1. Using Procurement
  2. Respond to Price Breaks

Respond to Price Breaks

Price breaks are reductions in the price of an item depending on certain conditions such as purchasing in bulk or from a certain location.

For example, a seller might ask a certain price for a purchase of up to nine cases of widgets but offer a lower price for a purchase of more ten or more cases. Price breaks can be cumulative or noncumulative. Noncumulative price breaks apply only to quantity bought on a single release against the agreement. Cumulative price break amounts accumulate over the life of the agreement. The category manager can choose to allow the supplier to modify the existing price breaks, including even offering new price breaks.

In this scenario, the category manager for Vision corporation has defined a negotiation to renegotiate an existing catalog with Office Supplier's Inc., one of the company's suppliers. Since this is a purchasing agreement outcome, the negotiation contains price breaks on many of the lines. The category manager has chosen to allow the supplier to modify or offer different price breaks. The price breaks are cumulative over the life of the agreement.

James Ng, Office Supplies Inc.'s customer service representative for the Vision account, responds to the negotiation, including responding to the price breaks.

Respond to Price Breaks

  1. After viewing the Overview and Requirements pages (if present) and accepting the terms and conditions, he accesses the negotiation line by clicking the Lines train stop at the top of the Overview page.

  2. He enters all the appropriate negotiation line information and then notices the icon under the Required Details for one of the negotiation lines. He clicks the icon to access the Lines: Edit Line page.

  3. He sees that the line has additional requested information to which he should respond. This information could include price breaks, price tiers, cost factors, and line attributes. For this line, there are price breaks. He views the price breaks suggested by the buyer and replies with the price his company offers.

  4. When finished, he clicks Save and Close to continue responding to the negotiation.