Create a Product Volume Discount
Volume discount refers to offering discounted prices to incentivize a customer or a reseller to purchase a product or service at one go. When a customer purchases a product in multiple units or a large enough quantity at once, you may want to reward them by offering a reduced price for each group of products or services purchased. This section guides you in creating, managing and deleting volume discounts to products and product lists.
Creating a Product Volume Discount
The interworks.cloud platform provides a user-friendly and quick way to create a new product volume discount. You just need to follow these steps:
Log in the BSS module and enter the Set-Up mode by clicking on the Setup option in the top right corner of your screen.
From the left-hand side main menu bar, navigate to Products
Click on the Volume Discounts option.
Click on Add to add a new volume discount.
Give your new volume discount a name by filling in the mandatory field.
Select the tiered approach you wish to apply to your volume discount. There two options available:
Apply tiers in scale mode (tiered pricing): this option allows you to define a price per unit within a range. Tiered pricing works so that the price per unit decreases once each quantity within a “tier” has been sold.
Apply tiers in continuous mode (volume pricing): by contrast, applying tiers in a continuous mode (i.e. volume pricing) defines a price for all units within the range.
Click Save or Save & Close to save your volume discount successfully.
To illustrate, imagine that you have defined the following price tiers for a particular software:
The first 1-20 seats would cost, say, $10 each.
The next 21-30 seats would cost $8.50 each.
The next 31-40 seats would cost $7 each etc.
Now, if we assume that a customer purchases 33 seats, they would have to pay the following price:
Under the tiered pricing model: (20 seats X $10) + (10 seats X $8.50) + (3 seats X $7) = $306
Under the volume pricing model: 33 seats X $7 = $231.
Note: you have to check the Active Volume Discount option to be able to apply the volume discount on specific products or product lists.
Now that you have saved your volume discount, you need to define the applicable tiers. The system prompts you to do so by showing the Tiers functionality:
Click on Add to start adding tiers
In the pop-up window, define the range of the tier (From, To) and the discount rate (Rate (%)) that applies to that Tier.
Repeat until you have defined all your tiers and the applicable discount rates.
Click Save to save the Tier or Cancel to cancel it.
Applying Volume Discount to a Product
Once you have created your volume discount, you need to apply it to the products it has been designed for. To do this, from the BSS module, you need to take the following steps:
Find the product you need and scroll down to the Pricing section.
Click on Edit… to activate the editing mode.
In the Edit Prices pop-up window, go to the Volume Discount field. The drop-down list should display all the volume discounts you have created so far.
Choose the volume discount you wish to apply.
Click Save to save your changes.
Applying Volume Discount to a Price List
Volume Discounts can be applied not only to particular products but also to products within price lists. This allows you to apply specific volume discounts only for the customers of a particular price list. This section navigates you how to apply volume discounts to price lists:
When the Product is already included in the Price List
Find the product you need and scroll down to the Price List section where you can obtain an overview of all the price lists this product belongs to.
Click on Edit on the left side of the price list you want to add a volume discount to.
At the Edit Item pop-up window, go the Volume Discount field and select the volume discount that you want to apply (it should appear in the drop down list).
Click Save to save your changes.
When you need to add a new or existing Product in the Price List
If you need to add a new or existing product to the price list and to apply the volume discount to it, you need to follow these steps:
As previously, find the price list that will be subject to volume discount.
Scroll over the number in brackets to reveal the assigned price list.
Click on the price list of your choice to open it.
Click on the Quick Add button and choose Product.
Look up the product you wish to add to the price list from the Search functionality. Once you find it, select and click to Insert to Selected and then click on Same pricing rule.
The system will prompt you to select the volume discount and pricing method. Click on the Volume Discount column and select the discount you want to apply from the drop down list.
Remember: you need to have created your volume discount first to be able to select it from the drop down list.
Click Save to save your changes.