Additional Pricing Options

Tiered pricing enables different pricing on portions of a schedule and is used with quantity or price formula breaks. The formula breaks should not overlap. Tiered rule pricing is only available for price rules with a Price Action Type of Discount/Surcharge and Price Override.

Consider this example: A price rule and schedule is set up for selling sinks.

Price rule: Sinks Rule 1

Price action type: Discount/surcharge

Rollup flag by: Schedule

Tiered Pricing: Yes

Condition: Product ID = 10050 – 10060 (all of these items are sinks)

Formulas:

The schedule line lists a quantity purchase of 25 sinks. A 5 percent discount will be applied to the first 10 sinks, a 10 percent discount will be applied to the next 10 sinks, and a 20 percent discount will be applied to the remaining sinks. Three pricing schedules are generated for the same order schedule.

Multiple-tiered rules can be applied to the same schedule. Because different price rules use different quantity breaks, the quantities are merged by net price. With a cascading adjustment method, subsequent adjustments are applied to the existing price schedules. Additional pricing schedules are created as needed.

For example, using the price rule created in the previous section, now add an additional price rule:

Price rule: Sinks Rule 2

Price action type: Discount/surcharge

Rollup flag by: Schedule

Tiered Pricing: Yes

Condition: Product ID = 10050 – 10060 (all of these items are sinks)

Formulas:

Based on this tiered rule, a 1 percent discount will be applied to the first 15 sinks, and a 2 percent discount will be applied to the remaining sinks. The quantities and the related adjustments from both price rules are calculated first and then merged by net price.

These are the quantities and related adjustments from the price rule "Sinks Rule 1."

This table lists the quantities and related adjustments for price rule Sinks Rule 2.

Comparing the results from both price rules, Sinks Rule 1 will apply a 5 percent discount to the first 10 sinks, and Sinks Rule 2 will apply a 1 percent discount to the first 10 sinks, which sums to total of 6 percent and results in the same net price. Similarly for the next 5 sinks, Sinks Rule 1 applies a 10 percent discount and Sinks Rule 2 applies a 1 percent discount, for a total of 11 percent discount and the same net price. Grouping the quantity by same net price results in the final pricing schedules shown in this table:

Promotional pricing is used to attract new customers, to encourage customers to try new products, or to liquidate excess inventory. A common promotion is to offer a free or discounted product if the customer purchases a particular product, often called a Buy-One-Get-One or BOGO. Enterprise Pricer enables you create BOGO price rules and also to create price rules that allow the customer to buy one product and get a different product at a discounted rate.

Enterprise Pricer enables you to define complex BOGO and BOGO-like promotions. You can specify the quantity of the giveaway and indicate the discount, surcharge, or price. Sample types of promotional discounts include:

• Buy one of product A, get one of product B free.

• Buy two of product A, get four of product B at a 50 percent discount, and any additional purchases of product B at 10 percent off.

• Buy one of product A, get one of product B at 50 percent discount per line.

• Buy six of product A, get three of product B at 10 percent discount per order.

• Buy five pounds of product A, get 10 pounds of product B at 20 percent off.

Numerous industries have a different ordering unit of measure and pricing unit of measure. For example, paper industry orders are typically by roll. However, the product is priced per hundred-weight (CWT). Enterprise Pricer enables you to order in one unit of measure, such as roll, but define a different pricing unit of measure for the price rule. The pricing engine is able to calculate the item price using a different unit of measure from the order unit of measure. When the order line is processed, the price based on the order unit of measure appears on the sales order page. Pricing results based on the pricing unit of measure appear on the Pricing Detail page.

Achieving pricing goals specific to the needs of an organization is a crucial element to the success of selling products. Achieving pricing goals sometimes requires the ability to define organization-specific formulas that use a series of different operands. Enterprise Pricer enables you to create mathematical expressions in the price rule that are used to calculate the net price for a given product. Thus, you can define complex promotional discounts in which you specify the adjustment, override price, and giveaway quantity using a custom mathematical expression. For example: a 5 percent discount plus a 5 USD discount for all orders of product number 10050 during the ordering period February 1, 2005, to December 31, 2005.

Enterprise Pricer enables you to:

• Define custom mathematical expressions, using the expanded set of pricing operands.

• Use the expanded list of variables known to Enterprise Pricer (net price, list price, and so forth).

• Define pricing variables for use with one or more price rules.

• Cap the mathematical expression calculations, for example, (List Price *.95) or 1000 USD, whichever is smaller.