The threshold discount allows users to specify dollar amount tiers that give discount dollars, percentages, or discount lines (to be explained later). In this blog we'll cover the different potential configurations of a threshold discount and go section by section to understand how to set them up.
There are many common forms and functions between this discount type and all other discount types. To understand those similar fields, read my other blog here. We'll go into the specifics of the threshold discount below.
Price/Discount Tab
All items in D365 have the ability to restrict whether they can be discounted or not from their released product details page. The below screenshot is where you'd set that up on the item itself:
This is in the Commerce fasttab of the released product.
By default, these are set to no. However, as soon as you set any of them to yes, threshold discounts handle them differently based on how we set the Price/Discount flag "Count non-discountable items toward threshold."
Setting this flag to No (which is what it is set at without doing anything), these items will not be discounted for obvious reasons, but also won't count toward the dollar amount that needs to be hit before a threshold discount applies. For example:
I sell 2 items for 50 dollars each.
I have a threshold discount of 10% off at 100 dollars
Item 1 of 2 is set to no discount allowed
If I have the flag set to No, the discount will not apply (only 50 dollars of item 2 will count towards the threshold). If I have the flag set to Yes, it will apply (both items will count toward the threshold), but only item 2 will receive the discount.
Threshold Discount Tiers Tab
The threshold discount tiers tab is where we set up the bulk of the discount's logic. In this tab, we say what the minimum dollar amount (before tax and charges) is to receive a discount.
We also specify the type of discount that we'll be giving. Here we have 3 options:
Amount off - This is a dollar value off the total of the eligible transactions
Percent off - This is a percentage of the total of the transaction lines off
Discount lines - This is a special type of threshold discount I'll discuss in detail a little later in the Discount lines section
Finally, we need to specify the discount value that is going to be given to the customer once they hit each tier.
Note here that we can have multiple tiers. This is a prime example of something that a lot of retailers do these days. For instance, the clothing store Express has a threshold discount where they have 3 tiers:
Spend 50, get 20 off
Spend 150, get 50 off
Spend 250, get 75 off
This is a typical Amount off threshold discount that can easily be configured using 3 different tier lines, amount off specification, and 20, 50, and 75 as the discount values.
Lines Tab
The lines section is where we specify which products are eligible for receiving the discount. Don't get this confused with which products are eligible to count towards the threshold. This is every item on the order as long as they aren't set to No discount allowed.
Threshold Discount Lines Tab
The threshold discount lines tab is unique in that it only appears when the discount type is set to Discount lines in the Threshold discount tiers section. Also note that when you select that discount type you can't select a discount value in the threshold tiers. That's because it's all driven by the discount lines now.
Essentially, this section tells us which items are getting the discount as opposed to just the items that we've specified in the lines tab. The anatomy of this would work as follows:
Hit dollar threshold specified in threshold discount tiers on items specified in lines
Items specified in threshold discount lines will receive their appropriate discount when the above is true
A real-world example of this would be "Buy 100 dollars in camping gear and get a free water bottle." In this case, the lines section would be for camping gear, the threshold tier would be 100, and the threshold discount line would show a discount % of 100% for item water bottle.
This works almost identically to how a simple discount works. If you'd like to understand how those work find my other blog about simple discounts here.
Summary
Threshold discounts are seen a lot of places, and it incentivizes shoppers to spend more money to receive a better discount. Offers of money off or free or heavily discounted items in return for spending more money will increase total cart size, increase total spend by the customer, and hopefully bring them back to the store for more deals.
As always, if you have any questions or want something covered in detail, please feel free to get in touch!
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