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Quanity Based Pricing (QBP)
QBP is intended to accomplish two things:
1. Help offset shipping cost for small orders
2. Help offset office processing cost for small orders
This Quantity Based Pricing (QBP) technique is good for items sold by the foot. We should adjust the 'surcharge schedule' as nec to fit the product category, after considering shipping, handling, and order processing costs vs the price per foot of items in the category. Of course, the total sale for a given number of feet is the real comparison against cost.
See Form 417 Quantity Based Pricing for complete list of categories with QBP
From: Gregory Tatsch [mailto:email@example.com]
Sent: Sunday, April 19, 2015 3:13 PM
Cc: 'Roland'; 'Donna'; 'Tina'; 'Ellen'; 'Rita G'; 'Anna'; 'Sandy@vintagewoodworks.com'; 'SandyH'; 'firstname.lastname@example.org'; 'email@example.com'; 'firstname.lastname@example.org'
Subject: Quantity Based Pricing
At each of the above pgs you will see a new QBP paragraph AND a new QBP dropdown. Please go to one of these pages now, select a design/size, and note the price displayed. This is the base price, which is for a TOTAL of 10 or more Balusters (any combination of design/size) ordered at the same time from these 3 pages.
Next, choose each of the 3 QBP dropdown selections and note how the price changes when you select something other than “10 or more”. The dollar amount of price increase for ‘3 to 9’ and ‘1 or 2’ remains consistent on each of these pages, so if someone orders 4 Hemlock Balusters and 6 Plain Square Balusters, they should select ’10 or more’ from the QBP dropdowns at EACH of those pages, since they’re ordering a TOTAL of 10 Balusters.
Likewise, if someone orders 2 Plain Square Balusters and one 4” Cedar Baluster, they should choose ‘1 or 2’ from BOTH of those pages, since they’re ordering a TOTAL of 3.
If someone orders Balusters on 2 or more orders that can ship at the same time, the TOTAL qty of Balusters on all of these orders can be including for QBP consideration, but if someone orders Balusters after it’s too late to ship with a previous Baluster order, QBP will apply to the new order at the qty on the new order. Of course, if someone has placed a Balusters order, discovers they need a few more to complete their job, and ask if they can include their prior Baluster order for QBP, the answer is yes (but only if they ask.)
Because of their higher prices, I do not anticipate adding QBP to Sawn or Poly Balusters, but in the future I may add QBP to some more expensive non-Balusters items if they are more difficult to pack.
Holly thinks there are 1 or more places online (and maybe elsewhere) where we mention we don’t charge extra for small orders. If you recall any of these, or find them later, pls bring to my attention.
I anticipate we will eventually want to update ACT for each of the new price levels for each Baluster. Meanwhile, pls confer w/ Rhonda on the best way to enter these at the new prices.
Pls lmk if you have questions or suggestions, or if you get any negative customer feedback on QBP.