Graduated pricing works one band at a time
In graduated pricing, each portion of eligible volume is priced at its own band. Consider a synthetic agreement: the first 500 orders are included, orders 501–2,000 cost £2 each, and orders above 2,000 cost £1.50 each.
At 2,001 orders, the approved example is £3,001.50: £3,000 for the 1,500 orders in the middle band and £1.50 for the final order. The included 500 orders stay included. This example excludes all other services and taxes.
Volume pricing selects a rate for a defined scope
In volume pricing, reaching a band selects a rate that applies to the agreement’s specified volume. The contract must say whether that scope is all orders, orders above an allowance, or something else. A table of thresholds without that explanation is incomplete.
A threshold may create a discontinuity: one additional order can change the rate on many orders. That behavior may be intentional, but both parties should understand it before the agreement becomes active.
Use boundary examples to settle interpretation
Test immediately below, exactly at, and immediately above every threshold. Record the expected result and the rationale. Include zero activity and any interaction with monthly minimums.
When proposing new bands, compare the same historical activity under both versions. A visual comparison is useful, but the approved examples and charge-level explanation are what make the change reviewable.