# Price Group Inheritance

Starting with version 10.5, a price group can inherit from another price group. This feature enables a derived price group to automatically adopt all product prices set in its base price group. If a specific product price is defined in the derived price group, this price will take precedence when working with that price group. Because product prices are adopted, a derived price group is locked to the same currency as its base price group.

{% hint style="info" %}
If this capability is not needed, it's recommended to avoid creating derived price groups.
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## **Common Use Cases**

### **Segment-based Pricing**

Derived price groups are handy for assigning different prices for a subset of products to certain customers, organizations, or customer groups while keeping the default price for all remaining products. Simply define all base prices in a base price group. Then let the segment-specific price groups derive from the base and set only the segment-specific prices on the corresponding price groups. This way all segment-specific price groups will inherit all base prices for products not defined directly in it.

### Shared Pricing with Different Tax Rates

Derived price groups are also handy in e.g. the US/EU where the currency and unit price might be the same, but the sales tax/VAT varies by state/country. Simply define all prices in a base price group and create a derived price group for every state/country with the right tax rate for that state/country. This way customers in e.g. CA or Germany will see prices from the base price group, but with the correct tax applied.

## **Limitations**

The default limit for the depth of a price group inheritance tree is **10**. To change this, set the `Ucommerce:Core:MaxPriceGroupHierarchyDepth` setting in your app configuration.

{% hint style="warning" %}
Be careful with deeply nested price group trees. It can significantly impact performance. The feature is not designed for extensive hierarchical depth.
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