Tiered Pricing
Definition
Tiered pricing is a pricing strategy where the unit price of a product changes based on the quantity purchased.
Instead of one flat price, customers are encouraged to buy more by unlocking better per-unit prices at higher quantities.
Each tier applies only to the units within that range, not to the whole order.
Good or Bad?
Good?
- Motivates larger orders by rewarding quantity
- Appeals to both retail and wholesale customers
- Helps move inventory faster
Bad?
- Can be confusing if not clearly explained
- Requires proper configuration in WooCommerce
- Might reduce margins if not planned carefully
Why does it matter?
Tiered pricing is a smart way to increase average order value without forcing discounts across the board.
It also gives customers a sense of control over their savings, which can improve satisfaction and drive loyalty.
Stores that serve both retail and B2B buyers especially benefit from this strategy.
Common Mistakes
- Displaying unclear or misleading pricing tables
- Forgetting to show tier benefits on the product page
- Not setting minimum quantity rules properly
How to Improve It?
- Use clear tables or sliders to display tier levels
- Add tooltips or messages like “Buy 3 more to save 10%”
- Test tier breakpoints to find the most effective structure
Real-World Example
An online stationery shop sells notebooks at $5 each.
With tiered pricing, the customer sees:
- 1–4 notebooks: $5 each
- 5–9 notebooks: $4.75 each
- 10+ notebooks: $4.50 each
A teacher buying in bulk sees the savings and orders 12 instead of 4.
Recommended Plugin
Dynamic Pricing & Bulk Quantity Discounts for WooCommerce
This plugin allows store owners to set up flexible tiered pricing rules, display discount tables, and create bulk pricing strategies effortlessly.
Related Terms
- Volume Pricing
- Bulk Discounts
- Pricing Rules
- Quantity-Based Pricing
FAQs
Is tiered pricing the same as bulk pricing?
Not exactly. Tiered pricing applies different prices to quantities within specific ranges, while bulk pricing often applies one price to the whole order once a threshold is passed.
Can I show tiered pricing on the product page?
Yes, and you should. A clear pricing table helps customers make informed decisions.
Does WooCommerce support tiered pricing by default?
Not natively. You’ll need a plugin like Dynamic Pricing & Bulk Quantity Discounts for WooCommerce to implement it properly.
