Volume Pricing

← Price Models

With volume pricing, the per-unit price depends on the quantity (or "purchased volume").

To support this scenario, you create price tiers for an item. That is, you define quantity ranges and a price for each. Like this:

Tier	Quantity	Price	Price Type
A	10	2,50	Default
B	20	2,40	Default
C	30	2,30	Default
D		2,20	Default

Now assume a customer purchases 25 units of this item: The item would be invoiced with 2,30 per unit (according to the tier C with the quantity range 21-30), with a subtotal of

25 * 2,30 = 57,50

Volume pricing can be used with one-time, recurring or transactional (usage-based) items (see Billing Types).

With usage-based items, you can even add another quantity layer to your volume-based billing scenario. In addition to the standard quantity, usage-based items can hold a price tier quantity, which determines the price tier allocation but is not used to calculate an item's subtotal. When setting up usage data billing, you can configure the usage data source object to determine the price tier quantity – for example, multiplying the standard quantity with a specific factor or accumulating additional consumptions. This would allow to have group orderers or some privileged customers benefit from lower prices.

Let us extend the example above: There is a group orderer who purchases 25 units of the item. This would allocate tier C with 2,30 per unit. The price tier quantity, however, is set up to accumulate the purchases of other group members, and now yields 45. That is, tier D applies, and the item is billed with 2,20 instead of 2,30 per unit:

25 * 2,20 = 55