Pricing products in an art. You want to offer your customers a great deal and incentivize larger purchases, but you also want to keep your profit margins high. Finding the sweet spot for pricing can seem daunting, but what if we told you there’s room for multiple sweet spots?
Customers will often choose to buy 10 items for the price of 8 rather than stick with the 5 items they originally chose. With the Volume, or Tiered Pricing offer, you can set prices that make each customer more satisfied with their purchase, while also improving your bottom line.
Getting set up
Choose items to discount
You can go quite broad with the items that are eligible for the volume discount by either selecting specific products or collections. Then later in the ‘Set the Volume type’ section below you’ll see how you can get more specific for what counts towards the tier goal. It’s worth noting that volume discounts apply to all items above a minimum quantity as opposed to bulk discounts, which apply only to fixed quantities.
Set up your price tiers and discounts
Assign the quantity and discount amount for the first tier of the offer. You can choose whether the offer will use a percentage discount, dollar amount discount, or new price per item. You can choose from the following options:
- Discount percentage: For the Ruffled Blouse, get 5% off when you buy 2, 10% when you buy 4, and 15% when you buy 6 or more.
- Discount amount: For the Ruffled Blouse, get $2 off when you buy 2, $4 off when you buy 4, and $8 off when you buy 6 or more.
- New price: Get the Ruffled Blouse for $24.00 each when you buy 2, $22.00 each when you buy 4, and $20.00 each when you buy 6 or more.
Add another tier to extend the offer to include larger purchases and be sure to select the same discount type!
Set the Volume discount type
There are three types of discount you can choose from:
- Per product variant is when each variant of a product is checked against the volume tiers. For example, if our Ruffled Blouse had sizes like small, medium and large, the tier quantity would be required per size to get the discount.
- Per product is when products are checked against the volume tiers. For example, a customer would need to buy multiple of the same blouse to count towards the tiers. If they buy other products from the eligible collection, each separate product would need to hit the tiers separately.
- Per entire product selection is when both products and variants are checked against the volume tiers. For example, if a customer added one of each product from the eligible collection they would get the combined total items to count towards the tier goal!
Visibility and availability
Create urgency and draw attention to your sale using the sales badges and offer messaging. Here’s how the discount will show throughout your site:
- On the Collection page, your customers will see the sale badges if you have enabled them in the offer settings.
- On the Product page, a small table will show to highlight the tiers and the discounts.
- Finally, on the Cart page, there will be an inline message on the specific product. If a tier has been reached it will let the customer know. It will also mention the next closest tier for a potential increase in the cart!
If you would like to change the colors or appearance of the offer messaging, you can do that in the Appearance settings.
Tip: In the Availability section of the app admin, you can create a schedule for your offer. You can also choose who can take advantage of your offer by requiring customers to log in or creating custom links.Check out our support article for more details
Testing the offer
Start on the Volume Collection page here. We’ve set our offer settings to require the tiers per product, so go into any product and add the quantity of your choice. Then head to the cart to see further messaging!
How to get the most out of Volume offers
Encourage larger orders
Stores offering volume discounts motivate customers to purchase higher quantities to earn a better discount. This is a great method for clearing inventory and saving on shipping costs.
Plan your discounted products wisely
Choose products which have a higher profit margin, or markup products where you break even or make a smaller profit. You want to ensure that even with your discounted pricing, you will make a profit on your sale!
Test different ways to run the Volume offer
Try out the Volume offer with different products at different price points, and experiment with various tiers and discount types. This will allow you to see where the Volume offer is most effective and which products produce the highest margin with this deal type