What is Volume Pricing & Discounts for Salesforce Products and Why is it Useful
Volume Pricing allows you to automatically apply discounts to customers based on the amount of product they are buying. You can set either specific prices based on quantity, or a percentage discount.
Volume Pricing has two ‘sub-options’ – Volume Pricing and Quantity Price Breaks (Tiered Discounts).
On a product record in Salesforce, if you select Volume in the Volume Price Option picklist, then calculations will be performed based on the Volume Pricing Model. If you select Tiered in the Volume Price Option picklist, then calculations will be performed on the Quantity Price Breaks (Tiered) Pricing Model. See below for details of each model.
Discounts and revised prices are automatically set, so that your sales team don’t need to worry about making sure that the right price is applied.
Use Volume Pricing when you want to incentivise the sale of higher quantities of individual products and make sure your sales team get the right price based on quantity entered.
Volume Pricing Model Example 1
A product has two Volume Pricing records
- Pricebook Price: $10
- Minimum Quantity: 100 Fixed Volume Rate: $9
- Minimum Quantity: 1000 Fixed Volume Rate: $8
The product has the Volume Price Option picklist value set to Volume.
When adding this product to an opportunity/quote, the following prices will be calculated
- Quantity 10 gives a total line item price of $100 as this is under the minimum quantity of 100
- Quantity 200 gives a total line item price of $1800 as this is above the minimum quantity of 100 but below the minimum quantity of 1000. The price is adjusted to match the fixed volume rate of the volume pricing record entry. This represents a 10% discount.
- Quantity 2000 gives a total line item price of $16000 as this is above the minimum quantity to achieve the rate of $8 per unit. This represents a 20% discount.
Volume Pricing Model Example 2
A product has two Volume Pricing records
- Pricebook Price: $10
- Minimum Quantity: 100 Discount Percentage: 5%
- Minimum Quantity: 1000 Discount Percentage: 15%
The product has the Volume Price Option picklist value set to Volume.
When adding this product to an opportunity/quote, the following prices will be calculated
- Quantity 10 gives a total line item price of $100 as this is under the minimum quantity of 100
- Quantity 200 gives a total line item price of $1900 as this is above the minimum quantity of 100 but below the minimum quantity of 1000. The price is adjusted to match the discount percentage of the volume pricing record entry which is a 5% discount.
- Quantity 2000 gives a total line item price of $17000 as this is above the minimum quantity to achieve the discount of 15% per unit.
Quantity Price Breaks (Tiered) Pricing Model Example
A product has two Volume Pricing records
- Pricebook Price: $10
- Minimum Quantity: 100 Fixed Volume Rate: $9
- Minimum Quantity: 1000 Fixed Volume Rate: $8
The product has the Volume Price Option picklist value set to Tiered.
When adding this product to an opportunity/quote, the following prices will be calculated
- Quantity 10 gives a total line item price of $100 as this is under the minimum quantity of 100
- Quantity 200 gives a total line item price of $1900 as the first 100 units are sold at the pricebook price and then next 100 are at the $9 rate. This represents a 5% discount.
- Quantity 2000 gives a total line item price of $17,100 as the first 100 unitsare sold at the pricebook price (100 x $10), the next 900 are sold at the $9 rate (900 x $9) and the next 1000 are sold at the $8 rate (1000 x $8). This represents a 14.5% discount.
The Volume Pricing Model offers more aggressive discounting than Quantity Price Breaks (Tiered) Pricing Model
Setup Volume Pricing & Discounts
- Go to the FlexPricer Setting page
- Under ‘Price Controls’ check the box to Enable Volume Pricing > Save
- Go to Setup > Search (type Products) > Product > Page Layouts > Edit
- Under the Product Page Layout add the ‘Volume Prices‘ related list
- Next to the Volume Prices related list, click the spanner and select ‘Discount Percentage‘ and ‘Minimum Quantity‘ fields
- Click Save and Yes to override users’ customisations.
Note that there are 2 sub-features of Volume Pricing:
- Allow Volume Prices on Products to be applied to Bespoke Account Prices (Client Prices) that do not have Bespoke Account Volume Prices (Client Volume Prices)
- Allow Volume Prices to be applied to Bundle Prices
These additional features enable you to discount Client and Bundle prices by a Volume discount.
Configure Volume Pricing Records
- Go to Product tab, select a product to add a volume price to
- Click New Volume Price
- Set the Minimum Quantity and Discount Percentage (for example, you can set a minimum quantity of 5 in order to receive a 10% discount)
- The Product record now shows the Discount Percentage based on the Minimum Quantity.
- Go to an Opportunity, click Add Product, and add the product for which you just created the new volume price
- Now for example, if you add a Quantity of 5 or more then the 10% discount will be applied.
Using Volume Pricing
- When a sales users adds a product to an opportunity/quote and that product has volume price records, the volume prices are display on a hover on the line item Quantity.
- The Volume Price hover is also available on Product Card search results.
- When the quantity of a line item is changed to above/below a volume price or price break quantity, the revised price (or discount) is automatically applied.
The following video also demonstrates how to setup and use Volume Pricing.
Additional Information about Volume Pricing
- When a Volume Price is applied to a line item, the Sales Price of that line item can adjusted in the FlexPricer interface, however any changes to the Quantity of the line item will re-apply the Volume Price. Any discounts to the Volume Price must be made by applying a percentage discount.
- When using Dimensional Product Quantities, it is possible to apply a Volume Discount based on an individual dimension by selecting a dimension in the Quantity Dimension picklist.
For example if you use the Quantity X dimension for ‘Users’ and Quantity Y dimension for ‘Months’, and wish to offer a 5% discount on 12 months or more, create a Volume Price record with the discount percentage as 5%, a quantity of 12 and with the Quantity Dimension picklist set to Quantity Y.