Attribute-based pricing calculates or selects a price from characteristics of the configured product, customer, transaction or service. The attributes can affect a base price, adjustment, eligibility rule or approval requirement.
Which attributes can affect price?
- Material, size, grade or performance specification
- Customer segment, location or contract
- Quantity, lead time and delivery terms
- Service level, warranty or support tier
- Currency, channel and effective date
How is the price calculated?
A common structure is base price + attribute adjustments − eligible discounts. Suppose an illustrative product has a $500 base price, a $75 stainless-steel adjustment, a $40 expedited-lead-time adjustment and a $30 contract discount. The resulting price is $500 + $75 + $40 − $30 = $585, before tax and freight.
Attribute-based vs. rules-based pricing
Attribute-based pricing identifies the data that affects price. Rules-based pricing defines the conditions and calculations applied to that data. In practice, a pricing engine uses both: attributes provide inputs and rules determine the outcome.
What controls are needed?
Use governed attribute definitions, effective dates, currencies and precedence rules. Test combinations that conflict or produce missing values, and record the inputs used for each quotation so the result can be reproduced.
