Setting Up Tiered Pricing (or Volume Pricing) for a Single Product

Overview

One way to attract and convert buyers in your store may be through tiered pricing: offering different price points when volume is the key differentiator. Tiered pricing is especially welcome to educational buyers and businesses with multiple employees who will be using your software. In the digital products world, offering customers an incentive of lower per-unit pricing as more products are purchased is very appealing because the cost of selling an additional unit of your product is minimal as creating another license key for a piece of software requires no additional cost. Additionally, perceived value is an intrinsic part of human nature and many customers will buy the tier higher than the one they actually need because it is perceived to be a better deal. This article will help you create volume discounts based on quantity tiers for one specific product. For information on discounts that take into account the quantity of all the products in an order, see Setting Up Volume Discounts Across a Set of Multiple Products.

Tiered Pricing Setup

Once you add your products, go to SpringBoard's Store Home » Products and Pages. Select the product onto which you would like to set up tiered pricing. Click Prices.

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Click on your Fixed Price. Select Quantity Tiers for Type.

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Click to Add Quantity Tiers. Enter in the Tier Quantity that needs to be reached before the Tier Price is offered. In our example, when a customer purchases a minimum of 5 units, the per unit Tier Price displayed will be $80. Depending on your Currency Settings, you may be able to click on the + sign, which will allow you to enter in prices in country currencies other than USD. Click Add. If you wish to add another Quantity Tier that will result in a further discounted per unit price, repeat this process. When you have added all of your Quantity Tiers, click Save.

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Caution: When creating volume pricing, the goal is to make more profit with additional units purchased. When choosing the discounted Tier Price, be sure to calculate the total cost for a customer purchasing your Tier Quantity minimum and compare that to the total cost for a customer purchasing one unit under your Tier Quantity minimum. In our example, a customer who purchases 4 units at $100 per unit will pay a total of $400. On the other hand, a customer who purchases 5 units at $85 per unit will pay a total of $425, so the overall profit increases. If, on the other hand, the Tier Price for purchasing 5 units was set to $80 per unit, then a customer who purchases 5 units will pay a total of $400 and no additional profit is made. And if the Tier Price for purchasing 5 units was set to $75 per unit, then the total price would be $375 and offering the volume pricing would be losing you money.

Testing Tiered Pricing

If you go to store testing, you can see that tiered pricing now appears in the order process. If you click on Volume Pricing Available, a pop-up window will show your tiered pricing. 

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If you would like to change the background appearance of this pop-up window to more closely reflect the look and feel of your website, add the following code to the end of the CSS file in your Custom Store Style and edit it accordingly.

.core-dialog {
    background: none repeat scroll 0 0 #FFFFFF !important;
}

We're Here to Help

If you need assistance with setting up volume discounts across a single product, please open a support ticket.

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