Combine Block Pricing with Discount Schedules

by Community Manager on ‎12-22-2015 09:57 AM - edited on ‎05-03-2017 12:47 PM by Community Manager

OVERVIEW 

Combine Block Pricing with Discount Schedules so you can apply a volume discount on top of the product’s block price for a particular quantity. For example:

  • A block of 1-500 products have a block price of $50,000 and 501-1000 has a block price of $70,000.
  • If you order 1250 products, you'll pay the last block price tier of $70,000 for the first 1000 units plus a discounted unit price for the additional 250 units.  

CombineBP_DiscSched.png

 

KEY CONCEPTS

Users should be familiar with the following features:

 

WALKTHROUGH

  1. Navigate to your desired product.
  2. Set up your Block Price tiers. Note: You must define an upper bound in the last tier in order to use this feature.ComboBP_DiscSched_DiscSch.png
  3. Create a Discount Schedule that will be combined with your Block Pricing. Discount Schedules are applied after the last block price tier to cover quantities that fall outside the existing tiers.
  4. Add the Discount Schedule you just created to your desired product so that both the Block Pricing and Discount Schedule are enabled. Ensure that overlapping bounds do not exist.ComboBP_DiscSched_DiscSch.png

 

Notes:

  1. The Pricing Method on the product must be set to Block in order to use this feature.
  2. Both Range and Slab schedule types are supported.  Cross-order discount schedules are also supported. 
  3. If both Block Pricing and a Discount Schedule are attached to a Product, and the quantity goes outside the upper bound of both, the total will be zero.
  4. Effective Quantity will be listed as 1 by default.
  5. When creating an Add-On Opportunity, any previous products using the same combined Block Pricing Discount Schedule will be accounted for and used as the base when calculating new tiers and prices.

 

USE CASE

Your organization sells Wireless Routers with a list price of $100 and block pricing at a rate of $2000 for 1-20, $3,750 for 21-40, and $4,250 for 41-60.block prices.png

 

Customers typically do not order quantities much larger than 60, but you want to provide a Discount Schedule to account for customers who order a few units over 60.

 

  1. Create the following Discount Schedule and associate it with the WiFi Router product.disc.png
  2. Create a Quote with 62 routers. This will appear in the Line Editor as $4,420, due to the following calculations:
    • Level 3 Tier = $4250. 2 routers above Level 3 Tier = $200 discounted by 15% = $170. $4250 + 170 = $4420.routers.png
  3. Create a Quote with 67 routers. This will appear in the Line Editor as $4,810, due to the following calculations:
    • Level 3 Tier = $4250. 7 routers above Level 3 Tier = $700 discounted by 20% = $560. $4250 + $560 = $4810.router2.png

 

RELATED ARTICLES

Volume Discounts

Block Pricing

Comments
by npariona
on ‎01-09-2017 06:07 PM

Can this be account specific?  Each account would have thier own Discount Schedule?

by sfdcjames
on ‎06-13-2017 01:03 AM

The screenshot in step 1 shows 66+ are discounted at 10% not the 20% shown in the worked example in step 3.

 

by vay
on ‎08-13-2017 04:52 AM

Hello npariona

 

You can assign a Discount schedule to any particular account by populating the account the discount schedule is connected to. The field 'Account' on the 'Discount Schedule' object facilitates for this functionality.

 

Hope this helps.

 

Regards,

Vay 

by wpessoa
3 weeks ago

You guys really need to make sure that the pictures match the instructions... no matter how simple the topic is.