owner can review who granted a manual discount and when.

• Scanning instead of manual entry. To avoid fraud (when a salesperson manually enters the code of "their own" discount card), you can configure the system so that the customer's card is accepted only through a barcode scanner.

5. Performance analysis (Feedback)

Kotler's theory. Companies should measure the profitability of their products, segments, and sales channels. It is necessary to analyze the impact of price on sales volume (demand elasticity).

Implementation in Torgsoft:

• Analysis of the impact of price on profit. The report shows how much profit a product generated at a certain price, allowing you to assess demand elasticity.

• ABC analysis. Allows you to classify products according to their contribution to profit (Group A — leaders, C — outsiders), which helps in making decisions about removing a product from the assortment or changing its price.

• Discount usage analysis. Allows you to see which promotions actually work and which only reduce margin without increasing sales, as well as which salespeople abuse discounts.

How to build the system

1. Set up the structure. Create product types with markup rules and rounding.

2. Protect your profit. Set up salesperson roles by prohibiting manual price changes and sales below cost.

3. Segment. Implement discount cards and configure the Discount Policy (cumulative or bonus-based) for customer retention.

4. Stimulate. Use wholesale price thresholds to increase the average receipt value (buy 5 pcs. — get a lower price).

5. Analyze. Regularly review profit reports and ABC analysis to adjust your strategy.