Price Components of a combo

Let’s use an example to explain the price components of a combo.

In Store A, we have the following products.

Cheese Burger : $8

Fries: $4

Coke: $2

We also have the following modifiers.

Cheese +$1 , assigned to cheese burger.

A Burger Combo has been created with 3 sections, Main l Side l Drink where the above products has been added to the respective sections.

Combo Price : $11

Main: Burger

  • Ala-carte Price (w/o combo): $8

  • Additional Price (in combo): $2

  • Modifier Price: Cheese $1

Side: Fries

  • Ala-carte Price (w/o combo): $4

  • Additional Price (in combo): $2

Drink: Coke

  • Ala-carte Price (w/o combo): $2

Base Combo Price (without any additional prices and modifiers): $11

Total Combo Price :$10 + $2 +$2 +$1 = $16 (inclusive of additional prices and modifiers selected)

Formula for combo products' weighted pricing (with modifiers and additional prices)
Burger: 8/14 * 11 + 2 + 1= 9.29
Fries: 4/14 * 11 + 2 = 5.14
Drinks: 2/14 * 11 = 1.57

It should add up to $16 in total.

Note: All prices are rounded to 2 decimal places

Base combo price is required to calculate the weighted product price in a combo where no additional or modifier prices are involved. This is because additional and modifier prices are included OUTSIDE of the combo price itself that was declared when adding the combo in HQ product management.

For the following discount sub-section, we will be using the same combo listed above to illustrate the scenario.

How discounts are calculated for combo products


There are two main types of discounts, as well as two levels of discounts.

Note that the two levels of discounts are stackable.

Types of discounts

  1. Percentage

  2. Amount

Levels of discounts

  1. Product Level/ Combo Level

  2. Transaction Level

We will use the most complex scenario which is when both Combo Level + Transaction Level Discount is applied together with additional prices and modifiers.

Let’s say a 10% discount is applied to the combo, followed by a $2 discount being applied to the entire transaction.

Assuming we have 2 items in the transaction.

Combo A : $16 (Base Combo Price: $11)

  • Main: Burger

    • Individual Price: $8

    • Additional Price: $2

    • Modifier Price: Cheese $1

  • Side: Fries

    • Individual Price: $4

    • Additional Price: $2

  • Drink: Coke

    • Individual Price: $2

Item B: $5

Combo A price after 10% discount = $14.4

Combo A weightage of transaction level discount = 14.4/19.4 x 2 = $1.48

Combo products' weighted pricing in a combo (without modifiers)
Burger: 8/14 * 11 + 2 = 8.29

Fries: 4/14 * 11 + 2 = 5.14

Drinks: 2/14 * 11 = 1.57

Combo discount for each combo product item and modifier

Burger: 8.29/16 x 1.6 = 0.83

Fries: 5.14/16 x 1.6 = 0.51

Coke: 1.57/16 x 1.6 = 0.16

Cheese: 1/16 x 1.6 = 0.1

Transaction discount for each combo product item and modifier

Burger: 8.29/16 x 1.48 = 0.767

Fries: 5.14/16 x 1.48 = 0.475

Coke: 1.57/16 x 1.48 = 0.145

Cheese: 1/16 x 1.48 = 0.093

Total: 1.6 + 1.48 = 3.08 (combo and transaction discount on combo)

How points are calculated for combo products

Key variables affecting calculation:

Point Ratio

Additional Price

Tax Inclusive

Weightage of each product in the combo

Combo Lv Discount (% or $)

Transaction Lv Discount (% or $)

Points Formula for each product in a combo:

(( Individual Ala Carte Product price / total ala carte price of combo products x base combo price) + additional product price ) - ( combo product discount*) x points ratio

*only take into account if discount applies to the combo. This refers to a dollar/percentage discount on the combo or dollar/percentage discount on the transaction or a combination of the two.

(( Individual Ala Carte Product price / total ala carte price of combo products x base combo price) + additional product price ) - This is to calculate the weightage price of each product in the combo.

Essentially, the above calculation :

Burger: 8/14 * 6 + 2 = 5.43
Fries: 4/14 * 6 + 2 = 3.71
Drinks: 2/14 * 6 = 0.86

is using the formula stated.

Combo Level Discount Formula (for each product in the combo)

Weightage price of the product in the combo / Combo Price x Discount Amount

Discount Amount Example:

10% discount of a $10 combo = $1

OR

$1 dollar discount

Transaction Level Discount Formula (for each product in the combo)

Combo Price / Total Transaction Amount before GST and Service Charge x weightage price of the product in the combo x Discount Amount

Example:

Transaction has 1x combo A : $10 , 1 x Item B : $5

Total transaction amount before GST and Service Charge = $10 + $5 = $15

Discount Amount Example:

10% discount of a $10 combo = $1

OR

$1 dollar discount

Combo Level Discount + Transaction Level Discount Combination (for each product in the combo)

Substitute combo price with Combo price AFTER combo level discount to calculate transaction level discount

Thereafter, use the above to calculate Weightage price of product in combo AFTER combo level discount AND transaction level discount

Scenarios

Main: Cheese Burger (Additional Price: $2) (Ala Carte Price: $8)

Side: Fries (Additional Price: $2) (Ala Carte Price: $4)

Drink: Coke (Ala Carte Price: $2)

Combo Price: $10
Base Combo Price (without any additional prices): $10 - $2 - $2 = $6

Points ratio:

Burger : 1

Fries: 1

Coke: 2

Formula for combo products' individual pricing
Burger: 8/14 * 6 + 2 = 5.43
Fries: 4/14 * 6 + 2 = 3.71
Drinks: 2/14 * 6 = 0.86

Note: All prices are rounded to 2 decimal places

SCENARIO 1 - no discounts

Burger points - 5.43 x 1 = 5.43

Fries points - 3.71 x1 = 3.71

Coke points - 0.86 x 2 = 1.72

Total Points = 5.43 + 3.71 + 1.72 = 10.86 = 10 (rounded down)

SCENARIO 2 - Combo Level Discount is applied

Let’s say a 10% discount is applied to the combo

Burger points - 5.43 x 0.9 x 1 = 4.89

Fries points - 3.71 x 0.9 x 1 = 3.34

Coke points - 0.86 x 0.9 x 2 = 1.55

Total Points = 4.89 + 3.34 + 1.55 = 9.78 = 9

Note: All prices are rounded to 2 decimal places

Let’s say a $2 discount is applied to the combo

Burger points - 5.43 - (5.43/10 x 2) x 1 = 4.34

Fries points - 3.71 - (3.71/10 x 2) x1 = 2.97

Coke points - 0.86 - (0.86/10 x 2) x 2 = 0.30

Total Points = 4.34 + 2.97 + 0.30 = 7.61 = 7

Note: All prices are rounded to 2 decimal places

SCENARIO 3 - Transaction Level Discount is applied

Let’s say a $5 discount is applied to the transaction

Assuming we have 2 items in the transaction. Combo A : $10 , Item B: $5

Weightage of discount on Combo A = 10/15 x 5 = 3.33 (rounded to 2 d.p)

Burger points - 5.43 - (5.43/10 x 3.33) x 1 = 3.62

Fries points - 3.71 - (3.71/10 x 3.33) x1 = 2.47

Coke points - 0.86 - (0.86/10 x 3.33) x 2 = 1.14

Total Points = 3.62 + 2.47 + 1.14 = 7.23 = 7

Note: All prices are rounded to 2 decimal places

SCENARIO 4 - Combo Level + Transaction Level Discount is applied

Let’s say a 10% discount is applied to the combo, followed by a $2 discount being applied to the entire transaction

Assuming we have 2 items in the transaction. Combo A : $10 , Item B: $5

Combo A price after 10% discount = $9

Transaction price before transaction level discount = $9 + $5 = $14

Transaction price after transaction level discount = $14 - 2 = $12

Combo A weightage of transaction level discount = 9/14 x 2 = $1.29

Combo A price after transaction level discount = 9 - 1.29 = $7.71

Points after Combo Level Discount

Burger: 5.43 * 0.9 * 1 = 4.89

Fries: 3.71 * 0.9 * 1 = 3.34

Coke: 0.86 * 0.9 * 2 = 1.55

Points after Transaction Level Discount

Transaction level: $2 => combo product , items

4.89 - (5.43/10 * 1.29 x 1) = 4.89 - 0.7 = 4.19

3.34 - (3.71/10 * 1.29 x 1) = 3.34 - 0.48 = 2.86

1.55 - (0.86/10 * 1.29 x 2) = 1.55 - 0.22 = 1.33

Total points = 4.19 + 2.86 + 1.33 = 8.37 = 8

Did this answer your question?