Magento 2 Tiered Pricing - Increasing The Sales
Tiered Pricing is a marketing strategy that promotes customers to purchasing more with discount price. Magento gives you full authority to handle the Tiered pricing.
Tiered Pricing is a marketing strategy that promotes customers to purchasing more with discount price. It is same as the Volume pricing, but the difference is Tiered pricing change in a price range and Volume pricing change all the unit price.
Example: A store divided shirts into three price tiers:
- Tier 1: 1-20 shirts cost $10 per shirt.
- Tier 2: 21-30 shirts cost $9 per shirt.
- Tier 3: 31 shirts or more cost $8 per shirt.
When customers buy 35 shirts:
- If the store use Tiered pricing:
- The first 20 shirts are billed at $10, total cost: $200
- 21-30 are billed at $9, total cost: $90
- 31-35 are billed at $8, total cost: $40
=> Total cost: $330
- Using Volume pricing: All 35 shirts are billed at 8 => Total cost: $280
So, as you can see, both Tiered and Volume pricing are considered a discount method to increase your sales performance.
Although Magento does not support the Volume pricing, it provides you a solution to handle the Tiered pricing.
How to Setup Magento Tiered Pricing?
Step 1: In Admin Panel, tap Catalog -> Products
Choose which products you want to configure the price and Edit it.
You can choose which Store View you want to change.
Step 2: In Price section, click on Advance pricing
In advance setting, you can set Special price in a period, this can help your discount strategy.
Step 3: Config the price
You can change the Customer group, Quantity for this price and the most important is to choose the change of price as a Discount (percentage) or as Fixed (money)
Then click Done.
And Done! The Tiered pricing are set on your product.