What is price protection in SAP IS-HT-DRM - Distributor-Reseller-Management?

SAP Term: price protection

• Component: IS-HT-DRM

• Component Name: Distributor-Reseller-Management

• Description: Provision of a guaranteed price of stock. If a manufacturer/supplier reduces the price of materials already sold to a distributors/reseller, the stock in the distributor/reseller's inventory is eligible for compensation. Price protection may be applied to just a specific period of time. A distributor/reseller may also initiate this process.

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• Key Concepts: 
  Price protection is a feature of the IS-HT-DRM Distributor-Reseller-Management component of SAP. It allows companies to protect their prices from being undercut by competitors by setting a minimum price for their products. This ensures that the company's products are not sold at a lower price than what they have set, thus protecting their profits.
  
  How to use it: 
  To use price protection, companies must first set a minimum price for their products in the IS-HT-DRM Distributor-Reseller-Management component of SAP. Once this is done, the system will automatically enforce the minimum price and prevent any resellers from selling the product at a lower price. This ensures that the company's profits are protected from being undercut by competitors.
  
  Tips & Tricks: 
  When setting a minimum price for your products, it is important to consider the market conditions and your competitors' prices. Setting a minimum price that is too high may result in fewer sales, while setting it too low may result in your profits being undercut by competitors. It is important to find the right balance between protecting your profits and ensuring that your products remain competitively priced.
  
  Related Information: 
  The IS-HT-DRM Distributor-Reseller-Management component of SAP also includes features such as product bundling, customer segmentation, and loyalty programs. These features can help companies maximize their profits and ensure that their products remain competitively priced in the market.