A better Pricing Features with Tiered Pricing and Cumulative Tiered Pricing

[momardia54]

ERPNext’s basic pricing model doesn’t meet the needs of businesses that demand flexible, competitive, and dynamic pricing strategies. If the pricing module requires scripting to achieve even moderately complex configurations, it defeats the purpose of a user-friendly ERP.

Specifically, it lacks features for cumulative tiered pricing and tier-based flat rate pricing, which are essential for industries requiring flexible and detailed pricing models. Adding these features will significantly enhance ERPNext’s utility and competitiveness.

Proposed Features:

1. Cumulative Tiered Pricing

Definition:

Allow pricing to calculate the total cost by applying the price of each tier proportionally to the quantity within that tier.
For example:
Tier 1 (1–10 units): $10/unit
Tier 2 (11–20 units): $8/unit
Tier 3 (21+ units): $6/unit
If a customer purchases 25 units:
10 units at $10/unit = $100
10 units at $8/unit = $80
5 units at $6/unit = $30
Total = $210

Use Case:

Commonly used in wholesale, where pricing per unit decreases progressively as quantities increase.

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2. Tier-Based Flat Rate Pricing

Definition:

Allow flat rates to be applied for specific tiers instead of per-unit pricing, while maintaining tier-based pricing for other ranges.
For example:
From 1–10 units: $50 flat (regardless of quantity within this range).
From 11–20 units: $8/unit.
21+ units: $6/unit.
If a customer purchases 15 units:
Flat rate for the first 10 units = $50
5 units at $8/unit = $40
Total = $90
Use Case:

Ideal for scenarios where small quantities need a fixed cost (e.g., packaging fees, setup costs) but larger orders follow tiered pricing.

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Case Example:

Imagine having a service that is charged depending on the number of page worked on. For 1 to 10 pages, we want to charge a flat rate of $650. For 11 to 30 pages we charge $650+ $100/pages. For 31 to 100 pages we charge $650 + $100x20pages + $90/pages.

This is a very common pricing model used for wholesales companies and services based companies. It's impossible to do it with ERPnext Pricing Rules.

Suggested implementation

Adding the Tiers directly to the Item when creating them and applying the rules using the pricing rules feature. For each tier we should be able to decide between a flat rate or an UOM based rate.