Do you want to set up tiered quantity discounts for your items? The NetSuite Quantity Pricing feature allows you to set up and use quantity pricing. Let’s take a look.

NetSuite Quantity Pricing Overview

Quantity Pricing provides a way to automate discounts for bulk orders. Some companies may already be offering this kind of discount whenever a customer purchases certain amounts of items. With the NetSuite Quantity Pricing feature, you can set up quantity pricing schedules that define your quantity discounts and automatically apply discounts to qualifying orders.

NetSuite Quantity Pricing Setup

Let’s take a look at how you would set up your NetSuite account for Quantity Pricing.

Enable the Feature

First, you need to enable the NetSuite Quantity Pricing feature. You’ll find this feature on the Sales section of the Transactions tab in Enable Features.

Establish Quantity Pricing Preferences

Next, you’ll need to set your preferences for quantity pricing. There are two preferences specific to quantity pricing, and both are available on the Sales & Pricing section of the Items/Transactions tab in Accounting Preferences. First, you can set a maximum number of quantity-based price levels. The second quantity pricing preference is “Allow Quantity Discounts Per Price Level on Schedules.”
NetSuite Quantity Pricing Preferences

Create Quantity Pricing Schedules

To automate the process of setting up quantity pricing, you’ll use quantity pricing schedules. You can create any number of quantity pricing schedules. Then, when you select a specific quantity pricing schedule on an item record, NetSuite will automatically calculate the prices for each of your price levels based on the schedule. To create a quantity pricing schedule, navigate to Lists > Accounting > Quantity Pricing Schedules > New.
NetSuite Quantity Pricing Schedule

On the Quantity Pricing Schedule page, you’ll name the new schedule. On the header level, you have some options for how NetSuite will apply this pricing schedule. For example, if you want to measure quantity by a specific unit of measure rather than by the number of items, you would select the unit type and exact unit. The Calculate Quantity Discounts dropdown allows you to determine how NetSuite will measure quantities.

For a more complex way of measuring discounts, you could select the Use Marginal Rates checkbox. If you want to apply different discounts at the different amounts, you would select this checkbox. For example, you may want no discount to apply to the first 50 items in an order, a 3% discount to apply for the next 50 to 100 items, and a 5% discount to apply to the next 100+ items. This differs from how quantity pricing would normally function, where the same discount percentage would apply to every item in the order.

After you set up your quantity pricing parameters, you’ll enter the actual quantities and associated discounts. You’ll need to use a negative percentage for a discount; a positive percentage would result in a price markup.

Multiple Prices and Quantity Pricing in NetSuite

In our previous blog, we took a look at the Multiple Prices feature. How does the NetSuite Quantity Pricing feature interact with Multiple Prices? Let’s take a look.

If you open up one of your item records in edit mode and navigate to the Sales/Pricing subtab, you’ll see that NetSuite has listed out the active price levels in your account and has calculated the corresponding discounts or markups for each price level. Using the Quantity Pricing Schedule dropdown, you’ll be able to select one of your active pricing schedules. NetSuite will then calculate prices for all of your price level discounts and all of your quantity discounts.

Price Levels and Quantity Pricing on NetSuite Item Records

Conclusion

With the NetSuite Quantity Pricing feature, you can be sure that your prices are accurate for each quantity and price level. If you enjoyed this blog, be sure to subscribe to our mailing list below to receive each week’s latest NetSuite blog post directly in your inbox.