Use the Pricing Tiers screens to set up customer price tiers (e.g., National Accounts, Major Chains, Wholesalers, Retailers). Each customer can be assigned to a pricing tier. The pricing tier determines how certain pricing methods apply to a customer assigned to that pricing tier. Specifically, the pricing tier controls the interaction between discounts by price list, discounts by warehouse, and discounts by quantity break schedule.
Pricing Tiers
- Pricing tiers represent groupings of Customers that qualify for the same type of pricing methods
- Each pricing tier must be set up in the value list for pricing tiers
- Each pricing tier can include different markup percentages, discounts from list price, etc.
- This discount by pricing tier is sometimes referred to by others as “Matrix Pricing” or “Columnar Pricing”; in Accolent ERP it is referred to as “Discounts by Pricing Tier”
- The discounts by pricing tier, discounts by warehouse, and the discounts by quantity break schedule interact with numerous pricing strategies to determine a product’s price for each customer
- Go to Settings > Value Lists > Value Lists (M-Z) > Pricing Tiers, to see a list of price tiers, edit a price tier, or create a new price tier:
Pricing Tier Fields
| Field | Description |
| Active check box | To view an inactive account, see Active and Inactive Records. |
| Pricing Tier | Pricing tier code. The Pricing Tier determines which pricing methods will be applied to a customer. When creating a new pricing tier, the next available code number is assigned in numerical order and cannot be changed. |
| Description | Description of the pricing tier |
| Price Tier Method | One of four pricing methods in effect for this price tier |
| Web Discount (%) | Additional discount percentage to apply to purchases made through eCommerce online ordering modules. |
Pricing Tier Methods
Method 1
- Quantity Breaks + add % by Pricing Tier
- Discount by quantity break is applied to the product’s list price, then discounts by warehouse and customer price list table are combined and applied. In other words, all possible discounts are applied when method #1 is used.
- Example of method 1: Discounts by pricing tier and discounts by warehouse location add to the quantity break discount earned. For a product with list price of $100, the quantity break discount of 10% is applied first for a working price of $90. Then the discount by pricing tier of 10% and the discount by warehouse of 5% are combined for a 15% discount so the calculation is 90.00 times .85 or $76.50. It is important to note that the discounts by pricing tier and warehouse location are added together and then are taken on top of the quantity break discounts. If the discounts were simply added together (which they are not in Accolent ERP), the overall discount would be 25% and the final price would be $75
Method 2
- No quantity breaks. No quantity break discounts are given
- These customers will get the discount % (or markup %) by pricing tier and that applies to their price list and the appropriate warehouse discount
Method 3
- Quantity Breaks with min % by pricing tier
- The customer’s price will be the greater of the discount by quantity break or the discount by pricing tier and warehouse discount
- This insures that your customers get a minimum discount level
- This method ensures that a specific class of trade will always be discounted at a specific level regardless of the quantity purchased
- Method 3 applies to pricing by discount percentage from list; it does not apply to prices derived from markup percentage from list
Method 4
- Quantity Breaks with min % by pricing tier
- The quantity break discount earned at order entry will be applied to the customer’s price up to the maximum discount percent entered for pricing tier
- Like method 3, this method applies to pricing by discount percentage from list. It does not apply to prices derived from markup percentage from list