Multiple-Tiered Pricing Rules
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:
| Formula Range ID | Minimum and Maximum Quantities | Discount |
|---|---|---|
|
1 |
1 to 15 |
1 percent |
|
2 |
16 to 30 |
2 percent |
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."
| Quantity group | Quantity | Discount | Formula |
|---|---|---|---|
|
A |
10 |
5 percent |
1 |
|
B |
5 |
10 percent |
2 |
|
C |
5 |
10 percent |
2 |
|
D |
5 |
20 percent |
3 |
This table lists the quantities and related adjustments for price rule Sinks Rule 2.
| Quantity Group | Quantity | Discount | Formula |
|---|---|---|---|
|
E |
10 |
1 percent |
1 |
|
F |
5 |
1 percent |
1 |
|
G |
5 |
2 percent |
2 |
|
H |
5 |
2 percent |
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:
| Pricing Schedule | Quantity | Discount | Formulas | Quantity Group |
|---|---|---|---|---|
|
1 |
10 |
–6 percent |
–5 percent Sinks Rule 1, Formula ID 1, and –1 percent Sinks Rule 2, Formula ID 1 |
A and E |
|
2 |
5 |
–11 percent |
–10 percent Sinks Rule 1, Formula ID 2, and –1 percent Sinks Rule 2, Formula ID 1 |
B and F |
|
3 |
5 |
–12 percent |
–10 percent Sinks Rule 1, Formula ID 2 and –2 percent Sinks Rule 2, Formula ID 2 |
C and G |
|
4 |
5 |
–22 percent |
–20 percent Sinks Rule 1, Formula ID 3, and –2 percent Sinks Rule 2, Formula ID 2 |
D and H |