Tiered pricing

Tiers and tier qualifiers are the main components used to create tiered pricing on a manufacturer contract. You can use tier and tier qualifiers to perform these actions:

Calculate the discounts or markups on prices and freight
Help determine which participants receive a markup or discount based on the dollar amount of purchased goods

In Contract Management, the manufacturer's net cost for an item can be used to negotiate prices. Prices are negotiated through an independent relationship where goods are purchased directly from the manufacturer. Prices can also be negotiated through a dependent relationship where goods are purchased from a distributor.

Tiers

Tiers are used to calculate the discount or markup on a price or freight cost. When creating a tier, you can define these tier properties: price type, price cost, freight type, and freight cost.

Before you create and assign a tier, you must identify the participants to assign as tier members on the contract. After you identify the participants, the tiers are used to determine which participants occupy a tier based on the dollar amount of purchased goods.

Tier Qualifiers

Tier qualifiers represent the requirements that must be met for a participant to qualify for a specific tier.