If the small box had an upper bound of only 10, then there would be a gap between boxes, where quantities like 10.25 can slip through. The upper tier is 11 because the big 50-pencil box uses 11 as the lower bound. So, the upper bound for the small 10-pencil box is actually 11. Upper Bound: The first quantity that the tier doesn’t support.In our pencil box example, the lower bound for the small 10-pencil box is 1. Lower Bound: The lowest quantity that a given tier supports.Name: A way for administrators to identify a given tier.A tier typically describes four important pieces of information. Technically, these boxes are “tiers” so we use that word from now on. To use block pricing, we need to define the sizes and prices of our boxes. You can learn about discount schedules in the Discounting Tools in Salesforce CPQ Trailhead module. If you need per-unit pricing for the different sized boxes, you’ll use a discount tool called discount schedules. If they ordered 11, they would then need the big 50-pencil box, so we would charge them $3. With this pricing structure, the customer should probably order 10 pencils since it’ll be the same $1 price. We’re charging them the price of the small box, not per-unit. Notice that we’re not multiplying $1 by 7 to charge the customer $7. In this case, the total price for the pencil quote line would be $1 since the 10-pencil box is sufficient for 7 pencils.

With block pricing, you price the pencils based on the box big enough to hold them all.

Now imagine your customer wants to buy 7 pencils. Each box has a price: $1 for the small 10-pencil box, $3 for the big 50-pencil box. Imagine that you have two boxes, one that can hold up to 10 pencils, and one that can hold 50 pencils.

Create an OverageRate field for per-unit pricing above certain quantities.

Create block pricing tiers for products that should be priced based on quantity.

After completing this unit, you’ll be able to:

Salesforce pricing tiers