What is reverse price protection in SAP CRM-CHM - Channel Management?

SAP Term: reverse price protection

• Component: CRM-CHM

• Component Name: Channel Management

• Description: Used for cases where the manufacturer has increased the price of materials already sold to a distributor or channel partner. Here a price protection run detects such a price increase, and a record is generated with status 'Not Eligible'. When working with the enhanced mode for price protection, reverse price protection can be run in the same way as a normal price protection.

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• Key Concepts: 
  Reverse price protection is a feature of SAP CRM-CHM Channel Management that helps protect the prices of products and services from being undercut by competitors. It allows companies to set a minimum price for their products and services, and if a competitor offers a lower price, the company can adjust their own prices accordingly. This helps ensure that the company remains competitive in the market. 
  
  How to use it: 
  Reverse price protection can be enabled in SAP CRM-CHM Channel Management by setting a minimum price for each product or service. This minimum price will be monitored by the system, and if a competitor offers a lower price, the system will alert the company so they can adjust their own prices accordingly. 
  
  Tips & Tricks: 
  When setting up reverse price protection, it is important to consider the current market conditions and pricing trends. This will help ensure that the minimum prices are set at an appropriate level that will help protect the company’s profits without pricing them out of the market. 
  
  Related Information: 
  Reverse price protection is just one of many features available in SAP CRM-CHM Channel Management. Other features include customer segmentation, loyalty programs, and automated marketing campaigns. All of these features can help companies better manage their customer relationships and maximize their profits.