Seller: Price Hierarchy

Introduction

This article explains the price hierarchy system that defines how Markups are calculated when multiple pricing configurations exist at different levels. Understanding price hierarchy helps Seller Admins configure pricing strategies that automatically apply the most specific Customer Price available.

In this article:

• Understanding price hierarchy levels
• Catalog level markups
• Subscription level markups
• Price hierarchy rules

Understanding price hierarchy levels

Price hierarchy determines which Markup applies when multiple pricing configurations exist for the same Offer or Customer. The Platform uses a priority system where more specific pricing overrides more general pricing.

Seller Admins can configure Markups at two primary levels:

• Catalog level: Pricing set in the Customer Prices section
• Subscription level: Pricing applied directly to individual Subscriptions

Catalog level markups

Catalog level Markups are configured in the Customer Prices section and can be set up with varying levels of specificity:

All offers for all Customers: Select "All" in the Customers field and "All" in the Offer field to apply a Markup to every Offer for every Customer.

Vendor-specific pricing: Select "All" in the Customers field and "Specific vendor" in the Offer field to apply a Markup to all Offers from a particular Vendor.

Offer-specific pricing: Select "All" in the Customers field and "Specific offers" in the Offer field to apply a Markup to selected Offers only.

Customer-specific pricing: On each Markup configuration level, you can specify individual Customers or Customer Segments to create targeted pricing strategies.

Subscription level markups

Subscription level Markups provide the most specific pricing and can be configured directly on the Subscription edit view:

Accessing Subscription markup

1. Navigate to Subscriptions in the Platform.
2. Select the Subscription you want to modify.
3. In the Price section, locate the "Markup/discount from seller" field.
4. Enter your desired Markup percentage.
5. Configure the "Markup Renew" option.

Markup Renew option: This checkbox determines how Subscription level Markups behave during Renewal:

Markup Renew ticked: The Subscription level Markup will be retained after Renewal. The specific Markup percentage configured on this Subscription continues to apply in subsequent Billing Cycles.

Markup Renew unticked: The Subscription will revert to the Catalog level Markup after Renewal. The Platform will apply whatever Catalog level pricing is effective at the time of Renewal.

Price hierarchy rules

The following table displays the hierarchy and the results when multiple pricing configurations exist:

How the hierarchy works

• More specific pricing always overrides more general pricing
• Customer-specific pricing overrides "All Customers" pricing
• Offer-specific pricing overrides Vendor-specific pricing
• Vendor-specific pricing overrides "All offers" pricing
• Subscription level Markup multiplies with (rather than replaces) Catalog level Markup

Example: If you have configured:

• Catalog level: 10% Markup on all Microsoft Offers for all Customers
• Catalog level: 15% Markup on specific Office 365 Offer for Customer ABC
• Subscription level: 5% Markup on Customer ABC's Office 365 Subscription

The final Price for Customer ABC's Office 365 Subscription will use: Vendor Price * 1.15 (Catalog level Offer-specific) * 1.05 (Subscription level) = Vendor Price * 1.2075.

Summary

Price hierarchy in the Platform ensures that the most specific Markup configuration applies to each Subscription. Catalog level Markups can be configured for all Offers, specific Vendors, or specific Offers, with optional Customer targeting. Subscription level Markups provide the highest level of specificity and multiply with Catalog level Markups rather than replacing them. The Markup Renew option controls whether Subscription level pricing persists through Renewals or reverts to Catalog level pricing. Understanding this hierarchy enables Seller Admins to create sophisticated pricing strategies that automatically apply the correct Price to each Customer and Subscription.