How to calculate with tier mode Up to?

Introduction

This article explains how the UpTo tier mode applies fixed pricing regardless of the Quantity purchased within defined tiers. This pricing model is typically used for non-License Offers and ensures Customers pay a consistent Price based on their selected tier range.

In this article:

• Understanding the Up To tier mode
• Setting up Up To pricing tiers
• How pricing is calculated

Understanding the Up To tier mode

The "UpTo" tier mode applies a fixed Price for all units purchased within a defined tier, regardless of the actual Quantity ordered. Unlike other pricing models, this approach charges the same amount whether a Customer purchases one unit or the maximum Quantity allowed in that tier.

Setting up Up To pricing tiers

To configure UpTo pricing tiers:

1. Navigate to the Price section in Product Management.
2. Set the Billing Cycle (for example, Yearly).
3. In the Formula section, select "Quantity Price Table."
4. Configure the Quantity Control and set Tier Mode to "UpTo."
5. Define your pricing tiers in the table:
   • Tier 1: If the Quantity is up to 5, pricing from this tier applies
   • Tier 2: If the Quantity is up to 10, pricing from this tier applies
6. Enter the Cost Price and Suggested Retail Price for each tier.
7. To add additional tiers, select "Add new row."
8. Select "Preview" to switch to preview mode and validate your pricing configuration.
   

How pricing is calculated

The UpTo tier mode calculates pricing as follows:

Tier 1 example: When a Customer selects a Quantity up to 5, the Cost Price and Suggested Retail Price remain constant at the tier 1 values, regardless of whether they purchase 1, 3, or 5 units.

Tier 2 example: When a Customer selects a Quantity up to 10 (between 6 and 10), the Cost Price and Suggested Retail Price remain constant at the tier 2 values, regardless of the exact Quantity purchased within this range.

This pricing model sells all items for the Price of the corresponding tier row.

Summary

The UpTo tier mode provides fixed pricing within defined Quantity ranges, making it ideal for non-License Offers where Vendors want to charge a consistent Price regardless of the exact Quantity purchased within each tier. Product Managers can configure multiple tiers with different Quantity thresholds, and Customers will pay the flat rate associated with their selected tier.