Tiered pricing
With DYCE Feature Suite for Subscription Billing two types of tiered pricing are supported: flat and true tiered pricing. Both are maintained via sales price lists. Therefore, New sales pricing experience must be activated in Feature Management. The actual definition is made via two additional options in the Defined field. If one of the options is selected, the Amount for Price Tier can be defined for the tier.
If Flat-Tier pricing is selected, the quantity scales are created based on the minimum quantities with a total price for the tier. For True-Tier pricing, each tier has its own price. All relevant price scales are taken into account for the price determination and the sum of the tier amounts then results in the tier price.
In both cases, the calculated tier price always applies to all quantities within a price tier. As the total price remains the same for different quantities within a price tier, the unit price is calculated in each case and decreases with increasing quantities within a tier.
Create and maintain tiered pricing
To set up tiered pricing for an item, you must use the Sales Prices action from the Item card (or list). The action is located in the menu group Prices and Discounts. A price tier is defined using the Minimum Quantity. In contrast to the Business Central standard, tiered prices do not define the unit price (in combination with a minimum quantity), but the total amount for the price tier. Therefore, when selecting one of the tier price options, the Purchase price field is not editable but the new Amount for price tier field is.
Item Prices can be defined for different scopes (entities). In the context of price lists, this is done via the Assign to type field. It specifies the type of entity for which the price list/line is valid. For example, prices can be defined for All Customers, Customer Price Groups or for a specific Customer. However, it is not possible to mix scaled prices and non-scaled prices within one area of validity.
Example: Flat-Tier pricing
Excelsis Software Solutions is planning to introduce package prices for different user levels for its software product. A package for up to 20 users costs 159 EUR per month. The next tier is the package for up to 30 users for EUR 229. This means that a customer with 21 users makes a one-time jump from 159 EUR to 229 EUR. All units are charged at the price of the applicable price tier.
The following lines are configured for an item in the price list:
- Line 1: Minimum quantity = 0, amount = 159
- Line 2: Minimum quantity = 21, amount = 229
- Line 3: Minimum quantity = 51, amount = 399
Line 2 is relevant for a quantity of 25, so this amount (229 EUR) is taken as the total price.
Example: True-Tier pricing
Quantum Software plans to introduce package pricing for different user tiers, but with a more detailed approach, i.e. each tier has a specific price that adds up. One tier for up to 10 users costs 99 EUR per month, the next tier for up to 20 users costs 69 EUR and the next tier for up to 30 users costs 49 EUR. This means that a customer with 25 users pays a total price of EUR 217. Each price tier is calculated separately and added together.
The following lines are configured for an item in the price list:
- Line 1: Minimum quantity = 0, amount = 99
- Line 2: Minimum quantity = 11, amount = 69
- Line 3: Minimum quantity = 21, amount = 49
- Line 4: Minimum quantity = 51, amount = 39
Lines 1-3 are relevant for a quantity of 25. The sum of the amounts of all lines is 217 EUR. This amount is taken as the total price.
Use of tiered pricing
As part of pricing, tier prices are used in the sales line - both for subscription items and for items without a subscription option, in customer subscription contracts and when processing usage data.