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
Percentage
Amount
Levels of discounts
Product Level/ Combo Level
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 Level Discount (% or $)
Transaction Level 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