Volume Discounts and Bracketed Pricing

The Special Pricing module is used to give customers discounts based on the volume of product purchased within a single line of a sales invoice. Bracketed pricing within EBMS can be based on the quantity being purchased by the customer or the total value of the product purchased. Complete the following steps to create bracketed or volume pricing.

  1. Open an inventory item and click on the Pricing tab as shown below:

  2. Click on the Special Pricing button to open the following dialog:

  3. Click on the New button to create the first bracketed pricing.

  4. Enter the information for the first level of bracketed pricing.

    1. Enter a brief Description to visually identify the pricing.

    2. Select the Applies to price level option that contains the bracketed pricing. Note that the [All] option can be used if the bracketed pricing is the same for all price levels. A separate special pricing record should be created for each price level if each price levels contains a discount or bracketed pricing.

    3. Set the Applies to unit of measure setting. Select the [All] to apply to all unit of measure settings. Review the Tracking Counts > Unit of Measure for more details on unit of measure.

    4. The Dates option should be set to Always unless the bracketed pricing is only valid for a specific period of time. Review the Promotional Prices based on Date section for more details on limiting the special pricing time period.

    5. Set the Minimums option to identify the minimum amount of product that needs to be purchased to qualify for the special price set within the Calculation settings. Enter a Count quantity if the new price is applicable when the quantity of the sales order reaches the Minimum Count. Enter a Dollar Amount if the threshold is set by a value rather than quantity.
      Note:  Only a single Minimums option can be set on special pricing record. The Dollar Amount entry must be blank if the Count value is populated. The Count value must be blank if the Dollar Amount minimum is used.

    6. Enter the price Calculation. Select the Calculate From option if the price is calculated from a formula and not a fixed price. Select a Formula if the price is calculated from the Calculate From option. The formulas work the same as the price level formulas within the pricing tab of the item. Some of the following options can be used:
      1. Select the Is $______ Formula option to set a fixed price and enter the fixed price into the template. Example: Is $_12.95

      2. Select the Equal To option to set the price to equal the price level, cost, or base price within the Calculate From options.

      3. Select Add ___ % and enter -10 to give a 10% discount if the user purchases a quantity of the product. Note that the discounted price will be rounded using the rounding table settings.

  5. Click the OK button to save the special pricing record. Repeat the steps for additional pricing brackets.

  6. The order of the special order records is very important if the bracketed pricing consists of multiple levels as show below:

The quantity discounts MUST be listed in descending order as shown above. The largest minimums must be listed on the special pricing list first. The bracketed pricing will not function properly if the records are in reverse order. Review the Prioritizing Special Pricing for more details on ordering special pricing records.

Note: Bracketed or volume pricing is always based on a single line of the invoice. Volume pricing cannot be based on the combination of lines within a sales order. Sales order lines containing the identical inventory item can be combined by setting the combine lines when duplicate items are entered option to Ask to or Always. Go to Sales > Options and open the Invoices and S.O.s tab to view or change option as shown below: