Discount Methods for Qualification Criteria (formerly Processing Functions)

Discount methods (formerly called Processing Functions) are often at the heart of the Qualification Criteria (QC) you use to power your redeemables, receipt tags, and more. They shape and control how and under what conditions a receipt is eligible for a discount, determine the order in which items are discounted, and group eligible items into a bucket to separate them from other ineligible receipt items

The following is a list and detailed description of each of the discount methods you can choose when creating Qualification Criteria:

Sum of Amounts

This function offers the most flexibility in terms of discount methods for QC. This function adds up the Line Item Selectors placed in the Line Item Filters and applies the discount (or any other pricing changes) to the subtotal of those items. For example, if you add a percent discount, then the discount is applied to those Line Item Selectors under your Line Item Filters. Or, if you add an Amount Cap, this will discount only up to that amount for the Line Item Selectors under your Line Item Filters.

Each of the Line Item Selectors you choose can be qualified with an optional inline function. These include:

• Maximum Unit Price: When present on the receipt, only the highest priced item under the umbrella of the Line Item will be discounted.
• Minimum Unit Price: When present on the receipt, only the lowest priced item under the umbrella of the Line Item will be discounted.
• Exclude: Use this to exclude Line Item from receiving any discounts. (Alcohol, for example).

Leaving these inline function fields blank defaults to the Sum of Amounts, meaning that the % discount (with or without an amount cap) will be applied to the sum of all items on the receipt that belong to the Line Item Selector(s).

Example

50% off Dessert with purchase of an Entree. Use the following set up: 

• Percentage of Processed Amounts: This is set to 50% as the discount.
• Line Item Filters: Desserts is the Line Item Selector to be discounted. Minimum Unit Price is selected to apply the 50% to the lowest priced the dessert on the check.
• Item Qualifier: A Entree item must exist in order for the dessert to be discounted.

Hit Target Menu Item Price

Using this function, a line item's price can be brought down to a static Target Price, regardless of price differences at different store locations. For example, you want to run a discount on a slushie for a fixed price of $2. Regardless of which store a guest goes to, they can buy any price slushie for $2. If the guest buys two or more slushies, they'll be able to get one (either the least expensive, most expensive, or all) of the slushies for $2. See the following example below:

	Target Price	Item Price at POS	Subtotal	Discount*	Final Price
One slushie purchased	$2	Med Slushie $5	$5	$3	$2
Two different slushies purchased	$2 each	Med Slushie $5 Large Slushie $6	$11	$7	$4

*Discount calculated based on the variable item price by location. 

Sum of Quantities

This function counts the quantity of qualifying Line Items on a receipt and sends that amount to an attached campaign (Post Checkin Offer Campaign).

For example, let's say we want to run a campaign that awards a guest double (2x) points on any burgers they buy (with a limit of five burgers per transaction). We'll choose "Burger" as our Line Item and enter "5" in the Amount Cap field.
For this function, the amount cap serves as a limit on the quantity of items, not the dollar amount.

Then, in our attached Post Checkin Campaign, we'll need to check the boxes for Use qualification criteria processed value for earn points calculation (the quantity sum determined by our QC above) and Use Reward as a Multiplication Factor and "2" in the Gift Points field (because we want to offer double 2x points). Now when a guest buys a burger (up to 5) they'll receive double points (rounded up using ceiled quantities, see Rounding Rules below).

Target Price For a Bundle (Advanced)

Using this processing function, admins can sort the qualifying items making up a bundle in decreasing/increasing order of price. For this there is a new configuration available against each Line Item Filter.

The original function "Target Price for a Bundle" supports discounting of multiple bundles but in case of multiple bundles being present on a receipt, the total amount of all the bundles put together is considered for discounting based on the configured target price. Each bundle is not considered individually for discounting.

Using this processing function, each bundle is evaluated individually for discounting.

Consider the use case where a business wants to discount the bundle of any two sandwiches and also discount as many bundles as qualify for discount with target price being $15. Each bundle is sized at 2 units and the sorting applied is decreasing order of price at POS (i.e. Maximum).

Using this function, all qualifying items will be arranged in decreasing order of price, items will be bundled in groups of 2. Following is an example explanation:

	Target Price	Item Prices at POS	Subtotal	Discount	Final Price
Entire Sample Receipt	N/A	BLT $8.39 Grilled Cheese $10.29 Grilled Cheese $3.79 Turkey $7.49	$29.96	$3.68	$26.28
First Bundle	$15	Grilled Cheese $10.29 BLT $8.39	$18.68	$3.68	$15
Second Bundle	$15	Turkey $7.49 Grilled Cheese $3.79	$11.28	$0	$11.28

Only the first bundle hits the target price of $15 and gets discounted by $3.68. The second bundle does not qualify for discount as the actual price of the bundle is $11.28 which is less than target price of $15.

Buy one get one (any item)

This function makes it so a buy one get one free (BOGO) reward will be given any time multiple items belonging to the same Line Item Selector are present on a receipt. For example, buy one burger get one burger free. So if a receipt has one Ranch Burger and a Veggie Burger, the lowest priced item will be discounted.

As with the BOGO Fixed Item, if the receipt includes multiple items that meet the criteria, the BOGO will discount only one pair of items.

Buy X Get Y

Use this processing function to configure quantity-based promotions where a guest receives a set number of items discounted or free after purchasing a specified number of qualifying items. This supports offer structures such as Buy 2 Get 1 (B2G1), Buy 2 Get 2 (B2G2), Buy 3 Get 1 (B3G1), Buy 3 Get 2 (B3G2), and others.

The qualifying item (Buy X) and the discounted item (Get Y) can be the same item or different items or item groups.

When you select Buy X Get Y as your processing method:

Line Item Filters: Add the item(s) that will receive the discount (the "Get Y" items), along with the quantity to be discounted.

Item Qualifiers: Set the condition the guest must meet to trigger the discount (the "Buy X" condition).

• Net Quantity Greater Than or Equal To is pre-selected by default and is required for this function.
• You can add additional qualifying conditions alongside this required one.
• If you remove Net Quantity Greater Than or Equal To and attempt to save, you will see the following error: "Item Qualifier must have 'Net Quantity Greater than or Equal to' condition for this discounting method."

Example

Buy 2 sandwiches, get 1 order of fries free.

• Line Item Filter: Fries (quantity: 1 — the item to be discounted)
• Item Qualifier: Sandwich, Net Quantity Greater Than or Equal To 2 (the guest must have at least 2 sandwiches on the receipt)
• Percentage of Processed Amounts: 100% (free) With this setup, when a guest's receipt includes 2 or more sandwiches and at least 1 order of fries, the fries are discounted by 100%.

Uniform Bundle Price

Use this processing function when you want to set a fixed target price for a bundle of two or more qualifying items. Punchh calculates the total discount needed to hit that target price and spreads it evenly across all items in the bundle, so every item shows the same final price on the guest's receipt. This works well for promotions like "2 Pizzas for $6.99 each," where you want the receipt to match what you advertised regardless of what each item originally costs.

If a qualifying item includes a modifier (for example, a pizza with an extra topping), Punchh uses the combined price of the base item and the modifier when calculating how the discount is distributed. You can also run multiple Uniform Bundle Price promotions in a single transaction. Each bundle is handled separately based on its own Line Item Filter and Target Price.

Example

Offer: "2 Pizzas for $6.99 each" Target Price: $13.98

	Target Price	Item Prices at POS	Subtotal	Total Discount	Final Price Per Item
Bundle	$13.98	Pepperoni Pizza $10 / Farmhouse Pizza $8	$18.00	$4.02	$6.99 each

Even though the discount amounts differ ($3.01 on the Pepperoni Pizza and $1.01 on the Farmhouse Pizza), both items end up at $6.99 on the guest's receipt.

Buy one get one free (fix item)

This function makes it so a buy one get one free (BOGO) reward will only be given if there are two of the exact same items. For example, buy one Ranch Burger get the second Ranch Burger free. If the receipt contains one Ranch Burger and a Veggie Burger, no discount will be granted.

If the receipt includes multiple items that meet the BOGO (fixed item) criteria, the BOGO will discount only one pair of items. This is a singular discount, meaning it will only be awarded once per receipt. So, if a receipt contains six burgers, four of which are Ranch Burgers, only a single pair will be given a discount.

Sum of Amounts Incremental

Similar to the Sum of Amounts function, this function adds up the Line Item Selectors that may receive a discount. However, unlike the Sum of Amounts, the Incremental function allows for the discounting of multiple sets on one receipt. The association of a qualifier to a line item filter allows the discounts to recycle and apply to multiple items on one check, (the qualifying item and the line item filter must be different items). This function allows for a maximum number of units that can be discounted and/or exclusion of items from bundling. 

Examples

Buy one adult entree, get a free kids meal (up to 5 per check). Use the following setup:

• Max Discounted Units: The maximum discounted units will be set to 5 to cap the discounted Kids Meals.
• Line Item Filter: For each Entree present, an associated Kids Meal will be discounted. (Option to use Qty.)
• Item Qualifier: An Entree must be present on the receipt for the discount to apply to the Kids Meal.

25% off a kids meal and drink with each purchase of an adult entree and drink. Use the following set up:

• Percentage of Processed Amounts: This is the 25% off discount that will be applied to the LIF that qualifies.
• Line Item Filter: For each Entree & Drink present, an associated Kids Meal & Drink will be discounted. (Option to use Qty.)
• Item Quality: An Entree & Drink must be present on the receipt for the discount to apply to the Kids Meal & Drink.

Receipt Subtotal Amount

This function applies a discount to the Receipt Subtotal Amount. The discount can be further restricted based upon a percentage or amount cap if desired.

Receipt Total Amount

This function applies a discount to the Receipt Total Amount. The discount can be further restricted based upon a percentage or amount cap if desired.

Rate Rollback

The Rate Rollback function allows you to discount a menu item by a certain value and also decide how many items you are wanting to discount. For example, if you want to discount $5 off of the first 3 pizzas you buy:

• The Maximum Discounted Units is set to 3.
• The Unit Discount is set to 5.
• The Minimum Unit Rate is set to 1, so the price remains even at the set price in the event the discount would have set the price to lower than the set threshold.

Static Redemption Amount

This function acts to give a set (static) discount straight off the top of a receipt total (pre-tax). You can choose a set dollar amount discount or a set percentage discount. If the receipt total is less than the static dollar discount, the total price will drop to $0.00 but will not go below that.

When using a static percentage discount, you may wish to set a maximum discount Amount Cap (20% off up to $10, for example). This guards against potentially huge discounts on bulk (catering) orders.