Unified Grocers Corporate Retail Pricing system utilizes a Rules Based pricing program built around the NCR HQ pricing system, generating both Regular and TPR retails. We generate Base Zone retails using a regional lead Chain Competitor target with incremental plus and minus zones.
Regional Pricing Rules:
System maintained Family Group relationships.
Private Label / National Brand Gap management.
Goal is to have the Private Label (PL) item linked to the appropriate National Brand (NB) item with a big enough gap to encourage PL sales while also showing a better Penny Profit than the NB item.
Regular retails are generated based on
Vendor cost changes (maintain margin).
Regional lead competitor change (align with competition).
Competitive surveys are on a 6 week rotation covering all Unified items / commodities that the competitor carries.
Top tier sensitive items surveyed every other week.
+ & - Zones with rounding to 5 & 9, 4 & 8, or 9’s only. Under $1.00 rounds to 3, 5, 7, &9. Base and plus zones round up and minus zones round down.
TPR’s (Temporary Price Reductions) are generated based on:
80 % pass through ($1.00 allowance goes to Unified customer and a $0.80 reduction of their retail goes to their customer).
TPR’s must have a minimum savings of $0.04.
TPR’s must have a minimum of two weeks shelf life.
TPR’s round down to 5 & 9 except for those under $1.00 which round down to 3, 5, 7, & 9.
TPR’s run for the full length of the deal.
This process results in increased margin $’s and increased sales over the regular priced item.
Unified has three tiers of Sensitive items which allow our customer to set their Base Zones at a higher level yet select a more competitive zone for the Sensitive items.
Customers can utilize the Base and Incremental rules at the Type Business (TB), Department, or Category level. TB might equal Grocery, but Dept might be Cigs, Tobacco, Specialty, or Hispanic.
We have three Custom Price options for our customer to utilize, with on-demand and weekly automated reports to help manage them.
Locked Custom: Target Margin resulting from a custom price is maintained if there are cost changes in the future. We also generate a TPR based on the custom price instead of the Zone price.
Manual Custom: Customer maintains all changes on the regular retail once a custom price has been set. System will generate a TPR based on the custom price instead of the Zone price.
EDLP Custom: Customer maintains all changes on the regular retail once a custom price has been set. No TPR generation.
Our on demand Custom Report shows all items that a store has a custom retail on along with the corresponding Zone Retail and the Custom Rule.
Our weekly report is emailed to the store showing items that the store has a custom price on and the Base Zone has had either a cost or competitive change on that week.
DSD Pricing (Direct Store Delivery):
Store specific DSD pricing is currently available in the Oregon, Washington, and Southern California regions.
Unified provides you with files based on your store specific cost, retails and TPR’s. The store determines the TGM, Rounding Rules, TPR pass through by DSD commodity and Unified manages it for you based on updated vendor information.
This allows the store to do back door receiving with their current effective cost and maintain their DSD margins and promotions based on their competitive situation.