Solving Pricing Management Problems: Price Breaks on Quantity

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Rockton Pricing Management was built to address the numerous challenges businesses have with managing various pricing scenarios. We explain how Rockton Pricing Management handles price breaks on quantity.

Businesses often entice customers to buy more from by giving them price breaks based on volume of items purchased. Typically, the more they buy, the more they save.

For instance, you might want to sell a given item for $10 each, then reduce the price to $9 each if they buy a quantity of 10 or more, then $8 each for quantities over 20.

quantity break

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With these stepped Quantity Breaks, there are two types of calculations possible: Volume Pricing and Tiered Pricing.

With Volume Pricing, we look at the applicable Quantity Break for the quantity of a given scenario. Every item is then priced at the price for that Break. So, if you purchased 25 items, each item would be $8 each. The Unit Price would then be $8.00 for this scenario.

With Tiered Pricing, each Quantity Break is calculated on its own. So, the first 9 items (1-9) would be $10 each, the next 10 items (10-19) would be $9 each, and the final 6 items (20-25) would be $8 each. Because Rockton Pricing Management calculates the Unit Price, the Unit Price for 25 items would be $9.20 (complex math omitted.)

Rockton Pricing Management can handle Volume or Tiered pricing, it’s just a selection in the Quantity Breaks entry window. Rockton Pricing Management will then calculate your correct prices, accordingly, automating the process for you and improving profits.

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