Automatic Price Linking: Synchronize Your Linked Prices with a Single Click

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Definition

Automatic price linking involves linking the price of a product to that of a pilot product according to a predefined rule, and then allowing the system to automatically reflect any change in the pilot product's price. For example, the price of a family-size package can be linked to that of an individual-size package using a fixed ratio.

The Essentials in 6 Questions

What?

A rule that links the prices of multiple SKUs to a reference price.

Who is it for?

Pricing teams and category managers.

When?

Every time the pilot price is updated.

Where?

Regarding variants: sizes, colors, and scents of the same product.

Why?

Ensure consistency across scales and save time.

How?

Ratio, deviation, or formula, applied by the pricing engine.

Why Automate Price Chaining?

Because a single change in the base price must be accurately reflected across dozens of variants.

  • Ensure consistency in pricing across sizes: the large size must remain less expensive per liter, as the customer expects.
  • Reduce management time: a change to the driver is propagated to all 12 or 30 chained variants.
  • Ensure business rules are followed: scale by format, consistent spacing between sizes, fixed ratio between colors.

Real-life example: a laundry detergent available in three sizes

When the price of the 1-liter bottle goes up to €7.20, the 2-liter bottle automatically goes up to €12.60 and the 5-liter bottle to €27.36.

EXAMPLE CASE · PRICING GLOSSARY

One introductory price, three formats updated at the same time

Laundry detergent · 1 L / 2 L / 5 L sizes, grouped by ratio

7,20 €
1 L · pilot reference
12,60 €
2 L (ratio × 1.75)
27,36 €
5 L (ratio ×3.80)
1 click

to apply the new pilot price to all three formats, without omissions or ratio errors.

Source: Case Study · Booper Pricing GlossaryBOOPER

The rule is simple: 2 L = 1 L × 1.75 and 5 L = 1 L × 3.80. Without a formula chain, these three prices would have to be updated manually, with the risk of omissions or errors in the ratios.

How do you set up automatic chaining?

In four steps, from selecting families to configuring the pricing engine.

1

Identify eligible families

Different sizes, colors, or scents.

2

Select the pilot reference

Ideally, the best-selling item in each product family.

3

Write the rules

A multiplicative ratio, an additive difference, or a more complex formula.

4

Configure the engine

Applied with every update, with traceability for auditing purposes.

By extension, the term also refers to the automatic alignment of equivalent products across catalogs, which falls under product matching (see competitive monitoring and product matching). Both are covered by our product matching, cloning, and chaining solution; the rules are executed within our MPS pricing solution. See also horizontal chaining and vertical chaining.

3 Mistakes to Avoid in Automatic Chaining

A rule that goes against customer logic, one that has never been reviewed or is based on a flawed prototype.

  • Don't just buy the largest size without thinking it through: make sure the large size is actually cheaper per liter.
  • Forgetting to review the rules when purchase costs vary by format.
  • Relying on a secondary driver: a driver who doesn't sell well drags down the whole team.

Frequently Asked Questions

Short answers to the most frequently asked questions about automatic chaining.

What is automatic chaining?

Automatic price linking involves programmatically linking the price of one SKU to that of another SKU according to a predefined rule, and allowing the system to automatically apply the update when the price of the master SKU changes. For example, the price of a family-size item can be linked to that of the individual-size item using a fixed ratio.

Why is automatic chaining useful in pricing?

It ensures price consistency across variants, eliminates the need for manual updates and the errors associated with them, and systematically applies business rules.

What is the difference between manual and automatic chaining?

Manual chaining requires recalculating each variant by hand, which is time-consuming and prone to errors. Automatic chaining applies the rule instantly to all linked references, with a record of each propagation.

What kind of ruler should I use?

A multiplicative ratio when prices must change in proportion (formats), an additive difference when the difference must remain constant, or a more complex formula for special cases.

Key Takeaways

  • Automatic chaining links prices to a reference price based on a rule.
  • It ensures consistency in scale across variants and prevents omissions.
  • The rules are reviewed when costs change, based on a representative pilot project.

Would you like to automatically chain your prices without any manual errors?

Booper applies your chaining rules to your entire catalog on an ongoing basis.

Let's talk about your chaining rules →Discover our product matching solution

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