Creating an Offer Matrix: Automating Your Pricing Strategy

Audience: Starter Merchants, Core Lenders, Implementation Leads

Topic: Decisioning & Offer Logic

Overview

In PayPlan, the Offer Matrix is the "brain" behind your automated approvals. It transforms your business rules into real-time offers for your customers.

Instead of manually calculating every deal with a calculator, you provide us with a structured pricing model, usually a simple spreadsheet, and we program the system to do the math for you.

Whether you are a furniture store offering Lease-to-Own agreements or a lender providing installment loans, the offer matrix ensures every customer gets the right deal, instantly and consistently.

1. Why Use an Offer Matrix?

For a Store Owner, the matrix allows you to stop guessing. You don't have to call a manager to ask, "Can I approve this guy for $2,000?" The system tells you immediately based on the rules you set.

For a Lender, the matrix enforces your credit policy. It ensures that a risky applicant never gets a "Prime" rate by mistake, keeping your portfolio profitable and compliant.

Key Benefits:

• Speed: Decisions happen in seconds, not minutes.

• Consistency: Every customer with the same profile gets the exact same offer.

• Scalability: You can open 10 new locations, and they will all follow the same rules without you needing to train new staff on underwriting.

2. Planning Your Strategy

Before we build anything, you need to decide how you want to price your risk. This doesn't have to be complicated.

Simple Questions to Ask:

• Who qualifies? Do you have a minimum credit score? Do they need to make at least $2,000/month?

• What changes? Does a better credit score get a longer term (e.g., 24 months)? Does a higher income get a higher spending limit?

• One offer or many? Do you want to give the customer a choice? (e.g., "Pay in 12 months for $200/mo OR pay in 6 months for $380/mo").

Example Matrix Structure (Simple)

This format is all we need to get started. You can make it as simple or as complex as your business requires.

3. How We Build It For You

You don't need to be a coder. PayPlan manages the technical configuration for you.

1. Submit Your Logic: You send us your rules in an Excel or Google Sheet.

2. System Configuration: Our implementation team translates your spreadsheet into the PayPlan Decision Engine.

3. Validation: We run test applications to make sure the system behaves exactly like your spreadsheet.

4. Launch: Once you approve the test results, we push the logic live.

This "Done-For-You" model ensures your rules are configured correctly without you needing to learn complex software logic.

4. Strategic Use Cases

The "Risk-Based" Retailer

• Scenario: A mattress store wants to approve everyone, but protect themselves against risk.

• Strategy: They set up a matrix where customers with low credit scores pay a higher down payment, while customers with high scores pay $0 down.

The "Choice-Driven" Lender

• Scenario: An installment lender wants to give borrowers flexibility.

• Strategy: The matrix generates three simultaneous offers for every approved applicant: a Short-Term (cheapest total cost), Mid-Term, and Long-Term (lowest monthly payment) option. The customer picks what fits their budget.

The "Manual Review" Safety Net

• Scenario: You want automation, but you still want to double-check risky deals.

• Strategy: The matrix generates a "Suggested Offer," but the system pauses for a Manager to review it before showing it to the customer.

5. Troubleshooting Common Issues

If the system isn't generating the offer you expect, check these common reasons before calling support.

Need to Update Your Pricing?

Markets change, and so should your strategy. If you want to raise your prices, lower your risk thresholds, or add a new product:

Contact your Implementation Manager. Send us your updated spreadsheet, and we can adjust your matrix logic, usually within 48 hours.