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Tiered Pricing Question

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  1. #1
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    Join Date
    12-03-2010
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    NY, NY
    MS-Off Ver
    Excel 2007
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    Tiered Pricing Question

    Hello,

    Looking for some assistance with tiered pricing. Arg - this is driving me nuts!

    We rev share with a vendor based on a certain volume of units processed. Judging from some other threads I've seen nested IF statements, SUMPRODUCT, and others - what is the right tool/formula?

    Scenario:

    Units processed: 6,000,000

    1.5% of units = the amount of rev = 90,000

    The following tiers key off the units processed but corresponding % applies to rev share total.

    Tiers for fees paid by us to vendor
    0.00 - 1,000,000.00 = 50%
    1,000,000.01 - 3,000,000.00 = 25%
    3,000,000.01 - 5,000,000.00 = 15%
    5,000,000.01 - 8,000,000.00 = 10%
    8,000,000.01 - all others = 7%

    In "long hand" it works like this:
    1,000,000 = 15,000 * 0.50 = 7,500
    2,000,000 = 30,000 * 0.25 = 7,500
    2,000,000 = 30,000 * 0.15 = 4,500
    1,000,000 = 15,000 * 0.10 = 1,500

    6,000,000 (total units) = 90,000 (total rev) = 21,000 (rev share amount)

    The goal is to create a formula that produces the 21,000 number.

    Any help here is appreciated.

    Thanks
    Last edited by tgrant; 12-03-2010 at 03:11 PM.

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