Tiered pricing describes the scenario where an organization creates multiple tiers for the quantity of a product. When the quantity exceeds each tier, the price of the products within that tier decreases. In Tiered pricing, the price per unit can be different : depending on which tiers are included in the total quantity purchased.
A produce reseller is using tiered pricing with bushels of cherries where:
- 1-5 bushels of cherries are $20.00 each.
- 6-10 bushels of cherries are $17.50 each.
- 11 or more bushels of cherries are $15.00 each.
So if a customer purchased 10 bushels of cherries the price would be $187.50; (5 x $20.00) + (5 x $17.50)
To configure tiered pricing for a product entry in Mobileforce CPQ, you must specify the following options for the Price Book entry for the product:
- Select Tiered as the Method (highlighted in teal below).
- Add two or more pricing tiers for the product:
- In Start Quantity enter the quantity where the tier begins.
- In List Price enter the per unit price for the tier.
The produce reseller specifies the following tiers for cherry bundles:
- Tier 1: Start Quantity is 1.00, List Quantity is $20.00
- Tier 2: Start Quantity is 6.00, List Quantity is $17.50
- Tier 3: Start Quantity is 11.00, List Quantity is $15.00