Volume Discount Meaning & Examples
Definition
Volume discount is a pricing strategy that reduces the unit price of a product as the customer buys more. It encourages bulk purchases by offering better value at higher quantities.
Good or Bad?
Good, when used strategically. It can increase order size, reduce inventory faster, and appeal to wholesale buyers.
Why does it matter?
Not all customers buy in bulk, but when they do, a volume discount can be the push they need. It’s especially useful for B2B transactions, consumables, and repeat purchases.
Common Mistakes
- Offering volume discounts that cut too deeply into margins
- Not making the discount tiers clear to the buyer
- Applying discounts automatically without considering customer type or purchase history
How to Improve It?
- Use tiered pricing tables on product pages to show discounts transparently
- Set minimum and maximum quantity thresholds to avoid misuse
- Offer personalized volume discounts for loyal or wholesale customers
Recommended Plugin
Dynamic Pricing & Bulk Quantity Discounts for WooCommerce
This plugin helps you set up flexible volume-based discounts. You can create pricing tiers, apply them per product or category, and control visibility. It supports user role-based pricing, shortcodes for discount tables, and more.
Real-World Example
A stationery store offers pens at:
- 1–9 pens: $1.00 each
- 10–49 pens: $0.90 each
- 50+ pens: $0.75 each
A customer who originally wanted 20 pens sees the discount and decides to buy 50 to save more in the long run.
Related Terms
- Tiered Pricing
- Bulk Discounts
- Wholesale Pricing
- Dynamic Pricing
- Quantity Rules
FAQs
Can volume discounts be shown on the product page?
Yes. Many tools and plugins allow you to display a pricing table that updates automatically based on quantity.
Do volume discounts apply at checkout or per item?
Typically per item, but it depends on how your store is configured.
Can I limit volume discounts to wholesale customers?
Yes. Plugins often include user-role-based settings so discounts apply only to specific customer types.
