Understanding the Strategy Hierarchy

What is this?

A pricing strategy is a list of steps. When the strategy runs, the steps execute from the top down, one after another, and each step sets a future price on every SKU its selection matches. Because a later step can price a SKU an earlier step already priced, the last step to touch a SKU wins. That single rule is the whole hierarchy - and it is why order is the first thing to get right.

Strategies are hierarchical. General rules first, specific rules below them. The general rules give every SKU a price; the specific rules below override it wherever they apply. That keeps pricing consistent while still allowing exceptions.

The rule, precisely

1. Steps run in the order shown in the Strategy Manager, top to bottom. Inactive steps are skipped.
2. Each step selects SKUs (its saved selection) and applies its action (Set Future Price to ... plus rounding, No Decreases, Min/Max).
3. If a SKU matches several steps, each one sets its price in turn; the last matching step's price is the one that stays. The grid's PSRule column shows that final step; PS Rule History keeps the whole trail.
4. Custom Groups run after every standard step, and SKU Level Exceptions always run last - so an exception beats everything.

A worked example

A hardware store wants: everything at the vendor's retail; the paint department at a 42% margin; one competitive-sensitive line held to the vendor's Level 1; and three SKUs at fixed prices.

A paint SKU is priced by step 1 (retail), then re-priced by step 2 (42% margin) - step 2 wins. A sensitive paint SKU goes through 1, 2 and 3 - Level 1 wins, because step 3 is lower in the list. Put step 3 above step 2 and the sensitive paint SKU would end at the 42% margin instead: same steps, different prices, purely because of order.

Step 1 is broad on purpose. It guarantees every SKU gets a price, so a SKU no specific rule covers is never left blank - and the run's summary can tell you how many SKUs each step finally priced versus merely touched.

Reading order in the manager

• The step list has no sorting - what you see is the execution order.
• Skus shows how many SKUs a step's selection matched on the last run.
• A step high in the list that matches many SKUs but finally prices few is a broad rule doing little more than setting defaults - usually right for step 1, usually wrong anywhere else.

Tips

Name steps for what they decide, not what they select: Paint 42% margin rather than Dept 10.

When a SKU's price surprises you, look at PSRule first - it names the step that set it - then PS Rule History for the steps that were overridden.

Common Questions

Q: Can two steps price the same SKU on purpose? A: Yes - that is how specific rules refine general ones. Just make sure the specific step is below the general one.

Q: Does an inactive step still take part? A: No. Toggle Act off to take a step out of the run without deleting it.

Q: Where do custom groups and exceptions fit? A: After all standard steps; exceptions last of all. See Custom Groups and SKU-Level Exceptions.