Create discounts
A Discount is a reduction in the price you charge for one or more products or bundles.
The Marketplace Manager can create Discounts as a promotional tool to help increase sales on your marketplace by offering lower prices on selected products. The reduction in price comes out of the marketplace owner's share of revenue: the amounts paid to the product Developers and other stakeholders are not affected. However, a Discount can increase overall sales by encouraging customers to take advantage of a special deal.
Discounts must be redeemed by the buyer, in one of two ways: automatically, or manually with a discount code.
You can configure discounts to apply as follows:
- To all products (one discount per marketplace)
- To one product and all its editions
- To one edition of a product and all its payment plans
- To one payment plan in an edition
Products including add-ons
Discounts that apply to only one product (or its editions or payment plans) apply to no other products, including add-ons. Add-ons are independent products and you can configure discounts for them as you can for any product.
Discount redemptions
When discounts are configured with a maximum number of redemptions, the following is true:
- When discounts apply to all products, one redemption is redeemed for each purchase.
- When discounts apply to a product, one redemption is redeemed when one or more units of a product is purchased (unless the discount is configured to apply to each unit).
- When discounts apply to an edition, one redemption is redeemed when one or more units of an edition is purchased (unless the discount is configured to apply to each unit).
- When discounts apply to a payment plan, one redemption is redeemed when one or more units of a payment plan is purchased (unless the discount is configured to apply to each unit).
When purchases require more discount redemptions than are still available, the remaining redemptions are applied to the products, editions, payment plans, or units until the redemptions are exhausted.
For example, suppose a discount applicable to all products, with two redemptions remaining, is applied to a purchase of three products. In this case, the discount is applied to only two of the products.
Prices and fees
Discounts apply to all prices and fees on the first invoice, and all prices on recurring invoices until discount limits are reached. For example, limits such as the maximum number of billing cycles a discount applies, if a maximum number is configured.
Termination fees
Discounts do not apply to termination fees. However, for percentage termination fees, discounts that applied to the subscription price are applied to calculate the value of the canceled contract period. For example:
Calculation for discounted canceled contract value with percentage termination fees
Termination fee | 70% of unused monthly charges |
---|---|
Remaining (canceled) months | 6 |
Price per month with discount | $50 * 50% discount = $25 |
Value of canceled contract period | 6 canceled months * $25 per month = $150 |
Termination fee calculation | $150 canceled contract value * 70% termination fee = $105 |
Decimals
You can enter discounts with up to 10 decimal places. However, when you save them, the system saves them to 8 decimal places and rounds them. For example, 20.8888888888 becomes 20.88888889, and 20.8888888811 becomes 20.88888888.
Metered usage
For metered usage, you can create only a percentage discount. The fixed price and discount-per-unit types are not supported, because metered usage is calculated after the usage period. When you create a discount for metered usage, the total fee amount is unknown. Because the total fee amount is unknown, and the associated discount is relative to the usage, you can only create a percentage discount for metered usage plans.
Expired discounts and created orders
It is possible to make discounts retainable, which means that they are redeemable on orders that are created before the discount expiration date, even if the discount has subsequently expired. However, it is only possible to set or change this setting with the API. See Configure retainable discounts.
Depending on the marketplace configuration and the discount configuration options that you select, you might not see all of the elements referenced in the following procedure.
To create a discount
📝 Note: If the AppDirect logo appears in the upper-left corner of the page, when Manage > Marketplace appears in this topic, click the grid icon > Switch to | Store, instead.
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Go to Manage > Marketplace > Products > PROMOTIONS | Discounts > Add Discount.
The Discount Details page opens. -
Select one of the following redemption options:
- Apply automatically—Discounts are automatically applied to a purchase that meets the discount criteria. Automatically applied discounts use the smallest payment structure, for example, a marketplace-wide discount is the largest payment structure and a tier-specific discount is the smallest.
- A product-specific discount overrides a marketplace-wide discount.
- An edition-specific discount overrides a product-specific discount.
- A tier-specific discount overrides an edition-specific discount.
- Enter code at checkout—Discounts are applied to a purchase after customers enter a discount code that you define and distribute to them. When you select this option, a discount code field appears along with the following options:
- Enter a single code—Enter a unique alphanumeric code. You must distribute this code to potential customers.
- Generate multiple random codes
- Apply automatically—Discounts are automatically applied to a purchase that meets the discount criteria. Automatically applied discounts use the smallest payment structure, for example, a marketplace-wide discount is the largest payment structure and a tier-specific discount is the smallest.