A discount list contains one or more discounts. When structuring discount lists, it is better to include all quantity discounts that will apply to a particular product or service in one discount list.
Use quantity discounts to reward your customers
In this article a fictitious company, Wingtip Toys, is used to illustrate an example of a quantity discount pricing scenario. To set up this quantity discount structure, you will use information from this fictitious company and create a single discount list in the Microsoft Dynamics CRM Online product catalog. Then, you will create two discounts to add to the discount list; a discount for orders of between 11 and 20 units, and a second discount for orders of 21 or more units.
Note
The procedures in this article assume that the products and units are already established in the product catalog. For more information about how to create the product catalog and add items to it, such as products, units, discounts, and pricing methods, see the Microsoft Dynamics CRM Online Help.
Wingtip Toys is a small distributor of toy products. The company is developing methods to increase sales of their beach ball product. Therefore, Wingtip Toys decides to offer quantity discounts as a way to motivate customers to buy more beach balls. As a result of this decision, Wingtip Toys will use the following quantity discount pricing strategy:
Beach Balls
|
1 – 10 Units
|
11 – 20 Units
|
21 Or More Units
|
Price Per Unit
|
$1.00
|
$1.00
|
$1.00
|
Quantity Discount (percent)
|
0%
|
5%
|
10%
|
Final Price Per Unit
|
$1.00
|
$.95
|
$.90
|
Quantity Discount Schedule
To create the discount lists for this product using Microsoft Dynamics CRM Online, follow these steps:
Step 1: Create the discount list
- In the Navigation Pane, click System Settings, click Product Catalog, and then click Discount Lists.
- On the Actions toolbar, click New.
- In the Discount List form, enter the following information:
- Name
Enter a name with a length of 100 characters or less. The information should be meaningful and unique, such as Wingtip Toys Beach Ball Discount List.
- Type
Select the type of discount that will be applied to the product. You can choose a percentage, or a fixed amount. For this example, select Percentage.
- Click OK. The Discount List form appears. Leave this form open; it will be used to add the discounts in the next section.
Step 2: Create and add the discounts to the discount list
- In the Discount List form, under Details, click Discounts.
- Click New Discount. The Discount form appears.
- On the General tab, complete the following information:
- Begin Quantity
This is the beginning quantity that the discount will be applied to. For the first discount, with quantities between 11 and 20, Wingtip Toys wants a beginning quantity of 11. Therefore, type 11.
- End Quantity
This is the ending quantity that the discount will be applied to. For the first discount, with quantities between 11 and 20, Wingtip Toys wants an ending quantity of 20. Therefore, type 20.
- Percentage
This is the percentage amount that will be applied to this discount. For the first discount, with quantities between 11 and 20, Wingtip Toys wants a discount of five percent. Therefore, type 5.
- Click Save and Close.
- To create the second discount, in the Discount List form, click New Discount. The Discount Item form appears again.
- On the General tab, complete the following information:
- Begin Quantity
This is the beginning quantity that the discount will be applied to. For the second discount, with quantities of 21 or more units, Wingtip Toys wants a beginning quantity of 21. Therefore, type 21.
- End Quantity
This is the ending quantity that the discount will be applied to. For the second discount, the ending quantity must cover the highest possible number of units that can be sold. Microsoft Dynamics CRM Online supports up to 1,000,000,000 (1 billion). Wingtip Toys cannot support orders for more than 1,000 beach balls, so type 1,000.
- Percentage
This is the percentage amount that will be applied to this discount. For the second discount, with quantities of more than 21, Wingtip Toys wants a discount of ten percent. Therefore, type 10.
- Click Save and Close to close the Discount Item form.
- Click Save and Close again to close the Discount List form.
After the discounts are created, the discount list must be added to a price list so that the discounts are available for quotes, orders, and invoice generation. To add the discount list to a price list, follow step 3.
Step 3: Create the price list and add the product and discount list
- In the Navigation Pane, click System Settings, click Product Catalog, and then click Price Lists.
- On the Actions toolbar, click New.
- In the Price List form, enter the following information:
- Name
Enter a name with a length of 100 characters or less. The information should be meaningful and unique, such as Wingtip Toys Beach Ball Discounted Price List.
- Currency
Click the Lookup button and select the currency for this price list.
- Click Save. Leave the Price List form open.
Next, the price list items are added to this price list.
- In the Price List form, under Details, click Price List Items, and then click Add Price List Item.
- On the General tab, enter the following information:
- Price List
Microsoft Dynamics CRM Online automatically selects the price list that you created in the previous steps.
- Currency
Microsoft Dynamics CRM Online automatically selects the currency that you selected for the price list in the previous steps.
- Product
Select a product. For this example, select the Wingtip Toys Beach Ball product.
- Unit
Click Lookup to search for and select the unit that you want. For the beach ball product, select a unit that represents a single item because the beach balls are most commonly sold individually.
- Discount List
Click Lookup to search for and select the discount list that was created in steps 1 and 2, which is named Wingtip Toys Beach Ball Discount.
- Quantity Selling Option
Select a quantity selling option. This defines the type of quantities in which the product is sold. Because Wingtip Toys does not sell portions or fractions of a beach ball, select Whole.
- Pricing Method
For this example, the pricing method will be set to the default, which is Currency Amount.
- Amount
Enter the base cost that the product will list for. For the beach ball product, type 1.
- Click Save and Close to close the Price List Item form.
- Click Save and Close to close the Price List form.
The quantity discounted price list is ready and will automatically calculate the discounts based on the quantity amount for quotes, orders, or invoices.
Related Links
Create a price list to use for a sales promotion
Build price lists for multiple customer segments
