Vendors can offer volume-based pricing, allowing brands to receive discounted unit costs when purchasing larger quantities of a product. This makes pricing more flexible and transparent for customers.
What are volume-based costs?
Volume-based costs allow you to define different unit prices for different quantity ranges within a Purchase Source.
This helps ensure more flexible and transparent pricing when ordering from vendors.
How it works
When setting up a Purchase Source for a catalog item, you can now define multiple cost tiers based on the order quantity. Each tier specifies the unit cost that applies within a defined quantity range.
For example:
Quantity Range | Unit Cost |
0–999 | $10.00 |
1,000–4,999 | $7.50 |
5,000+ | $6.00 |
Each variant (e.g., blue hat, green hat) must meet its own minimum quantity to qualify for a discount. Quantities cannot be combined across variants or colors.
Setting up volume-based pricing
Open the catalog item and select a Catalog Item Variation.
Under Purchase Sources, choose a vendor or create a new one.
In the Cost Settings section:
To enable unit cost tiers switch on the "Enable volume-based cost" toggle.
If you enable unit cost tiers, you can define pricing ranges based on ordered quantity (e.g., 0–100 = $30, 101–1,000 = $25, 1,001+ = $20).
Save your changes.
The cost tiers are now stored for that vendor and will automatically apply when creating purchase orders.
Using volume-based costs in purchase orders
When a Catalog Item with tiered pricing is added to a Purchase Order, Settle automatically calculates the correct unit cost based on the order quantity.
The applicable cost tier is displayed next to the item.
A tooltip will show all available cost tiers and indicate which one applies.
The Projected Landed Cost updates dynamically based on the selected tier.
You can override the cost manually if needed — the system will mark it as a custom cost.
You can always reset it back to the default tier price with a single click.
Example
If you’ve defined the following tiers for your “Green Book” item:
Quantity Range | Unit Cost |
0–99 | $30 |
100–999 | $25 |
1,000+ | $20 |
Then:
Ordering 50 units applies the $30 cost.
Ordering 500 units automatically switches the cost to $25.
Ordering 1,000 units updates the cost to $20.
Please note that volume-based costs are available only on the Accelerate plan or higher.
Key points
Pricing is determined per variant — discounts are not shared across product variations.
The correct cost tier is always applied automatically in Purchase Orders.
You can override or reset costs directly from the PO.