Price Sensitivity & Awareness Codes - Margin Master

Margin Master Handbook

Introduction
Part I · Installing
Part II · Introducing the Main Window
Part III · Initial Configuration
Part IV · Customizing the Workspace
Part V · Basic Application Functionality
Part VI · Learning Margin Master
Part VII · Advanced Topics
Part VIII · Updates, Troubleshooting & Help
Appendix
Part VI · Chapter 16 — Analysis and Pricing InputsUpdated 2026-08-27

Price Sensitivity & Awareness Codes

What is this?

Every product in your vendor's catalog carries a classification code that reflects how price-sensitive that item is to consumers. Vendors assign these codes based on market research, consumer shopping behavior, and competitive analysis. In Margin Master, these codes appear in the Pricing Strategy column (for Ace Hardware) or the Awareness Code column (for Do it Best / True Value).

Walk through it in the app: lesson 2025 — Price sensitivity codes. Margin Master can walk you through these steps live: turn on Training / Guide Mode from the Help menu, then type 2025 into the Lessons & Guides box — or ask Margin Master support to run it with you.

Understanding these codes helps you make informed decisions about which products need competitive pricing and which give you more flexibility on margin.

Ace Hardware: Price Sensitivity Codes

One Click Statistics with the Pricing Sensitivity Mix

  1. Store · 2. Current / Future Price · 3. Price level mix · 4. Item Ranking Mix · 5. Pricing Sensitivity Mix

Ace Hardware classifies every SKU with a single-letter Price Sensitivity (PS) code. This code appears in the PS column in the main data grid.

Code Name Description
S Sensitive Highest price sensitivity. These are items consumers actively comparison-shop. Customers know what these items should cost and will notice if your price is out of line. Think batteries, light bulbs, and other commoditized staples.
C Competitive Moderately price-sensitive. Consumers are aware of general pricing but may not know exact prices. Competitive pricing matters, but you have slightly more flexibility than Sensitive items.
N Non-Competitive Low price sensitivity. Consumers are less likely to comparison-shop these items. You have more room to set margins based on your store's needs.
B Blind Minimal price sensitivity. Consumers generally do not comparison-shop these items and are unlikely to know what the "right" price is. These tend to be specialty, niche, or impulse-purchase items.
X Default / Unset The item has no sensitivity classification from Ace. Margin Master treats unclassified items as Blind for analysis purposes.

Note: In Margin Master's analytics (MCStatistics), codes B, X, and Z are all grouped together as "Blind." If you encounter a Z code, it is a system fallback value that also maps to Blind.

How Ace PS Codes Appear in Margin Master

  • Main grid column: "Pricing Strategy" (short label: "PS")
  • OneClick Statistics: The Pricing Sensitivity Mix panel shows the percentage breakdown of your inventory by PS code, weighted by annual cost of goods sold
  • MCStatistics report: Groups codes into four buckets -- Sensitive, Competitive, Non-Competitive, and Blind -- and reports each as a percentage of your total cost-weighted sales

Do it Best / True Value: Awareness Codes

Do it Best and True Value recently integrated their pricing teams and strategies, which resulted in a shift from traditional sensitivity codes to a new Awareness Code system. The underlying concept is the same -- classifying how price-aware consumers are for each product -- but the terminology and scale have changed.

Code Name Description
A Price Sensitive The highest level of consumer price awareness. Shoppers actively know and compare prices on these items. Equivalent in concept to Ace's "Sensitive" classification.
B High Awareness Consumers have strong general awareness of pricing. Not quite as actively comparison-shopped as "A" items, but pricing still matters significantly.
C Moderate Awareness Mid-range awareness. Consumers have some sense of pricing but are less likely to comparison-shop. You have moderate pricing flexibility.
D Low Awareness Consumers have little price awareness for these items. Greater margin flexibility without risking lost sales.
E Commodity Despite the name, these are items where the product itself is so standardized that brand and retailer differentiation are minimal. Pricing can vary, but the classification signals that the product is widely available and substitutable.

How Awareness Codes Appear in Margin Master

  • Main grid column: "Awareness Code" (short label: "AC") -- Margin Master automatically uses this label when your primary vendor is Do it Best
  • OneClick Statistics: Shows the A-E breakdown (plus a Not Assigned (X) row) in the same Pricing Sensitivity Mix panel

Using These Codes in Your Pricing Strategy

You can filter strategy steps by sensitivity or awareness code using the Pricing Strategy condition in the Strategy Manager. For example, you could create a step that targets only "S" (Sensitive) items with a tighter margin, and a separate step for "B" (Blind) items with a wider margin.

When Codes Are Useful

  • Research and analysis: Understanding the sensitivity mix of your inventory helps you see where your margin dollars come from. The MCStatistics and OneClick reports break this down clearly.
  • Broad directional guidance: If you notice your Sensitive items are significantly under- or over-priced relative to the market, the codes help you identify which products need attention.
  • Critical retail compliance: For Ace Hardware stores, Sensitive items are often the ones flagged in Ace's Critical Retail Pricing program. See Ace Critical Retail Pricing for details.

The Pitfall: Shelf Neighbor Problem

Building pricing strategies based solely on sensitivity codes can create visible inconsistencies on your shelves.

Here is the core issue: two similar products sitting side by side on the same shelf may carry different sensitivity classifications. If your strategy applies a tight margin to Sensitive items and a wide margin to Blind items, those two similar products could end up with noticeably different price points -- even though a customer would expect them to be priced consistently.

Example: Two similar drill bit sets sit next to each other. One is classified S (Sensitive) and gets priced at a 30% margin. The other is classified B (Blind) and gets priced at a 45% margin. A customer comparing the two on the shelf sees a price gap that doesn't make sense for nearly identical products.

This happens because sensitivity codes are assigned at the national level based on broad market data. They don't account for how products are merchandised together in your specific store layout.

Sensitivity and awareness codes are best used for research and analysis rather than as the primary driver of your pricing strategy. Here are practical guidelines:

  1. Use codes for reporting, not rules. Review your sensitivity mix in MCStatistics and OneClick to understand your inventory composition. Use that insight to inform your overall pricing philosophy.

  2. Build strategies around product groups and departments. Department- and class-based strategy steps naturally group products that sit together on the shelf, avoiding the neighbor problem.

  3. If you do use codes in strategies, keep it simple. For example, you might add a single step that caps Sensitive items at a maximum margin to stay competitive -- but avoid building an entire multi-step strategy where every step is code-based.

  4. Cross-reference with cost breaks. Combining sensitivity codes with cost break analysis gives you a more complete picture than either tool alone.

  5. Review the results visually. After executing any strategy that uses sensitivity codes, sort by department or class and scan for price inconsistencies among similar products.

Common Questions

Q: Why does my PS column show "X" for some items? A: "X" means Ace has not assigned a sensitivity code to that product. Margin Master treats these as Blind for analysis purposes. This is common for new items or items in transition.

Q: Do it Best used to show different codes. What changed? A: Do it Best and True Value integrated their pricing teams and strategies. The old sensitivity codes were replaced with the new A through E Awareness Code scale. The concept is the same -- it's a measure of how price-aware consumers are -- but the letter values and labels changed.

Q: Can I filter the main grid by sensitivity code? A: Yes. Use the selection panel on the left side of the main window. The Pricing Strategy (or Awareness Code) field appears as a filterable list. You can select one or more codes to narrow the grid.

Q: Do these codes affect which items appear in Ace Critical Pricing? A: Not directly. Ace Critical Pricing compares your prices against Ace's suggested retail, MAP, and IMAP prices regardless of sensitivity code. However, Sensitive items are often the ones most likely to be flagged because they tend to have tighter pricing targets.

Q: My vendor is Orgill or United Hardware. Do I have sensitivity codes? A: Orgill and United Hardware do not currently provide sensitivity classifications through the cloud sync. The Pricing Strategy column will show "Z" (Blind) for these vendors.

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