When And How To Start Offering Discounts To Customers

Offering discounts to customers can be a powerful way to grow your business, especially if you run a wholesale store. If you are using WooCommerce payment options for your online store, discount strategies might be key to attracting new customers and retaining the ones you already have. The difference between a discount that builds your business and one that drains it comes down to strategy, timing, and a little bit of math.

In this article, we will guide you through when and how to start offering discounts to your customers, and why this strategy can help your wholesale business. We will cover the best ways to tell customers about discounts and the long-term benefits you can get from them.

Let’s get started!

Why Offering Discounts To Customers Works (When You Do It Right)

There is real psychology behind a good deal. Shopify’s overview of psychological pricing strategies explains that receiving a discount can release oxytocin, which makes shoppers feel happier and less likely to abandon their carts. A perceived saving creates a small emotional reward, which nudges people toward a purchase they were already considering.

Offering discounts to customers also gives you a controllable lever. You decide who qualifies, how deep the discount goes, and what action triggers it. That control is what separates a smart promotion from a panic markdown. The trick is to attach every discount to a clear business goal so you can measure whether it actually paid off.

For wholesale and B2B sellers, the calculus is slightly different from retail. Your buyers order in volume, order repeatedly, and compare prices across suppliers. A well-structured discount can lock in a loyal account for years, making the lifetime value far higher than that of a single retail sale. That is why offering discounts to customers in a wholesale context should lean toward volume incentives and loyalty rather than one-off flash sales.

Communicating discounts to customers

Telling your customers about discounts is really important if you want the discounts to work well. When you do it right, offering discounts to customers can feel like a real benefit and not just a trick to get them to buy. You need to make sure your customers know what they are getting and why it’s a good deal.

Imagine you are running a wholesale business. Wholesale customers often buy in large quantities, and discounts can be the push they need to complete a big order. Make sure you tell them clearly what kind of discount they will get. Whether it’s a percentage off for a big order or a special seasonal deal, be clear about how much they will save. For example, you can say, “Order 50 units and get 10% off!” or “This week only, get special pricing on our most popular products!”

In a wholesale business, offering discounts can help increase sales because it encourages customers to buy more than they originally planned. It creates a sense of urgency and adds value to their purchase. For those running an online store, discounts are also one of the best ways to grow your customer base. Discounts help build trust, which makes customers more likely to return and buy again. It’s a win-win for both the store owner and the customers—customers get a good deal, and you see more sales and happy customers.

The Margin Math You Cannot Skip

Before you launch any promotion, know your break-even. A discount lowers the revenue per unit, so you need extra volume just to stay even. Here is the simple version.

If your product sells for $100 with a 40 percent gross margin, you keep $40 per unit. Offer a 20 percent discount and your price drops to $80, leaving $20 of margin per unit. To earn the same total profit you made before, you now need to sell twice as many units. That is the hidden cost of discounting: a 20 percent price cut on a 40 percent margin requires a 100 percent jump in volume to break even.

Quick break-even formula:
Required volume increase = discount % / (gross margin % – discount %)
Example: a 15% discount on a 45% margin = 15 / (45 – 15) = 50% more units needed to break even.

Run this number for every discount type below. If a promotion cannot realistically drive that much extra volume, it is costing you money. Bigcommerce’s guide to ecommerce pricing strategies makes a similar point: discounting should be modeled against margin, not just topline sales, so you can see the true profit impact before you commit.

Offering Discounts To Customers: How And When To Do It

Offering discounts isn’t just about lowering prices randomly. You need a clear discount pricing strategy to make sure you get the most out of it. Here are 10 ways to offer discounts to your wholesale customers, with examples of when each one works best:

1. Reward loyal customers

One great way to offer discounts is to reward your loyal customers. These are the customers who keep coming back, so giving them a special discount can make them feel appreciated. You can base loyalty discounts on how often they buy from you or how much they have spent over time. This personal touch shows that you value them, and it makes them want to keep buying from you.

Example: Rewarding your loyal wholesale customers

You have a wholesale customer who has been buying from you for over a year and places big orders every few months. Offer them a 15% discount on their next order as a “Thank You” for their loyalty. If there are many customers, you could also use bulk email services to send them mass emails saying, “We really appreciate your support over the past year. As a thank you, we’re giving you an exclusive 15% discount on your next order!” This makes the customer feel valued and helps strengthen your relationship.

2. Quantity-based discounts

Wholesale customers usually buy a lot at once, so offering quantity-based discounts is a good way to encourage bigger orders. The more they buy, the more they save. This helps you sell more products and increases the value of each order.

Example: Encouraging bigger orders

Offer a 10% discount for customers who buy 100 units or more. If a customer planned to buy 80 units, they might decide to buy 20 more to get the discount. Imagine a customer who wants to restock but isn’t sure about the budget. By offering a discount for a bigger order, you can encourage them to buy more, which helps you and makes the customer feel they are getting a great deal.

3. Seasonal discounts

Use special holidays or times of the year to offer discounts. This could be during Christmas, Black Friday, or other busy times. Seasonal discounts help create excitement and make people want to buy before the sale ends.

Example: Black Friday discount

Offer a 20% discount during the Black Friday weekend to boost sales during this busy time. You could send promotional emails a week before to let your customers know about the upcoming sale: “Get ready for our biggest sale of the year! This Black Friday, enjoy 20% off all products for three days only!” This creates excitement, and the limited-time offer makes people want to act quickly.

4. First-time buyer discounts

Offering a discount to new customers is a great way to turn them into regular customers. A small discount can make them want to try your products, which can lead to a long-term relationship.

Example: First-time buyer offer

Offer a 10% discount to first-time buyers to encourage them to make a purchase. For example, if someone has visited your online store a few times but hasn’t bought anything yet, you can send an email saying, “We noticed you’re interested in our products! Here’s a 10% discount to help you get started with your first order.” This can be the little push they need to place their first order, and if they have a good experience, they might come back for more!

5. Bundle discounts

Bundle discounts encourage customers to buy more products by giving them a discount when they buy certain items together. This works well for products that are used together or complement each other.

Example: Bundle discount for related products

If a customer buys two related products, like a printer and printer paper, offer a 15% discount on both. For example, “Buy our high-quality printer and get 15% off printer paper!” This not only helps you sell more items but also makes the purchase more affordable for the customer. Bundling products can also introduce customers to items they didn’t plan to buy but would find useful.

6. Clearance discounts

If you have too much stock or items that aren’t selling, clearance discounts can help you clear space while still making some profit. These discounts are also helpful for making room for new items.

Example: Clearance sale to make room

Offer a 30% discount on items that are not selling well to make space for new products. Imagine you have products taking up space in your warehouse. You can run a clearance sale with a message like, “Clearance Sale: Get 30% off select items while supplies last!” This encourages customers to buy products they may not have considered before, helping you free up space.

7. Special event discounts

Offer discounts during special events like your store’s anniversary or when you reach a milestone. This is a great way to celebrate with your customers and give them a reason to buy.

Example: Anniversary celebration discount

For your store’s 5th anniversary, offer a 10% discount on all items for one week. Send your customers a personal email saying, “We’re turning 5! To celebrate, we’re offering 10% off everything in our store for the next 7 days. Thank you for being part of our journey!” This type of promotion helps drive sales and makes customers feel like they are part of your success.

8. Abandoned cart discounts

Sometimes customers add items to their cart but don’t finish the purchase. Offering a discount can encourage them to come back and complete it. This helps you recover lost sales.

Example: Recovering abandoned carts

Send an email offering a 10% discount if they complete their purchase within 24 hours. For example, “We noticed you left some items in your cart! Complete your purchase within the next 24 hours and enjoy 10% off your order.” This creates a sense of urgency and gives them a reason to finish the checkout process.

9. Limited-time offers

Creating urgency with a limited-time offer can encourage people to buy quickly. People don’t want to miss out on a good deal, so this type of discount can boost sales in a short time.

Example: Limited-time offer for large orders

“For the next 48 hours only, get 20% off all orders above $500!” Imagine a customer who is thinking about making a big purchase but hasn’t decided yet. By adding urgency with a message like, “Act now! This exclusive 20% discount is available for the next 48 hours only,” you push them to make the decision and complete the purchase.

10. Referral discounts

Encourage your current customers to refer new ones by offering a discount for every successful referral. Referral discounts not only bring in new customers but also reward your loyal customers.

Example: Referral discount to bring in new customers

Give customers a $25 discount when they refer someone who makes a purchase. For example, “Refer a friend and get $25 off your next order once they make a purchase!” You can also offer the referred customer a discount, like 10% off their first order. This builds trust through word-of-mouth, and people are more likely to buy when someone they know recommends it.

How To Set Up Discounts In WooCommerce

Strategy is only half the job. You also need a clean way to apply discounts to customers without manual coupon juggling. Inside WooCommerce, the cleanest approach is role-based and rule-based pricing rather than scattering coupon codes.

With Wholesale Prices Premium, you can set global or category-level percentage discounts, layer quantity-based tiers on top, and assign different discount levels to different wholesale user roles. That means a “Wholesale Bronze” account and a “Wholesale Gold” account can each automatically see their own pricing, with no codes to share or that expire. You can also control taxes, restrict shipping and payment methods by role, and set minimum order quantities so your discount and business rules stay aligned.

For broader retail-style promotions such as bundles, BOGO, loyalty points, and cart conditions, a dedicated coupon engine complements role-based pricing nicely. The key principle is the same either way: automate the rule so the right customer sees the right price at the right time, and so you never have to honor a discount you did not intend to give.

Benefits Of Implementing A Discount Strategy

Using a discount strategy can really help your wholesale business grow. Here are five major benefits:

1. Build customer loyalty

When you offer discounts, it helps build stronger relationships with your customers. If customers feel like they’re getting a good deal, they’re more likely to come back. For example, if a wholesale customer knows they’ll get occasional discounts, they’ll want to stick with your store instead of going to your competitors. These loyalty discounts make customers happy, and that encourages them to keep buying from you.

2. Higher average order value

Discounts, like volume-based or bundle discounts, encourage customers to buy more. This means bigger orders and more revenue for you. For instance, if a customer planned to buy 50 units, but you offer a discount for buying 100, they might decide to increase their order. This helps you clear inventory and also brings in more money per order.

3. Improved customer acquisition

Discounts are great for getting new customers. First-time buyer discounts or referral discounts can help bring in new customers. Imagine someone visits your store for the first time and sees a 10% discount on their first order—this might be all they need to decide to buy. Referral discounts also help you get new customers without spending too much on advertising. Once these new customers experience your products, they’re likely to become loyal clients.

4. Competitive advantage

By offering discounts, you can stand out from your competitors. In a competitive market, price matters. Imagine you’re competing with other suppliers offering similar products. By using discounts like seasonal promotions, loyalty rewards, or volume incentives, you add value that your competitors might not. This makes your business more attractive, and people are more likely to choose you.

5. Upscaling your wholesale business with Wholesale Suite plugins

Using tools like Wholesale Prices Premium allows you to set different discount levels, encouraging customers to buy more. Wholesale Order Form makes it easy for customers to place big orders without any trouble. Likewise, Wholesale Lead Capture turns potential leads into customers by offering exclusive discounts. Wholesale Payments offers flexible payment options, making it easier for customers to complete bigger orders. Together, these tools make managing discounts easier, giving your customers a smooth and rewarding shopping experience.

Communicating Discounts So They Actually Convert

A discount only works if the customer understands it. Be explicit about the value (“Save 15% on orders over $500”), the deadline if there is one, and any conditions. Vague or buried offers create confusion and support tickets rather than sales. For deeper tactics on framing and presenting offers, our guide on offering discounts to customers strategies and templates and our overview of bulk order discounts walk through wording that converts. HubSpot’s breakdown of the psychology of pricing is also worth reading, since how you present a price often matters as much as the number itself.

Transparency builds trust, especially with wholesale buyers who deal with you repeatedly. When the terms are clear and consistent, customers stop second-guessing and start ordering.

Conclusion

Offering discounts to customers is a powerful way to grow your business. By knowing when and how to give discounts, you can increase sales, attract new customers, and keep your current ones coming back. Whether it’s volume discounts or rewarding loyal customers, each type of discount can help your business in a different way.

In this article, we talked about when and how you can propose offering discounts to customers:

1. Why offer discounts to customers
2. Margin you cannot skip
3. How and when to offer discounts
4. How to set up discounts
5. Benefits

In the wholesale industry, discounts can make a big difference in getting larger orders and building long-term customer relationships. If you haven’t started offering discounts yet, now is a great time to start. Use the ideas in this article to start offering discounts in your WooCommerce store, and watch as your customer loyalty and sales grow!

Have questions regarding offering discounts? Let us know your thoughts in the comments below!

Frequently Asked Questions