Awarding Algorithms

The better deal always wins with automatic discounts. For example, if you set both Buy One DVD Get One CD For Free and Buy One DVD Get One Car For Free, the application discounts the price of the car to $0.00 because this is a better deal than receiving a CD for $0.00.

When using automatic discounts, Simphony detects the presence of discountable menu items on a transaction, and then performs algorithms to determine which discounts are applied and which items receive a discount. The following two types of algorithms determine the discount:

Table 13-3 Awarding Algorithms

Awarding Algorithm	Description
Best Deal for Customer	If two discounts can be applied to a check and one yields a higher discounted amount, that discount is said to give the best deal. If two discounts can be applied to a check, and the order in which they are applied yields a different amount, the ordering which gives the customer the highest discount is said to give the best deal. Each automatic discount type provides the best deal for the customer, which means that the workstation scans all menu items and determines the largest discount to apply. In this example, a common best deal scenario is described as follows: A combo discount is configured so any Pants-and-Shirt purchase is $30. If a customer orders a $25 pair of pants and a $20 shirt, the discount is $15: $25 for a pair of pants, $20 for a shirt = $45 The combination price is $30, so the discount is $15. If the customer then orders a $25 shirt, the discount recalculates: $25 for a pair of pants, $25 for a shirt = $50 The combination price is $30, so the discount is $20. In this example, the higher-priced shirt is discounted, so the customer receives a total discount of $20 instead of just $15. This is the calculation for all automatic discounts and you cannot configure it (except for Quantity Threshold Discounts). By default, the POS client considers all menu items on the check and all discounts that can apply, and creates the largest discount possible for the customer.
Best Deal for Merchant	You can configure Quantity Threshold Discounts to provide the best deal for the merchant, which means that the customer receives the lowest possible discount. Some jurisdictions require this configuration.

Awarding Algorithm

Description

Best Deal for Customer

If two discounts can be applied to a check and one yields a higher discounted amount, that discount is said to give the best deal. If two discounts can be applied to a check, and the order in which they are applied yields a different amount, the ordering which gives the customer the highest discount is said to give the best deal.

Each automatic discount type provides the best deal for the customer, which means that the workstation scans all menu items and determines the largest discount to apply. In this example, a common best deal scenario is described as follows:

A combo discount is configured so any Pants-and-Shirt purchase is $30.
If a customer orders a $25 pair of pants and a $20 shirt, the discount is $15:
- $25 for a pair of pants, $20 for a shirt = $45
- The combination price is $30, so the discount is $15.
If the customer then orders a $25 shirt, the discount recalculates:
- $25 for a pair of pants, $25 for a shirt = $50
- The combination price is $30, so the discount is $20.

In this example, the higher-priced shirt is discounted, so the customer receives a total discount of $20 instead of just $15. This is the calculation for all automatic discounts and you cannot configure it (except for Quantity Threshold Discounts). By default, the POS client considers all menu items on the check and all discounts that can apply, and creates the largest discount possible for the customer.

Best Deal for Merchant

You can configure Quantity Threshold Discounts to provide the best deal for the merchant, which means that the customer receives the lowest possible discount. Some jurisdictions require this configuration.

Figure 13-1 Examples of Best Deals for Merchant and Customer

This figure shows examples of the best deals for a merchant and a customer.

Consider this discount: Buy one entree and get a second (of equal or lesser value) for 50% off. The examples show the different calculations of the discount based on the best deal configuration.

In Example 1, the Filet is the most expensive item, so it is the trigger. The Chicken Dinner is more expensive than the Spaghetti, so it is discounted by 50%. The total discount is $7.50.
In Example 2, the Filet is the most expensive item, so it is the trigger. The Spaghetti is the least expensive entree, so it is discounted by 50%. The total discount is $5.00.

Related Topics

Parent topic: Discounts