What is tiered pricing in ERP software? How can I set up the volume discount per quantity? How to set up discounted prices for my customer groups?
Setting prices is a process with the ultimate goal of defining the strategy that will enable you to maximize your profit!
The downside is that defining a pricing strategy takes time – it’s not only about knowing the cost of your items, knowing their value and knowing your competition. You have to get to know your customers, their needs and their situation, because they will ultimately be the one deciding whether your pricing is fair, and if they decide it’s not – they won’t be buying.
So, to effectively price your product or service and increase sales, you should look towards the people who are going to make the purchase depending on that price – you should base your price on your customers.
Every customer is different and deserves a different approach, so companies must adjust their basic prices to account for that difference.
Let’s be clear, the price difference is not a new phenomenon. We encounter it on a regular bases and often profit from it: as frequent customers, we often get discounts as an award for our loyalty. And when we do, we surely don’t object to this kind of price difference.
In Erpag, to manage that, you have price tiers – the option that will enable you to set different prices for different customers, whether the reason is to reward their loyalty or it’s because they belong to different customer groups (such as distributors, retailers etc.).
While the price tiers will enable you to have a customer-based pricing and maintain your customers loyal, building long-lasting business relationships, there is one more pricing strategy that will motivate your customers to purchase more items at a time: volume discount! With this option, you can define different price ranges and set up different price per item for each one of those ranges.