Price Lists and Price Terms
When creating most products, a price needs to be set. As such, the hierarchy of the price is as follows: The Base Price is the starting price that most products must have. The Price List (without the Price Term) is a type of discount that sellers offer for their products, and it overrides the base price, while Price Term is used for intervals, overriding the Price List. The last one is a combination of both, Price List with Price Term, a setting which overrides all other prices.
In order for the Price List to be taken into consideration, the following checks need to be performed:
- The Price List is active
- The Price List is not deleted
- The quantity of the product is greater or equal to the quantity on the Price List
- The end date is a greater number than today’s date
T o assign Price Lists, click Products on the application navigation which will automatically take you to the Product List page as you can see on the left navigation.
The next step is the same for both cases, when the product is already created and when it needs to be created. On the product view page, after you have entered the main information, scroll down to Product Details. Where Price* is shown, click on the three dots.
This takes you to the view where you can assign and edit Price Lists for that specific product. Click the Create button on the top right corner of the screen.
This will open a pop-up window where you need to enter information such as:
1. Minimum quantity
3 . Price Type (Fixed or Percentage)
You also have the optional settings of adding the Term, the Start Date, and the End Date.
To have a better understanding, refer to the Price List example.
1. The base price for the product is $20
2. The minimum quantity is 5
3. The price on the price list is $10 and is Fixed
This now means that if a customer buys a minimum of 5 units of this particular product, they will pay $10 per unit instead of a $20 per unit as regular base price assigned. Note that the same action can be performed with the only difference being that the Price Type can be a Percentage instead of a Fixed number.
To add Price Terms, checks need to be performed same as above, to see if:
- The Price Term is active
- The Price Term is not deleted
The Price Term is a sort of agreement in which the buyer agrees to buy the product in an interval of payments as a kind of contract that will be processed afterwards. It can also be both a percentage rate or a fixed number. O n the product view page, after you have entered the main information, scroll down to Product Details and click Terms.
This action takes you to the page where you can see the existing Price Terms and create new ones as well. Clicking on Create opens a pop-up window where in order to add a Price Term you need to provide information such as the Term, Interval, Unit, Price, and Price Type. To have a better understanding, refer to the Price Term example below:
1. The base price is $30
2. The Term is Year
3. The Interval is 12
4. The unit is Month
5. The price is $15
6. The Price Type is Fixed
This means that for a product which has a base price of $30, if a certain buyer purchases a service for 12 months on a yearly term, they will pay $15 on a monthly basis. Note that the same steps can be taken with the only difference being that the Price Type is a Percentage.
Price List with Price Term
This option includes having both the Price List and the Price Term active, meaning that there is a sort of discount for a certain amount of time. This price setting has the highest priority and overrides all other prices for that product.
It is important to note that you also have the option to include Price Lists and Price Terms when you establish Price Books for Distributors and Resellers and assign commissions to them.