Applying volume discounts
Volume discounts allow you to reduce the unit price of an item based on the quantity that is being purchased. In other words, the more a customer buys of an item, the less the per item price is. Volume discounts are managed in an inventory item's profile. Each discount tier is based on the maximum number of items in that tier, except for the final tier, which will apply for all items purchased after that tier is reached. The price for the entire purchase of the item will automatically reflect the applicable discount tier based on the quantity being purchased.
To apply a price tier to an inventory item:
- Click on "Inventory"
- Search for the applicable inventory item
- Click on "price tiers" and select "new tier"
- Complete the form that appears, and click "save + done" to save the current tier and close the form, or "save + add new" to save the current tier and add another tier
The price tier is based on the maximum number of items in that tier.
Only one tier is permitted for a given discount.
Let's work through an example to see how this works. Assume you want to offer a discount of 10% if a client buys more than 10 of a certain item. To achieve this, you would create the following tiers:
- Maximum quantity of 10 with a 0% discount (this ensures that no discount applies when 10 or less are purchased)
- Maximum quantity of 11 with a 10% discount (this ensures a 10% discount applies to quantities of 11 or more)
Related Articles
Managing Discounts
Managing Discounts Discounts are managed under the “configuration” tab in Settings. To add a discount: Click on Settings Click on “Configuration” and select “New Discount” In the form that appears, select whether the discount should apply to all ...
Merging inventory items
To merge one inventory item into another: Navigate to the profile of the item that is to be merged Click on "merge item" Select the inventory item into whose profile the current inventory item should be merged Click "merge" Once merged, the merged ...
Adjusting inventory balances
If the balance of an inventory item is different from the actual balance on hand, an adjustment needs to be recorded to correct the difference and document the change. Adjustments can be recorded on the inventory item's overall balance, or against a ...
Receiving an order into inventory
Receiving an order into inventory will automatically update all of the inventory items that are being received, including creating purchase records for those items. It's an easy way to update inventory, especially if you are using one of the ...
Managing inventory subcategories
Organizing your inventory items by category is one of the most important things you can do in order to track stock effectively, apply taxes accurately, and report the use of inventory items. We use the AAHA Chart of Accounts as a starting point, but ...