Tier Pricing

Tier pricing lets you define different prices based on the quantity a customer buys. This approach not only encourages bulk purchases by offering discounts for larger orders but also allows you to target specific customer groups with tailored pricing.

Column Explanations

• Customer Group:
  Defines which group of customers the tier price applies to. If left empty, the tier applies to all customers.

• Type:
  Determines how the price is applied. It can be either a fixed amount or a percentage discount.

• Min Qty:
  The minimum quantity required to qualify for this tier pricing.

• Max Qty:
  The maximum quantity for which this tier applies. If left empty, the tier price applies to any quantity above the minimum.

• Value:
  The price or discount applied when the quantity falls within the specified range.

warning

The Value column must contain an integer or float. The examples below use currency symbols and percentages for clarity, but only numeric values should be entered.

Examples

Example 1: Basic Tier Pricing

Imagine a product with a standard price of €20. With tier pricing, you can define:

• 1-4 pieces: The customer pays the standard price of €20 per unit.
• 5-9 pieces: The price drops to €18 per unit.
• 10 or more pieces: The price becomes €15 per unit.

Customer Group	Type	Min Qty	Max Qty	Value
All	Fixed	5	9	18
All	Fixed	10		15

Example 2: Customer Group-Specific Pricing

Suppose you want to offer different discounts for different customer groups:

• Regular Customers: Receive a 10% discount when they buy 5 or more items.
• Wholesale Customers: Receive a 15% discount when they buy 5 or more items.

Customer Group	Type	Min Qty	Max Qty	Value
Regular	Percentage	5		10
Wholesale	Percentage	5		15

With this setup, customers see tier pricing that is tailored not only to the order quantity but also to their customer group.

Tips for a Successful Setup

• Keep It Simple:
  The fewer tiers you have, the easier it is for customers to understand the pricing structure.

• Test Thoroughly:
  Ensure that your tier pricing works correctly by testing different purchase quantities and customer groups.

• Clear Communication:
  Clearly display pricing tiers on your product pages so that customers know about the potential discounts for bulk purchases.

Frequently Asked Questions

What happens if a customer buys a quantity that doesn’t match any tier?

If no tier is applicable, the customer will be charged the standard product price.

Can I set different prices for different customer groups?

Yes, you can define tier prices based on customer groups, allowing you to offer special discounts to targeted segments.

What if I don’t want to limit the maximum quantity for a tier?

Simply leave the Max Qty column empty. The tier price will then apply to any quantity above the Min Qty.

How can I keep the pricing structure simple?

Try to limit the number of tiers. Too many tiers can confuse customers, so aim for clarity and ease of understanding.