## Price Calculation

There are two options for calculating a price for a product once it reaches a sell quantity greater than its nominated price points.

Note: this only applies to everyday pricing and not promotions.

The price calculation setting/toggle is known as *Use Quantity Rate*, it can be found via;

1.* Menu*

2. *Setup*

3. *General*

4. *Company*

5. *Company Settings*6.

*Use Quantity Rate*

For example, If a product had the following price points;

Quantity |
Price |

1 | $3.50 |

6 | $15.00 |

24 | $50.00 |

If *Quantity Rate* is **enabled** the price for the quantity of 7 will be $17.50

- $15 divided by 6 which equals $2.50. Multiply $2.50 by the quantity of 7

If *Quantity Rate* is **disabled** the price for the quantity of 7 will be $18.50

- $15 for the quantity of 6 plus $3.50 for the quantity of 1

## Family Price Distribution Method

The Family Price Distribution Method only applies when *Quantity Rate* is disabled.

There are two options for distributing the prices among products when part of a family. You can distribute the prices *Evenly* or *Match Price Points.*

The Family Price Distribution Methods can be found via;

1.* Menu*

2. *Setup*

3. *General*

4. *Company*

5. *Company Settings*6.

*Family Price Distribution Method*

For the example below, assume a family of products has the following price points;

Quantity |
Price |

1 | $5.00 |

4 | $15.99 |

24 | $70.00 |

The family price distribution methods would distribute the price as per below with the following quantities in the sell screen;

Product |
Quantity |
Match |
Evenly |

A | 4 | $15.99 | $16.79 |

B | 1 | $5.00 | $4.20 |

Total |
5 |
$20.99 |
$20.99 |

As seen in the example above the price for product A is higher than the normal 4 pack price when distributed evenly.

Another example looks as follows;

Product |
Quantity |
Match |
Evenly |

A | 1 | $5.00 | $4.20 |

B | 1 | $5.00 | $4.20 |

C | 1 | $5.00 | $4.20 |

D | 1 | $5.00 | $4.20 |

E | 1 | $0.99 | $4.19 |

Total |
5 |
$20.99 |
$20.99 |

The price distribution of Product E is significantly lower than the other products at the same price point which could result in a lower profit for that product (the overall profit for the sale will remain the same).

Another example could look as follows;

Product |
Quantity |
Match |
Evenly |

A | 12 | $47.97 | $36.00 |

B | 8 | $31.98 | $24.00 |

C | 5 | -$4.95 | $15.00 |

Total |
25 |
$75.00 |
$75.00 |

Whilst trying to maintain the 4 pack quantity pricing structure with the quantities of 12 & 8, the price for the quantity of 5 has become negative to compensate for the total price.

Evenly distributing the prices may require staff to educate the customer in some circumstances.

Matching price points with random quantities can result in unexpected prices.

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