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Key Value Item (KVI) Segmenting

One tool for your whole company. Free for teams to try.

Categorise your products into KVI products and non-KVI products as separate groups. (If you are unsure of your KVI products, you can speak to our team! )

Create a pricing strategy for your KVI products that reduces their price and appropriate business rules and notifications. This could also include promotions or discounts to lower prices and encourage buying.

Create a separate pricing strategy for non-KVI products, increasing their prices and maximising margin. You can now export these prices and sell them separately OR bundle items together

Apply based on price elasticity

Elasticity refers to how sensitive customer demand is to changes in price. Using price elasticity, our team can identify your KVIs. Your least price elastic products are likely to be your Key Value Items.

Apply margin pricing across product categories

You can add discounts and promotions to entice customers to enter your store and buy a larger volume of KVI products.

Use in combination with competitor prices

Use KVI products to get a competitive advantage. Attract customers into your store with lower prices than your competitors and make up the difference in lost margin on non KVI products.

KVI Pricing for a Clothing Store

A supermarket chain has determined that pricing their milk at a low price is more likely to get customers to walk into their stores. Therefore, they use SYMSON to categorise milk as a KVI product. They can now price milk lower than other chains. Even if they do not make margin on milk, they can now raise prices on other non KVI products in store using SYMSON’s pricing engine.When a customer walks, they are more likely to buy other products. Therefore the basket value increases and the overall margin is maintained through other non-KVI products

KVI Pricing for an Electronics Store

An electronics store using SYMSON has determined that wireless headphones are a KVI and are highly price elastic. During peak shopping seasons like Black Friday or Christmas, the retailer uses SYMSON to set significant discounts on wireless earbuds to attract holiday shoppers and drive higher sales volumes. At the same time, they increase prices on other non KVI products to maintain overall margin and drive up basket value.

Categorise your products into KVI products and non-KVI products as separate groups. (If you are unsure of your KVI products, you can speak to our team! )

Read More

Create a pricing strategy for your KVI products that reduces their price and appropriate business rules and notifications. This could also include promotions or discounts to lower prices and encourage buying.

Read More

Create a separate pricing strategy for non-KVI products, increasing their prices and maximising margin. You can now export these prices and sell them separately OR bundle items together

Read More

Margin pricing calculates the selling price based on a predetermined margin percentage.  

HOW TO USE KVI SEGMENTING

SYMSON can use Margin pricing in combination with the cost-based pricing strategy to keep a minimum margin intact. This block adjusts the SYMSON price such that the minimum margin requirements are met even when the cost price increases or prices need to be lowered.

Apply based on price elasticity

Elasticity refers to how sensitive customer demand is to changes in price. Using price elasticity, our team can identify your KVIs. Your least price elastic products are likely to be your Key Value Items.

Read More

Apply margin pricing across product categories

You can add discounts and promotions to entice customers to enter your store and buy a larger volume of KVI products.

Read More
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Key Value Item (KVI) Segmenting

One tool for your whole company. Free for teams to try.

Pricing Strategy
KVI Segmenting

Margin pricing calculates the selling price based on a predetermined margin percentage.  

HOW TO USE KVI SEGMENTING

SYMSON can use Margin pricing in combination with the cost-based pricing strategy to keep a minimum margin intact. This block adjusts the SYMSON price such that the minimum margin requirements are met even when the cost price increases or prices need to be lowered.

PRICING LOGIC

Categorise your products into KVI products and non-KVI products as separate groups. (If you are unsure of your KVI products, you can speak to our team! )

Create a pricing strategy for your KVI products that reduces their price and appropriate business rules and notifications. This could also include promotions or discounts to lower prices and encourage buying.

Create a separate pricing strategy for non-KVI products, increasing their prices and maximising margin. You can now export these prices and sell them separately OR bundle items together

Elasticity refers to how sensitive customer demand is to changes in price. Using price elasticity, our team can identify your KVIs. Your least price elastic products are likely to be your Key Value Items.

You can add discounts and promotions to entice customers to enter your store and buy a larger volume of KVI products.

Use KVI products to get a competitive advantage. Attract customers into your store with lower prices than your competitors and make up the difference in lost margin on non KVI products.

A supermarket chain has determined that pricing their milk at a low price is more likely to get customers to walk into their stores. Therefore, they use SYMSON to categorise milk as a KVI product. They can now price milk lower than other chains. Even if they do not make margin on milk, they can now raise prices on other non KVI products in store using SYMSON’s pricing engine.When a customer walks, they are more likely to buy other products. Therefore the basket value increases and the overall margin is maintained through other non-KVI products

An electronics store using SYMSON has determined that wireless headphones are a KVI and are highly price elastic. During peak shopping seasons like Black Friday or Christmas, the retailer uses SYMSON to set significant discounts on wireless earbuds to attract holiday shoppers and drive higher sales volumes. At the same time, they increase prices on other non KVI products to maintain overall margin and drive up basket value.

How to Apply KVI Segmented Pricing

SYMSON’s versatile pricing engine allows you to combine KVI segmented pricing with other pricing strategies and/or across different product groups. Here are just a few of the many possibilities

  • Categorise your products into KVI products and non-KVI products as separate groups. (If you are unsure of your KVI products, you can speak to our team! )

  • Create a pricing strategy for your KVI products that reduces their price and appropriate business rules and notifications. This could also include promotions or discounts to lower prices and encourage buying.

  • Create a separate pricing strategy for non-KVI products, increasing their prices and maximising margin. You can now export these prices and sell them separately OR bundle items together

  • Apply based on price elasticity

    Elasticity refers to how sensitive customer demand is to changes in price. Using price elasticity, our team can identify your KVIs. Your least price elastic products are likely to be your Key Value Items.

  • Apply margin pricing across product categories

    You can add discounts and promotions to entice customers to enter your store and buy a larger volume of KVI products.

  • Use in combination with competitor prices

    Use KVI products to get a competitive advantage. Attract customers into your store with lower prices than your competitors and make up the difference in lost margin on non KVI products.

  • KVI Pricing for a Clothing Store

    A supermarket chain has determined that pricing their milk at a low price is more likely to get customers to walk into their stores. Therefore, they use SYMSON to categorise milk as a KVI product. They can now price milk lower than other chains. Even if they do not make margin on milk, they can now raise prices on other non KVI products in store using SYMSON’s pricing engine.When a customer walks, they are more likely to buy other products. Therefore the basket value increases and the overall margin is maintained through other non-KVI products

  • KVI Pricing for an Electronics Store

    An electronics store using SYMSON has determined that wireless headphones are a KVI and are highly price elastic. During peak shopping seasons like Black Friday or Christmas, the retailer uses SYMSON to set significant discounts on wireless earbuds to attract holiday shoppers and drive higher sales volumes. At the same time, they increase prices on other non KVI products to maintain overall margin and drive up basket value.

KVI Segmented Pricing in Practice

Categorise your products into KVI products and non-KVI products as separate groups. (If you are unsure of your KVI products, you can speak to our team! )

Create a pricing strategy for your KVI products that reduces their price and appropriate business rules and notifications. This could also include promotions or discounts to lower prices and encourage buying.

Create a separate pricing strategy for non-KVI products, increasing their prices and maximising margin. You can now export these prices and sell them separately OR bundle items together

Apply based on price elasticity

Elasticity refers to how sensitive customer demand is to changes in price. Using price elasticity, our team can identify your KVIs. Your least price elastic products are likely to be your Key Value Items.

Apply margin pricing across product categories

You can add discounts and promotions to entice customers to enter your store and buy a larger volume of KVI products.

Use in combination with competitor prices

Use KVI products to get a competitive advantage. Attract customers into your store with lower prices than your competitors and make up the difference in lost margin on non KVI products.

KVI Pricing for a Clothing Store

A supermarket chain has determined that pricing their milk at a low price is more likely to get customers to walk into their stores. Therefore, they use SYMSON to categorise milk as a KVI product. They can now price milk lower than other chains. Even if they do not make margin on milk, they can now raise prices on other non KVI products in store using SYMSON’s pricing engine.When a customer walks, they are more likely to buy other products. Therefore the basket value increases and the overall margin is maintained through other non-KVI products

KVI Pricing for an Electronics Store

An electronics store using SYMSON has determined that wireless headphones are a KVI and are highly price elastic. During peak shopping seasons like Black Friday or Christmas, the retailer uses SYMSON to set significant discounts on wireless earbuds to attract holiday shoppers and drive higher sales volumes. At the same time, they increase prices on other non KVI products to maintain overall margin and drive up basket value.