Promotional and Discount Pricing

This document discusses different factors that affect promotional pricing. We will explain the importance of understanding pricing hierarchy, the different types of discounts that can be applied to your inventory and the way pricing and discounts are displayed through the web store.

To optimize the ability to apply different discount types, you first need to set up pricing for all the items in your inventory. To get started on item pricing, read our documentation: Set Up Prices.

Other important documentation that you can read about pricing schemes in Connected Business are:

Set Up Inventory and Pricing Discount Schemes
Manage Item Pricing
Set Up Promotional Pricing Feature

 

Promotional Pricing Hierarchy

Connected Business has various pricing options which you can set up to implement a pricing scheme that meets your business needs.

In defining the options for your pricing scheme, you must be familiar with how pricing is implemented in Connected Business.

Given that the product pricing in Connected Business is flexible, a pricing hierarchy is implemented to determine the product price during order entry. This allows you to determine and set up the correct pricing options for your business. The following shows and explains the order of pricing options in the hierarchy.

    1. Customer Special Pricing and Promotional Pricing - In this option, the system checks if the product has a special pricing set up for the customer and/or effective promotional pricing. If both are set up, the system will use the pricing option with the lower price. If only one is set up, the system will use the pricing option that is currently defined.  If neither option is set up, the system will check the next level in the hierarchy which is the Customer Pricing Method.

    2. Customer Pricing Method – In this option, the system checks the assigned method for the customer.

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      From the dropdown field labeled Pricing Method, you can choose any of the following values:

      • Price List – the system will use the price of the product as defined in the specified price list (if there is any), otherwise, the system will check the next level in the hierarchy which is the Customer Default Pricing.

      • Markup on Last Cost – the system will mark up the last cost of the product.

      • Last Price Paid – the system will use the price of the product used on the latest invoice of the customer. If none, the system will use the default price as the initial price.

      • None – the system will use the Customer Default Price.

    3. Customer Default Price – the system will check the default price and uses it as the product price. It can be any of the following values:

      • Wholesale – if set, the system will get the product’s wholesale price.

      • Retail – if set, the system will get the product’s retail price.

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Set Up Part Codes

In the Customer Part Codes tab, you can set up the item code and description for the item based on the preference of the customer. You can access this feature by going to a Customer Detail Form and clicking on the Pricing tab.

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To set up customer part codes,

  1. Select an inventory item in the Item Name column. The default description will display in the Inventory Description column.

  2. Modify the values in the Customer Item Code and Customer Description columns as needed.



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Set Up Special Pricing

In the Special Pricing tab, you can set up special pricing for the customer when buying specific items.

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To set up special pricing,

  1. Select the items to be included in the special pricing by clicking the dropdown arrow in the Item Name column.

  2. Click the node button right beside the item name to create a quantity price break for the item. The Item Unit Measure Code form will be displayed.

  3. Click the node button right beside the unit measure code to view the Quantity Price Break form.

  4. In the Quantity Price Break form, indicate the maximum quantity and discount to be given for each price break level as well as the unit selling price. The unit selling price will be based on the selling price set for the item’s default unit measure.

  5. Indicate the special pricing period in the Date From and Date To fields respectively.

  6. Click Save and Close to apply the changes.

A message prompt will be displayed in the sales order once the special pricing period has expired. You can remove the special pricing for the item by deleting the item from the list of items included in the special pricing.



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Customer Discounts

Customer discounts are prices that can only be applied to customers who have been entered into the customer list. To set up this function, go to the Customer module, click Customer > Find Customer and find the customer from the item list.

On the Customer Detail Form, find the Pricing Tab and assign the pricing scheme for the specific customer.

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The following describes the discount types you can apply:

  • Band - If selected, a discount will be applied if the customer orders an item included in the discount category band. Upon selecting this type, the Discount Band field will be displayed where you can select the discount band. To apply discount bands to your inventory follow the steps laid out on our documentation for Discount Schemes.

  • Overall - If selected, a discount will be applied to order of any item in the inventory. Upon selecting this type, the Discount field will be displayed where you can enter the percentage of discount to be applied.

  • None - No discount will be applied to the customer’s orders.



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Apply Price List to Customer Form

You can also apply a pre-created price list to the orders of a customer. To set up the price lists beforehand, consult our documentation on how to Setup Price List / Multi-Level Pricing.

To use price lists for a specific customer:

  1. Find the field labeled Pricing Method and on the pricing tab and choose Price List.

  2. A new field will be enabled labeled Pricing Level. Choose the relevant price list for your transaction.

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  3. Click Save and Close.



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Apply Quantity Pricing to Customer Forms

Quantity Pricing rewards customers who shop in greater volume. To set up quantity pricing for your inventory, consult our documentation on how to Set Up Prices.

To apply quantity pricing for specific customers:

  1. Go to the Pricing tab of the Customer form. In the Special Pricing tab, add all the relevant items.

  2. Expand the details of every line item by clicking on the + button. The last level of the item list is labeled Quantity Price Break.

  3. Fill in the price breaks according to your desired pricing scheme.

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  4. Click Save and Close.



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Display Promotional Pricing on the Web Store

The price displayed on the product page depends on the type of discount schemes you are applying. Promotional discount hierarchy has been discussed on the first part of this document, but it's possible to apply and display more than one discount scheme on your web store.

The image below shows an example of a product page where the pricing assigned to the product is the Retail price.

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Specialized customer pricing will only be available if the customer's account has been signed into the web store. If the shopper is not registered in the web store, the standard wholesale or retail price will be displayed, depending on your assigned pricing more.

OVERALL OR BAND DISCOUNT

This product page displays the price where an overall discount price scheme (15%) is applied to the retail price.

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QUANTITY DISCOUNT PRICING

When the quantity pricing scheme is enabled, price breaks are listed on the product page as a dialog box. To view the dialog box find the hyperlink after the message: "This product qualifies quantity discount pricing."

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COMBINED DISCOUNTS

It is possible to combine quantity discounts with additional band, overall, promotional or special customer discounts.

The following image illustrates the reduced Unit Selling Price with an applied 15% overall discount and additional quantity discount for ordering 21 pieces of the item.

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  • Thursday, 23 April 2015