Price lists can be used to implement many pricing models. You can use volume pricing to set the price of a product based on the number of items purchased. Bulk and Tiered pricing are two styles of volume pricing.
Bulk pricing calculates the price of a product based on the total quantity ordered. In the following example, hammers are priced at $20 each when you buy 1 to 10 hammers, $17 each when you buy 11 to 20 hammers, and $15 each when you buy 21 or more hammers.
Number of Hammers Purchased | Bulk Price per Item | Bulk Price Total |
---|---|---|
7 hammers | 7 hammers @ $20 each | $140 |
14 hammers | 14 hammers @ $17 each | $238 |
23 hammers | 23 hammers @ $15 each | $345 |
Tiered pricing calculates the price of a product using fixed quantity or weight at different pricing levels. In the following example, hammers are priced at $20 for the first 10 purchased, $17 each for the next 10 purchased, and $15 each for any additional hammers.
Number of Hammers Purchased | Tiered Price per Item | Tiered Price Total |
---|---|---|
7 hammers | 7 hammers @ $20 each | $140 |
15 hammers | 10 hammers @ $20 each | $285 |
23 hammers | 10 hammers @ $20 each | $415 |