Pricing Administration Guide > Creating Volume Discounts >

About Volume Discounts

A volume discount is an adjustment to the price of a product based on the quantity of that product in the quote line or order line item.

When you define a volume discount, you select one of two discount methods:

• Simple. This method applies the same discount to every line item. The discount for all items depends on the total quantity of that item purchased.
• Tiered. This method applies the discount defined by each Volume Discount Line Item record to the quantity of items defined in that Volume Discount Line Item record.

For example, you create a volume discount with line items that:

• Apply a 10 percent discount when the quantity is five to 10 items
• Apply a 20 percent discount when the quantity is 11 to 20 items
• Apply a 30 percent discount when the quantity is 21 items or more

If this is a simple volume discount, and if the customer buys 23 items, the customer gets a discount of 30 percent on all 23 items.

If this is a tiered volume discount, and if the customer buys 23 items, the customer gets no discount on items one to four, a 10 percent discount on items five to 10, a 20 percent discount on items 11 to 20, and a 30 percent discount on items 21 to 23.

Volume discounts apply to the quantity in the quote line or order line, not the total quantity in the entire quote or in an entire order. If a user splits an order for a product into two or more lines on a quote, the volume discount calculation for that product is not based on the total of the two lines. However, you can configure the application to base volume discounts on multiple line items, as described in Volume Discounts Across Line Items.

The volume discount applies to the start price after attribute pricing and customizable product pricing adjustments have been applied.

NOTE:  If you use volume discounts with other types of price adjustments, the final price depends on the order in which Siebel Pricer applies the pricing adjustments. For more information, see About the Processing Order of Price Adjustments.