Pricing Strategies - Revision history

Luke at 14:20, 3 August 2022

2022-08-03T14:20:28Z

← Older revision		Revision as of 14:20, 3 August 2022
Line 1:		Line 1:
	This article is part of a series on the payments module. Sometimes you may want to have products with bulk discounts - those products are defined by adding additional products as "tiers" to a main product which is called the "base price".		This article is part of a series on the [[Payments\|payments module]]. Sometimes you may want to have products with bulk discounts - those products are defined by adding additional products as "tiers" to a main product which is called the "base price".

	[[File:Price_tiers.png]]		[[File:Price_tiers.png]]

Luke: /* Step Always */

2022-08-03T13:43:30Z

Step Always

← Older revision		Revision as of 13:43, 3 August 2022
Line 148:		Line 148:
	\| 2000 \|\| 10% overage discount (excess 1) \|\| £109.99		\| 2000 \|\| 10% overage discount (excess 1) \|\| £109.99
	\|-		\|-
	\| 2500 \|\| 10% overage discount (excess ~~500~~) \|\| £154.90		\| 2500 \|\| 10% overage discount (excess 501) \|\| £154.99
	\|}		\|}

Luke at 23:13, 2 August 2022

2022-08-02T23:13:57Z

← Older revision		Revision as of 23:13, 2 August 2022
Line 3:		Line 3:
	[[File:Price_tiers.png]]		[[File:Price_tiers.png]]

	When you do this though, there are multiple ways that the actual price someone pays can be calculated, and we call these options '''pricing strategies'''.		When you do this though, there are multiple ways that the actual price someone pays can be calculated, and we call these options '''pricing strategies'''. Note that the pricing strategy on the parent base item is the only one that is applied.

	= Standard Tiers =		= Standard Tiers =

Luke at 23:12, 2 August 2022

2022-08-02T23:12:23Z

← Older revision		Revision as of 23:12, 2 August 2022
Line 1:		Line 1:
	This article is part of a series on the payments module. Sometimes you may want to have products with bulk discounts - those products are defined by adding additional products as "tiers" to a main product which is called the "base price". When you do this though, there are multiple ways that the actual price someone pays can be calculated, and we call these options pricing strategies.		This article is part of a series on the payments module. Sometimes you may want to have products with bulk discounts - those products are defined by adding additional products as "tiers" to a main product which is called the "base price".

			[[File:Price_tiers.png]]

			When you do this though, there are multiple ways that the actual price someone pays can be calculated, and we call these options '''pricing strategies'''.

	= Standard Tiers =		= Standard Tiers =

Luke: /* Standard Tiers */

2022-08-02T23:10:08Z

Standard Tiers

← Older revision		Revision as of 23:10, 2 August 2022
Line 7:		Line 7:
	[[File:standard.png]]		[[File:standard.png]]

	The tiers are completely independent. You could have tier 1 start ~~substantially~~ cheaper than where the base price ends for example.		The tiers are completely independent. You could have tier 1 start cheaper than where the base price ends for example - this is a common technique in marketing to create little incentive pits for people to buy a few more if they're near a price boundary.

	Here's a sample product:		Here's a sample product:

Luke: /* Standard Tiers */

2022-08-02T23:08:53Z

Standard Tiers

← Older revision		Revision as of 23:08, 2 August 2022
Line 3:		Line 3:
	= Standard Tiers =		= Standard Tiers =

	The standard tiers pricing strategy is the simplest strategy and also the default. If you're not sure, just stick with this one. Using the MinQuantity, it will select the tier that the purchase quantity fits in to. Then it will multiply that tier price by the purchase quantity.		The standard tiers pricing strategy is the simplest strategy and also the default. If you're not sure, just stick with this one. Using the MinQuantity, it will select the tier that the purchase quantity fits in to. Then it will multiply that tier price by the whole purchase quantity.

	[[File:standard.png]]		[[File:standard.png]]

Luke: /* Standard Tiers */

2022-08-02T23:05:34Z

Standard Tiers

← Older revision		Revision as of 23:05, 2 August 2022
Line 7:		Line 7:
	[[File:standard.png]]		[[File:standard.png]]

	The tiers are completely independent. You could have tier 2 start substantially cheaper than where the base price ends for example.		The tiers are completely independent. You could have tier 1 start substantially cheaper than where the base price ends for example.

	Here's a sample product:		Here's a sample product:

Luke: /* Standard Tiers */

2022-08-02T23:05:19Z

Standard Tiers

← Older revision		Revision as of 23:05, 2 August 2022
Line 6:		Line 6:

	[[File:standard.png]]		[[File:standard.png]]

			The tiers are completely independent. You could have tier 2 start substantially cheaper than where the base price ends for example.

	Here's a sample product:		Here's a sample product:

Luke: /* Step Always */

2022-08-02T23:01:18Z

Step Always

← Older revision		Revision as of 23:01, 2 August 2022
Line 102:		Line 102:

	= Step Always =		= Step Always =

			Step Always exclusively uses stepping. The price is the sum of the maximum number of products from each tier passed, plus the excess quantity of the tier the purchase quantity falls in multiplied by the price from that tier.

			[[File:step_always.png]]

			Here's a sample product:

			{\| class="wikitable"
			\|+ Mobile data
			\|-
			! Tier !! Price !! MinQuantity
			\|-
			\| £10 for 1000GB \|\| £0.01 \|\| 1000
			\|-
			\| 10p per GB overage \|\| £0.10 \|\| 1001
			\|-
			\| 10% overage discount \|\| £0.09 \|\| 2000
			\|}

			Here's how the prices are computed:

			{\| class="wikitable"
			\|+ Quantities bought
			\|-
			! Quantity !! Established tier !! Total Price
			\|-
			\| 100 \|\| Base Price (site rounded) \|\| £10.00
			\|-
			\| 500 \|\| Base Price (site rounded) \|\| £10.00
			\|-
			\| 1000 \|\| Base Price (site rounded) \|\| £10.00
			\|-
			\| 1001 \|\| 10p per GB overage (excess 1) \|\| £10.10
			\|-
			\| 1500 \|\| 10p per GB overage (excess 500) \|\| £60.00
			\|-
			\| 1999 \|\| 10p per GB overage (excess 999) \|\| £109.90
			\|-
			\| 2000 \|\| 10% overage discount (excess 1) \|\| £109.99
			\|-
			\| 2500 \|\| 10% overage discount (excess 500) \|\| £154.90
			\|}

			Unlike either step once or standard, this never produces a situation where buying more is cheaper. The price curve is essentially continuous, because all "passed" tiers are factored in to the final price. If the quantity is less than the base price minimum, it will check with your site wide ProductService settings if it should be rounded to the minimum, or error.

			[[File:step_always_min.png]]

Luke: /* Step Once */

2022-08-02T22:54:38Z

Step Once

← Older revision		Revision as of 22:54, 2 August 2022
Line 55:		Line 55:
	= Step Once =		= Step Once =

	Step once uses the standard tier pricing strategy except for on the base price. If the purchase quantity is in any of the tiers, the price will be based on the tier price and the '''excess quantity''', plus the maximum number of items at the base price. The excess quantity is the purchase quantity minus the maximum number of items at the base price. ~~If the quantity is less than the base price minimum, it will check with your site wide ProductService settings if it should be rounded to the minimum, or error~~. Here's a sample product:		Step once uses the standard tier pricing strategy except for on the base price. If the purchase quantity is in any of the tiers, the price will be based on the tier price and the '''excess quantity''', plus the maximum number of items at the base price. The excess quantity is the purchase quantity minus the maximum number of items at the base price.

			[[File:step_once.png]]

			Here's a sample product:

	{\| class="wikitable"		{\| class="wikitable"
Line 93:		Line 97:
	\|}		\|}

	As it is using the standard tiers strategy for tiers 2 onwards, note that just like standard tiers this can also produce situations where it is cheaper to buy more which may be intentional.		As it is using the standard tiers strategy for tiers 2 onwards, note that just like standard tiers this can also produce situations where it is cheaper to buy more which may be intentional. If the quantity is less than the base price minimum, it will check with your site wide ProductService settings if it should be rounded to the minimum, or error.

			[[File:step_once_min.png]]

	= Step Always =		= Step Always =