I would like to calculate a volume based discount model. I would like to avoid using pricing bands as this creates a volume ‘tip’ where it would be cheaper to buy one more item.
Ideally I would like to provide a different price for each increment so that the unit price will reduce for every additional item purchased.
How would I create a formula that would create a price based on the number of items purchased. Typical volumes would vary from 30 to 5000.
For example:
The price per unit is 5usd, this price should reduce for ever increment until 2000 units, where the price should be 2usd. After 2000 units the price must remain at 2 (the lowest price).
I am not even sure if this is possible, I hope someone can help.
This question is too general from my pov - specify the details e.g. I want to calculate the volume price reducing x% per additional item starting with a price of y$ for the first item or anything like that (as long as you can specify any function for the decreasing unit price, it is definitely possible)
Thank you for the feedback, I will review the question now.
Hello,
please see the following sample calculation (it is just for demonstration purposes):
There are 4 input values (as per your additions to the question)
- Startprice per Unit
- Endprice per Unit
- Endprice at Item (Item where the final price should be reached)
- Number of Units
The rest of the entries are calculated from these four input values assuming a linear decrease of unit price
Volume-Pricing-Linear-Decrease.ods
Hope that helps.
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Thank you, that has worked well.