Price Breaks and Price Tiers

Quantity-based price tiers and price breaks allow you to negotiate line prices with your supplier based on characteristics of your order.

For example, with both price tiers and price breaks, you may expect to receive a discount from your supplier if you buy a large quantity of units, and you may specify several quantity levels and the prices you're willing to pay at each. Or by negotiating using price breaks, you may additionally choose to pay more per unit if your supplier can ship the order to a special location or by a certain deadline.

You can define two types of price adjustments for a negotiation document: quantity-based price tiers and price breaks. If tiers or breaks are defined, suppliers must reply by entering prices, or modifying the tiers or breaks (if the negotiation creator allows price break modifications). If there are no tiers or breaks defined, the supplier can add tiers or breaks. You can only use quantity-based price tiers or price breaks if the negotiation style you're using allows them.

Quantity Based Price Tiers

Quantity-based price tiers apply only to the quantity of units for your negotiation line. You can add quantity-based price tiers to all negotiations regardless of negotiation outcome. Suppliers can respond to the defined price tiers, modify or delete the defined price tiers, or add their own. For quantity-based price tiers, only the price tier in effect for the awarded line is passed to the purchasing application.

Price Breaks

You can specify price breaks for a location, a date range, and quantity. You can allow suppliers to modify and offer different price breaks. Price breaks can only be used with purchase agreements. For price breaks, the information about the entire price break structure applicable to the awarded line is passed to the purchasing application.