Specify Tiered Pricing

• Updated on Jun 23, 2023
• Published on Jun 19, 2023
• 1 minute(s) read
• TL
• RS

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.

Example:

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.

{height="" width="850"}

Example:

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