What is negotiation range in SAP CA-FS-PO - Price Optimization for Banking?

SAP Term: negotiation range

• Component: CA-FS-PO

• Component Name: Price Optimization for Banking

• Description: The user-defined percentage of performance that can be sacrificed in order to show how user overrides will affect prices.

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• Key Concepts: 
  Negotiation range is a feature of the SAP CA-FS-PO Price Optimization for Banking component. It allows users to define a range of prices that can be used in negotiations with customers. This range is based on the user's desired profit margin and the customer's willingness to pay. The negotiation range helps users to quickly identify the best price for a given product or service. 
  
  How to use it: 
  To use the negotiation range feature, users must first define their desired profit margin. This can be done by entering the desired margin as a percentage or as an absolute value. Once the margin has been set, users can then enter the customer's willingness to pay into the system. The system will then generate a range of prices that fall within the user's desired profit margin and the customer's willingness to pay. 
  
  Tips & Tricks: 
  When setting up the negotiation range, it is important to consider both the customer's willingness to pay and the user's desired profit margin. If either of these values is too low, it may result in an unprofitable transaction. Additionally, it is important to remember that the negotiation range is only a starting point for negotiations and that further adjustments may be necessary in order to reach an agreement. 
  
  Related Information: 
  The negotiation range feature is part of SAP CA-FS-PO Price Optimization for Banking component. This component also includes features such as price optimization algorithms, customer segmentation, and pricing analytics. These features can help users optimize their pricing strategies and maximize their profits.