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Minimum Pricing & Volume Discounting

Setting up the values for minimum pricing and volume discounting

Updated over 2 weeks ago

This article explains how to set up and use minimum pricing and volume discounting features for your products. These features allow you to adjust pricing based on the quantity sold.

❗Minimum price and Volume prices do not adjust automatically when the product sales price is updated


Permissions

You will require the following permissions to add or update these pricing structures, which are available under the Administration -> Teams -> Roles & Permissions -> Manage Settings section

pricing permissions

How to Setup

1. Minimum Pricing:

  1. Navigate to the Product Directory (Inventory -> Products -> Products Directory)

  2. Select to Edit the Product you want to configure.

  3. Locate the Minimum Pricing section.

  4. Enter the Minimum Price.

❗The minimum price applies to all units sold up until the threshold units.
Once the threshold is exceeded, the normal product pricing per unit will apply.

minimum price example

Example: Minimum Pricing

  • Product: "Prednisolone tablets"

  • Normal Price: $0.50 per unit

  • Minimum Price: $20 per unit

  • Threshold Units: 40 (calculates automatically based on the Minimum price set)

  • Scenario: If you sell <40 or =40 Prednisolone tablets, the price charged will be $20.

  • Scenario: If you sell >40 Prednisolone tablets, the price per unit will be $0.50 x quantity sold ($0.5. x 50 = $25)

‼️Calculation accuracy

Because we calculate pricing at the subunit level, some minimum‑price scenarios may result in totals that are a few cents below the stated minimum. This is not an error — it’s a result of working with rounded per‑unit values. Recurring decimals cannot be stored, so the system must round the per‑unit price before multiplying it by the quantity.

This ensures consistent, predictable math across all pricing rules, even though it means minimum pricing cannot be mathematically perfect in every scenario.

2. Volume Discounting:

  1. Navigate to the Product Directory (Inventory -> Products -> Products Directory)

  2. Select to Edit the Product you want to configure.

  3. Locate the Volume Discounting section.

  4. Click Add Volume Discounting

  5. Select whether to use Units or Subunits (Sub M.U) as the measurement quantity

  6. Enter the First Units and Last Units for the discount range.

  7. Enter the Discounted Price Per Unit within this range.

  8. Click Add Volume Discounting to add multiple discount ranges with varying prices.

❗Ensure that the ranges for different discounts do not overlap.

volume discounting example

Example: Volume Discounting

  • Product: "Nexgard"

  • Normal Price: $30 per unit

  • Discount Range 1:

    • First Units: 3

    • Last Units: 6

    • Discounted Price: $27 per unit

  • Discount Range 2:

    • First Units: 6

    • Last Units: 12

    • Discounted Price: $25 per unit

  • Scenario: If you sell 3 Nexgard, the price per unit will be $27 (totaling $81 for all 3 units)

  • Scenario: If you sell 8 Nexgard, the price per unit will be $25 (totaling $200 for all 8 units)


FAQs

  • Why doesn’t the system always just charge the minimum price when I add a large quantity?

    Minimum pricing is always respected, but Digitail must still calculate the sale price at the subunit level. This means we first determine the price per subunit, then multiply it by the quantity you’re charging. Because we cannot store recurring decimals, the per‑unit value is rounded before the final total is calculated.

    Example:

    • Minimum price: 19

    • Quantity added: 45 subunits

    How the system calculates the total:

    1. Divide the minimum price by the quantity:
      19÷45=0.422222...

    2. Round the per‑unit price to a storable value:
      0.42 per subunit

    3. Multiply by the quantity:
      0.42×45=18.90

    Final total: 18.90
    This is the mathematically correct outcome based on the required calculation flow, even though the minimum price is 19.

  • Can I use both Minimum Pricing and Volume Discounting for the same product?

    • Yes, both features can be applied to the same product. Minimum pricing will take effect initially, and then volume discounts will apply within the specified ranges.

📌When the minimum price quantity threshold overlaps with any volume discounting quantity range, the minimum pricing applies

  • What happens if the quantity sold falls between two volume discount ranges?

    • Normal pricing will apply

  • Does Minimum Pricing and Volume Discounting update is the product sales price changes?

    • No, the minimum and volume prices will need to be adjusted manually

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