Pricing hierarchy

Multiple prices can be configured for products. When more than one price is configured, a product pricing hierarchy dictates which price applies to transactions: the highest-level price in the hierarchy that applies to the purchaser and is configured applies. Customers pay either the marketplace sale price or a custom price, and resellers purchase products at the wholesale price that is applicable to all resellers, a wholesale price unique to the reseller company, or a wholesale price unique to a purchase.

The following table displays the pricing hierarchy.

Hierarchy level	Price type	Purchaser	Description	Set by	Default price	Configuration information
1 (Highest)	Selling price	Reseller customer	Set for a specific purchase on quotes and during assisted sales. The price the customer pays.	Resellers, Reseller Managers	Marketplace sale price	Resellers: Customize opportunities, Quotes, Purchase products on behalf of customers
2	Custom Reseller wholesale price	Reseller	Set for a specific purchase. The price the reseller company pays.	Reseller Managers	Reseller company wholesale price if there is one or the wholesale price	Quotes
3	Reseller company wholesale price	Reseller	Set for a specific reseller company. The price the reseller company pays.	Reseller Managers	Wholesale price	Manage the reseller catalog
4	Wholesale price	Reseller	The price that reseller companies pay.	Marketplace Managers	Marketplace sale price	Edit marketplace pricing
5	Custom marketplace sale price	Marketplace Customer	Set for a specific purchase. The price the customer pays.	Marketplace Managers, Sales Support Representatives	Marketplace sale price	Marketplace Managers: Purchase products on behalf of users SSRs: Purchase products on behalf of users, Customize opportunities
6	Marketplace sale price	Marketplace Customer	The price that marketplace customers pay.	Marketplace Managers	Developer price	Edit marketplace pricing
7	Developer price	Marketplace	The price that Developers suggest marketplaces charge for the product.	Developers		Edit editions and pricing

When users do not manually set prices, the default prices shown in the table apply. For example, when Marketplace Managers do not set Marketplace sale prices, the Marketplace sale price is the Developer price which is also the price that marketplaces pay Developers. In this scenario, marketplaces earn no margin on sales.

The differences between prices in the hierarchy result from pricing markups. When users mark up prices, it affects sales revenue gains and losses. For example, when Marketplace Managers mark up a $10 Developer price by $5 to set a Marketplace sale price of $15 for a product, the marketplace sales revenue per unit increases by $5. For more information, see Price markups.