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Tiered Pricing Model - What am I missing?

  1. #1
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    Cool Tiered Pricing Model - What am I missing?

    Units
    775

    Min Max Price
    1 250 $17.00
    251 500 $15.00
    501 750 $13.00
    751 1,000 $11.00

    I am trying to determine what I am missing above that is not producing the right result below. The formula I am working with is:

    =SUMPRODUCT(--(A1>{0,250,500,750,1000}),A1-{0,250,500,750,1000},{17,-2,-4,-6,-6})

    A1 is the # of units. The correct number is $11,525 (for 775 units) but I keep getting $10,875 with this formula so I am not sure what I am doing wrong. In case you are wondering the final "-6" I simply placed in there so the formula would actually produce a number otherwise it was "Value"

    I would appreciate some guidance.

  2. #2
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    Re: Tiered Pricing Model - What am I missing?

    Don't Ask Me how it works. It just does.


    =LOOKUP(A13,{"",0,1,250,500,750,1000},{"",0,17,17,15,13,11})
    My General Rules if you want my help. Not aimed at any person in particular:

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    Re: Tiered Pricing Model - What am I missing?

    Thank you, I greatly appreciate it.

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    Re: Tiered Pricing Model - What am I missing?

    This will return the result you're looking for:
    Please Login or Register  to view this content.
    Apparently the third set of numbers needs to be the difference from the previous rate, not from the original rate. I've never messed with this before this post, so I learned something new!

  5. #5
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    Re: Tiered Pricing Model - What am I missing?

    Here's a workbook using named ranges that accomplishes the task. I mimicked your data, but doing it this way doesn't require the Min column at all. There may be issues with this using a bigger or more complex data set.
    Attached Files Attached Files

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    Re: Tiered Pricing Model - What am I missing?

    Hello rpfohl. Welcome to the forum.

    Here's a reference that may help in the future.

    http://www.mcgimpsey.com/excel/variablerate.html
    Dave

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