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Retail Discount Concurrency Control – Differences with Examples

Let’s have two examples to illustrate the difference between two discount concurrency models: pricing zone and compete within priority and compound across.

Example 1: three compounded discounts on one product, in two priorities.

Offer Details Priority
A 10% off compounded 99
B 20% off compounded 99
C 15% off compounded 0

Pricing zone

Two offers A and B from higher priority 99 would be compounded together, so A and B are compounded together. C is not applied.

Compete within priority and compound across.

Two offers A and B from higher priority 99 compete and offer B wins. Offer C of priority 0 would then be compounded on top of offer B. In the end, B and C are compounded together.

Example 2: add a best price discount D

Offer Details Priority
A 10% off compounded 99
B 20% off compounded 99
C 15% off compounded 0
D 35% off best price 99

Pricing zone

Two offers A and B from higher priority 99 would be compounded together, competing with best price D. D wins and C is not applied.

Compete within priority and compound across.

Three offers A, B and D from higher priority 99 compete and offer D wins. Offer C of priority 0 would then be compounded on top of offer B. In the end, D and C are compounded together.

Please note that there is no difference between compounded and best price here.

Related: Retail Discount Concurrency Control – Pricing Zone

Related: Retail Discount Concurrency Control – Compete Within Priority and Compound Across