Specify Volume Pricing

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

Volume pricing describes the scenario where the more that a quantity of a product is increased for a quote, the more the price for each unit of the product decreases. Volume pricing provides an incentive for the buyer to buy more quantities of a product in order to get a lower price. Typically, this scenario is defined by price tiers.

Example:

A produce reseller is using volume pricing with bushels of apples, where:

1-5 bushels of apples are $20.00 each.
6-10 bushels of apples are $17.50 each.
11 or more bushels of apples are $15.00 each.

So if a customer is purchasing 10 bushels of apples, the total cost would be $175.00 (10 x $17.50).

To configure volume pricing for a product entry in Mobileforce CPQ, you must specify the following options for the Price Book entry for the product:

Select Volume 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.

Example:

The produce reseller specifies the following tiers for apple bushels:

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

Volume pricing is different from Tiered pricing (which also has price tiers) in that in Volume pricing, the buyer pays the same price per unit for every unit.

Note:
Since the minimum quantity sold is 1, Volume pricing should always start with a tier that includes 1. All units above the maximum tier are sold for the price specified in that maximum tier.