Pricing Strategies are used to calculate Subscription prices. A pricing strategy can be configured as a discount or markup from either the selling price per unit or the cost price per unit. This creates simple formulas for managing subscription pricing. For example, you can create a pricing strategy that maps to the suggested retail price for a product. Additionally, you can create another pricing strategy that adds 10% to the listed cost price for a product. Multiple pricing strategies can be configured at the global level. The formula always follows this form:

{Retail Price or Cost Price} has {X%} {Discount or Markup} applied to it.

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Markup vs margin calculations

Markup is the amount by which a price is increased, while margin is revenue minus the cost of goods sold.

Work 365 always calculates using markup, not margin. For more information, see Markup vs. margin.

At the customer account level, multiple pricing strategies can be assigned to align with the different options for subscription commitment terms. For instance, you can assign a retail pricing strategy to the monthly commitment term option and a 10% discount from the retail price for an annual commitment term. Customer accounts can only have one pricing strategy defined for each of the commitment term durations. Additionally, a default pricing strategy can be set as a catch-all for commitment terms that don't have a pricing strategy assigned.

Pricing strategies can also be set or overridden at the Subscription level. For instance, if a retail pricing strategy is defined for the customer at the account level, a subscription specific pricing strategy can be set as retail plus a 5% markup for a product that has extra service offerings included.

Examples

Below are some examples of Pricing Strategies

Retail Pricing

Formula: Retail Price is discounted by 0%.

Markup Retail Price

Formula: Retail Price is marked up by 5%.

Margin of 10%

Formula: Cost Price is marked up by 11.1%.