Tiered Prices

Tiered pricing is a strategy in which the purchase price per unit (e.g. piece) decreases as the number of items purchased increases. The more that is purchased, the less is paid. This approach is often used to encourage bulk purchases and increase sales volume.

Advantages of using tiered prices:

• Provide more flexible pricing options
• Manage costs better based on order volumes and agreements with suppliers
• Estimate prices with foresight, taking into account different annual intervals (validity periods)

Sequence

The required steps in order to use tiered prices in FACTON will be shown in the following chapters:

Step 1: Activate Tiered Prices

Step 2: Administer Tiered Prices

Step 3: Use Tiered Prices in the Project