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Pricing strategies

5 minutes

Kafinea allows you to set up four different pricing strategies according to your needs.
These pricing strategies can be set up per item in the pricing grids.

Declining rate per volume #.

This is the most commonly used pricing strategy.
Allows you to define a sliding scale price for orders of a certain volume.

Example #

Price list #

  • From 1 unit, unit price € 10
  • From 101 units, unit price €8
  • From 201 units, unit price €6

Total # calculation

  • For 15 units, the total price will be 15 × 10 = 150 €
  • For 150 units, the total price will be 150 × 8 = 1200 €

Decreasing rate by increments # # # # # # # # # # # # # # # # # # # # # # # # #

This pricing strategy is used in certain core businesses.
It allows you to define a sliding-scale price that applies to each volume bracket of the item ordered.

Note: If the "Group by" field is used, each range will be prorated according to the total number of products grouped.

Example #

Price list #

  • From 1 unit, unit price per slice € 10
  • From 101 units, unit price per slice €8
  • From 201 units, unit price per slice €6

Total # calculation

  • For 15 units, the total price will be 15 × 10 = 150 €
  • For 150 units, the total price will be 100 × 10 + 50 × 8 = 1400 €

Declining rate per volume based on group volume #.

This pricing strategy can be used for item consumption.
The total consumption of each item by the various subsidiaries and the parent company of a group is used to define the unit price.

Example #

The group comprises Subsidiary A and Subsidiary B.

Price list #

  • From 1 unit, unit price € 10
  • From 101 units, unit price €8
  • From 201 units, unit price €6

Total # calculation

  • Subsidiary A consumed 15 units.
    Subsidiary B consumed 10 units.
    The group's total consumption is 25 units.
    The total price for the group will be 25 × 10 = 250 €
    The total price for Subsidiary A will be 15 × 10 = 150 €
    The total price for Subsidiary B will be 10 × 10 = 100 €
  • Subsidiary A consumed 15 units.
    Subsidiary B consumed 135 units.
    The group's total consumption is 150 units.
    The total price for the group will be 150 × 8 = 1200 €
    The total price for Subsidiary A will be 15 × 8 = 120 €
    The total price for Subsidiary B will be 135 × 8 = 1080 €

Sliding scale rate based on group volume #.

This pricing strategy can be used for item consumption.
The total consumption of each item by the various subsidiaries and the parent company of a group is used to define the unit price.

Note: If the "Group by" field is used, each range will be prorated according to the total number of products grouped.

Example #

The group comprises Subsidiary A and Subsidiary B.

Price list #

  • From 1 unit, unit price € 10
  • From 101 units, unit price €8
  • From 201 units, unit price €6

Total # calculation

  • Subsidiary A consumed 15 units.
    Subsidiary B consumed 10 units.
    The group's total consumption is 25 units.
    Subsidiary A represents 60 % consumption.
    Subsidiary B represents 40 % consumption.
    The total price for the group will be 25 × 10 = 250 €
    The total price for Subsidiary A will be 60 % × (25 × 10) = 150 €.
    The total price for Subsidiary B will be 40 % × (25 × 10) = 100 €.
  • Subsidiary A consumed 15 units.
    Subsidiary B consumed 135 units.
    The group's total consumption is 150 units.
    Subsidiary A represents 10 % consumption.
    Subsidiary B represents 90 % consumption.
    The total price for the group will be 100 × 10 + 50 × 8 = 1400 €
    The total price for Subsidiary A will be 10 % × (100 × 10 + 50 × 8) = 140 €
    The total price for Subsidiary B will be 90 % × (100 × 10 + 50 × 8) = 1260 €

Using the "Group by" # option

For each of the above-mentioned pricing strategies, the "Group by" and "Group by value" options
allow you to specify a field and a value which will be used to calculate the total quantities consumed
and select the right tariff.

Example 1 #

  • The pricing strategy for item A is configured as follows:
  • Declining rate per volume
    • From 1 unit, unit price € 10
    • From 101 units, unit price €8
    • From 201 units, unit price €6
  • "Group by" = groupingfield
  • "Group by value" = groupe 1
  • The value of groupingfield for item A is groupe 1
  • The value of groupingfield for item B is groupe 1
  • Consumption of item A is 80 units
  • Consumption of item B is 30 units
  • The unit price for 110 units is €8.

The total price for item A will be 80 × 8 = 640 €

Example 2 #

By selecting a "Group by value" value other than that of the item, you can obtain a price list
which will be calculated on the consumption quantities of other items.

  • The pricing strategy for item A is configured as follows:
  • Declining rate per volume
    • From 1 unit, unit price € 10
    • From 101 units, unit price €8
    • From 201 units, unit price €6
  • "Group by" = groupingfield
  • "Group by value" = groupe 1
  • The value of groupingfield for item A is groupe 0
  • The value of groupingfield for item B is groupe 1
  • The value of groupingfield for item C is groupe 1
  • Consumption of item A is 80 units
  • Consumption of item B is 100 units
  • Consumption of item B is 110 units
  • The unit price for 210 units is €6.

The total price for item A will be 80 × 6 = 1260 €

Index
  • Declining rate per volume
    • Example
      • Price list
      • Total calculation
  • Sliding scale
    • Example
      • Price list
      • Total calculation
  • Declining rate per volume based on group volume
    • Example
      • Price list
      • Total calculation
  • Sliding scale based on group volume
    • Example
      • Price list
      • Total calculation
  • Using the "Group by" option
    • Example 1
    • Example 2

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