Product-Level Tier Pricing with Tax-Inclusive Pricing

Table of Contents

  1. Business Requirements
  2. Use Case 1: Final Price with Product Exclusion (Tiered Final Price)
  3. Use Case 2: Percentage Discount with Product Exclusion (Tiered Percentage Discount)
  4. Use Case 3: Fixed Discount Amount with Product Exclusion (Tiered Fixed Discount per Unit)

Three Ways

  • Tiered Final Price (Tax Inclusive)
  • Tiered Percentage Discount (Tax Inclusive)
  • Tiered Fixed Discount Amount (Tax Inclusive)

Business Wants

  • Configure product-level tier pricing using tax-inclusive prices.
  • Apply tier pricing based on the quantity of each product variant.

To set either pricing methods:

  • Tiered Final Price
  • Tiered Percentage Discount
  • Tiered Fixed Discount Amount
  • Ensure taxes are not recalculated during checkout for tax-inclusive markets.

Use Case 1: Tiered Final Price (Australia – GST Inclusive)

Cart Example

Customer Market: Australia (GST Included – 10%)

Product Variant Qty Base Price (Incl. GST) Final Unit Price (Incl. GST) Line Total (Incl. GST) Note
Outdoor Decking Tile Teak Finish 30 A$55 A$50 A$1,500 Customer belongs to the Australia market. Variant quantity (30) qualifies for the 25+ tier. Line total = 30 × A$50 = A$1,500 (Incl. GST). GST included = A$1,500 × 10/110 = A$136.36. GST is included in the displayed selling price and is not shown as a separate charge at checkout.
Outdoor Decking Tile Walnut Finish 15 A$55 A$52 A$780 Variant quantity (15) qualifies for the 10+ tier. Line total = 15 × A$52 = A$780. The final price already includes 10% GST (GST included = A$70.91). GST is included in the selling price.
Outdoor Decking Tile Grey Finish 8 A$55 A$55 A$440 Minimum tier quantity is not met. Line total = 8 × A$55 = A$440. The regular selling price already includes 10% GST (GST included = A$40.00).
Garden Hose 20 m 10 A$35 A$35 A$350 No tier pricing rule is configured. Line total = 10 × A$35 = A$350 (Incl. GST). GST included = A$350 × 10/110 = A$31.82.
     Total 63 A$3,070 GST is included in the displayed selling price and is not shown as a separate charge at checkout.

Rule Configuration

Product: Outdoor Decking Tile

Minimum Quantity Final Price (Incl. GST)
10 A$52
25 A$50
50 A$48
100 A$45

Use Case 2: Tiered Percentage Discount (United Kingdom – VAT Inclusive)

Cart Example

Customer Market: United Kingdom (VAT Included – 20%)

Product Variant Qty Base Price (Incl. VAT) Discount Final Unit Price (Incl. VAT) Line Total (Incl. VAT) Note
Office Monitor 27 Inch 60 £240 20% £192 £11,520 Customer belongs to the United Kingdom market. Variant quantity (60) qualifies for the 50+ tier. Line total = 60 × £192 = £11,520. The discounted price already includes 20% VAT (VAT included = £1,920). VAT is included in the displayed selling price and is not shown as a separate charge at checkout.
Office Monitor 24 Inch 30 £210 10% £189 £5,670 Variant quantity (30) qualifies for the 25+ tier. Line total = 30 × £189 = £5,670 (Incl. VAT). VAT included = £5,670 × 20/120 = £945.
Office Monitor 22 Inch 15 £180 5% £171 £2,565 Variant quantity (15) qualifies for the 10+ tier. Line total = 15 × £171 = £2,565 (Incl. VAT). VAT included = £2,565 × 20/120 = £427.50.
HDMI Cable 2 m 25 £18 Not Eligible £18 £450 No pricing rule is configured. Line total = 25 × £18 = £450 (Incl. VAT). VAT included = £450 × 20/120 = £75.00.
   Total 130 £20,205 VAT is included in the displayed selling price and is not shown as a separate charge at checkout.

Rule Configuration

Product: Office Monitor

Minimum Quantity Discount
10+ 5%
25+ 10%
50+ 20%
100+ 25%

Use Case 3: Tiered Fixed Discount Amount (United States – Sales Tax Included)

Cart Example

Customer Market: United States (Displayed Price Includes 8% Sales Tax)

Product Variant Qty Base Price (Incl. Tax) Discount / Unit Final Unit Price (Incl. Tax) Line Total (Incl. Tax) Note
Ergonomic Office Chair Black Mesh 40 $324 $20 $304 $12,160 Customer belongs to the United States market. Variant quantity (40) qualifies for the 40+ tier. Line total = 40 × $304 = $12,160. The discounted price already includes 8% sales tax (tax included = $900.74). Sales tax is included in the displayed selling price and is not shown as a separate charge at checkout.
Ergonomic Office Chair Grey Mesh 20 $324 $10 $314 $6,280 Variant quantity (20) qualifies for the 20+ tier. Line total = 20 × $314 = $6,280 (Incl. Tax). Sales tax included = $6,280 × 8/108 = $465.19.
Ergonomic Office Chair Blue Mesh 8 $324 Not Eligible $324 $2,592 Minimum tier quantity is not met. Line total = 8 × $324 = $2,592 (Incl. Tax). Sales tax included = $2,592 × 8/108 = $192.00.
Standing Desk Walnut Finish 12 $648 Not Eligible $648 $7,776 No tier pricing rule is configured. Line total = 12 × $648 = $7,776 (Incl. Tax). Sales tax included = $7,776 × 8/108 = $576.00.
      Total 80 $28,808 Sales tax is included in the displayed selling price and is not shown as a separate charge at checkout.

Rule Configuration

Product: Ergonomic Office Chair

Minimum Quantity Discount / Unit
20+ $10
40+ $20
60+ $30
100+ $40