Applying discounts to your bids

Discounts overview

If the purchaser enabled discounts for the event, you can offer discounts on groups of lots.

You can access the Discounts page from the navigation bar at the bottom of the page.

You can offer multiple tiered discounts of different proportionate values based on three different criteria:

• Number of lots awarded: You will offer a discount subject to you being awarded a specific number of lots. 
• Expected turnover: You will offer a discount subject to you being awarded a certain value of turnover.
• Volume: You will offer a discount subject to you being awarded a certain amount of volume.

For example, you can select a group of 10 lots that you want to offer discounts on, based on you being awarded a number of those 10 lots, or based on you being awarded a certain amount of turnover across those lots. In Sourcing Optimizer, this group of lots is called a bundle. You can create multiple bundles with different variations of lots and discounts.

Example using the Number of lots awarded criteria:

• Tier 1 Discount: If you are awarded between 3 and 5 lots, you will apply a 2% discount to those lots.
• Tier 2 Discount: If you are awarded between 6 and 8 lots, you will apply a 5% discount to those lots.
• Tier 3 Discount: If you are awarded 9 or more lots, you will apply a 10% discount to those lots.

Example using the Expected turnover criteria:

• Tier 1 Discount: If you are awarded between $50,000 and $100,000 in turnover across the bundle of lots, you will apply a 5% discount.
• Tier 2 Discount: If you are awarded between $100,000 and $250,000 across the bundle of lots, you will apply a 8% discount.
• Tier 3 Discount: If you are awarded more than $250,000 in turnover across the bundle of lots, you will apply a 12% discount.

To apply discounts to your bids, you must first create a bundle of lots, and then configure the tiered discounts you want to offer on that bundle.

Creating a bundle of lots

1. Name your bundle: Enter a name to identify your bundle.
2. Select lots to be included: Select the lots you want to include. You can filter the list of lots by their name.
3. Save bundle: Save the bundle.

To create a bundle, complete the following steps:

1. On the event page, in the navigation bar at the bottom of the page, click the Discounts tab.
2. In the top-left corner of the page, click Create bundle.
3. Enter a name for your bundle in the Name your bundle field.
4. Click the Select lots to be included list, and select the checkboxes of the lots you want to include in your bundle.
5. Click Save bundle.

Configuring tiered discounts for your bundle

1. Enable bidding: After you click the Enable bidding button, you can configure discounts.
2. Bundle: This area displays the details of the lots included in each bundle.
3. Bundle Actions: If you want to edit the name of a bundle, the lots included in a bundle, or delete a bundle, click Edit bundle.
4. Discount: You can configure the discounts you want to offer in this area.
   
   • Criteria: Two different types of discount criteria are available; Number of lots awarded, and Expected turnover.
   • Tier: You can configure up to three tiers of discounts. If you want to offer more than one tier of discount, ensure that you configure the tiers in ascending order, where Tier 1 is the lowest discount, and Tier 3 is the highest discount.
   • Threshold: Enter a value at which the discount will apply. In the example shown in Figure 3, the Tier 1 discount of 2% will be applied if 3 lots are awarded; the Tier 2 discount of 5% will be applied if 6 lots are awarded.
     In this example, the the type of value used as the threshold is the number of lots awarded. If you are using the Expected turnover criteria for your discount, enter the turnover value at which the discount will be applied as the threshold.
   • Discount (%): Enter the proportionate value of the discount you will apply when the threshold is met for each tier.
   • Discount Actions: If you want to discard the discount from your bundle, click Discard discount.

To configure tiered discounts for your bundle, complete the following steps:

1. In the top-left corner of the Discounts page, click Enable bidding.
2. Select the criteria you want to use for your discount from the Criteria list.
3. For each tier you are offering, enter the value at which the discount will be applied in the Threshold field.
4. For each tier you are offering, enter the percentage value of the discount in the Discount (%) field.
5. Click Submit changes.

Watch a video on applying discounts to bids