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 or a wholesale price unique to the reseller company.

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 price	Set for a specific purchase on quotes and during assisted sales. The price the customer pays.	Marketplace Managers, Sales Support Representatives (SSRs), Resellers, Reseller Managers	Wholesale price that applies to the Reseller (Wholesale price or Reseller company wholesale price)	Marketplace Managers and SSRs: Purchase products on behalf of users Resellers: Purchase products on behalf of customers, Quotes Reseller Managers: Quotes
2	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
3	Wholesale price	Reseller	The price that reseller companies pay.	Marketplace Managers	Marketplace sale price	Edit marketplace pricing
4	Marketplace sale price	Customer	The price that marketplace customers pay.	Marketplace Managers	Developer price	Edit marketplace pricing
5	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.