What is the real world use of price Break?
Give me a real world example .
What is the real world use of price Break?
Give me a real world example .
Best answer by Nikila Dis
Hi
Price break templates are used to group parts with the same characteristics regarding price depending on the ordered quantity. In the price break template, you define quantities with a percentage offset from the base price of the sales part. If the use of price break templates is enabled on sales price lists and customer agreements, quantities and base prices are applied according to the price break template.
For an real world scenario let’s take a manufacturing company, XYZ Industries, sells an industrial pump with a base price of $1,200 per unit. To encourage bulk purchasing, they apply an IFS Price Break Template to their sales price list. According to the template, orders between 1–9 units receive no discount, orders between 10–24 units receive a 4% discount, orders between 25–49 units receive an 8% discount, and orders above 50 units receive a 12% discount. When a distributor places an order for 30 pumps, IFS automatically recognizes that the order falls within the 8% discount bracket. Instead of manually calculating a new price, the system adjusts the pricing automatically: $1,200 × 0.92 = $1,104 per unit. The customer is billed a total of $33,120 for 30 units, and the sales team benefits from reduced manual work, fewer errors, and consistent pricing across all orders.
Regards,
Nikila Dissanayake
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