Successful wholesale is all about quantity. Encouraging customers to make large bulk purchases is key if your business will earn a profit. There are many strategies you can implement to accomplish this, including quantity based pricing.
By offering better discounts to customers who buy more products, you can make larger bulk purchases worth their while. With a help from Wholesale Suite, initiating this pricing structure is a breeze. Quantity based pricing ensures that customers get more value when they buy in larger quantities, increasing both sales and customer satisfaction.
In this post, we’ll give you a brief overview of quantity based pricing for wholesale and its benefits. Then, we’ll show you how to set it up in WooCommerce.
Ready? Let’s dive in!
What Is Quantity-Based Pricing For Wholesale?
To clarify, quantity based pricing involves offering increasing discounts to customers to purchase more items. For example, you might offer a ten percent discount to wholesale customers who buy 100 T-shirts, a 15 percent discount to customers who buy 200 T-shirts, and so on:
This incentivizes larger bulk purchasing. Your customers will be able to save on the products they need, and at the same time, you can bring in enough revenue to offset your wholesale discounts.
There are many other ways you can encourage wholesale customers to purchase more items as well. However, quantity based pricing is a smart technique to use because there are no negative effects for your customers if they don’t buy more of a product.
As a result, you can avoid scaring off buyers who may not be able to purchase larger bulk orders due to budget or space constraints. Furthermore, research shows that positive reinforcement is more effective for shaping customer behavior.
You may also read: How To Use WooCommerce Quantity Discounts To Grow Your Wholesale Business.
How To Implement Quantity-Based Pricing For Wholesale In WooCommerce (In 4 Steps)
Wholesale Prices Premium plugin includes several features that enable you to set up more complex pricing structures for your online wholesale store. This includes an option to implement quantity based pricing.
However, before you get started with the steps below, you’ll need to:
- Have a WooCommerce store
- Install and activate Wholesale Prices Premium
- Set up your wholesale customer role(s)
- Add a general percentage-based wholesale discount in Wholesale > Settings > Wholesale Prices > Discount.
Then, once you’ve completed these tasks, you can start on your quantity-based pricing structure!
Step 1: Set your quantity-based prices
First, navigate to Wholesale Prices Premium’s discount settings (Wholesale > Settings > Wholesale Prices > Discount):
Then, scroll down to the section labeled General Quantity Based Discounts. Select the relevant wholesale customer role from the dropdown, then add the first range for which you would like to apply an additional discount:
Next, click on the Add Mapping button to implement that discount, then repeat the process for additional quantity ranges. They’ll appear in a list:
You may edit or delete discounts as needed.
Step 2: Decide whether to apply quantity based prices to the whole cart or by product
Next, you’ll need to decide whether you want to apply your quantity-based prices to customers’ entire carts, or on a per-product basis. The former will enable buyers to receive a discount no matter which products they purchase.
This could lead to some customers buying small quantities of many different products, which may not have the effect you want. To avoid such a situation, check the box next to Apply discounts based on individual product quantities:
So, in our example, this means that wholesale customers have to buy a minimum of 100 of a specific product to receive an additional ten percent discount. If we left the box unchecked, they would receive the discount if they had any 100 items in their carts.
Step 3: Enable quantity-based pricing discounts
Lastly, make sure to check the box next to Enable general quantity-based discounts to implement your quantity-based pricing strategy:
Then, save your changes. Now, when wholesale customers view your products, they’ll see pricing tables like the one below:
If you would like the hide this pricing table, you can find the relevant setting under Wholesale > Settings > Wholesale Prices > General > Wholesale Products.
Step 4: Override general quantity-based pricing for specific users, products, and categories
It’s perfectly acceptable to stop here when implementing quantity-based pricing for wholesale in WooCommerce. However, Wholesale Prices Premium enables you to override the discounts you created in Step 1 for specific users, products, and product categories if you wish.
Set user-specific quantity-based prices
To create quantity-based discounts for a specific wholesale customer, navigate to their account settings in the Users section of your WordPress dashboard. Click on Edit, then scroll down to Per User Wholesale Prices Settings and look for Override Wholesale General Discount:
Set the dropdown to Yes. This will cause additional fields to appear. Enter a new percentage discount (required), then set the Override General Quantity Based Discounts dropdown to Define Alternate Quantity Based Discounts For This User:
Use the next dropdown to specify if quantity-based discounts should be applied to the customer’s total cart or individual products. You can then fill out the additional fields as we described in Step 1. Save your changes when you’re done.
You may also read: Deliver Better Customer Experience Using WooCommerce Wholesale User Roles.
Set product-specific quantity-based prices
To add quantity-based prices to a certain product, navigate to the item’s page. Under Product data > General, look for Product Quantity Based Wholesale Pricing and select the checkbox next to Enable further wholesale pricing discounts based on quantity purchased:
Fill in the resulting fields with the quantity range and discount information:
Then click on the Add Quantity Discount Rule button. Repeat this process for each quantity range and discount you wish to add. Note that you must have a product-specific wholesale price entered for this feature to work.
Set category-specific quantity-based prices
To apply quantity-based prices to an entire product category, navigate to Products > Categories and click on Edit under the relevant taxonomy. Then scroll down to the Quantity Based Wholesale % setting:
Check the box next to Enable further wholesale pricing discounts based on quantity purchased. This will reveal fields similar to those in Step 1 above:
Fill them out according to your needs, and repeat the process for each quantity range and discount. Keep in mind that you must enter a category-specific percentage-based discount for this feature to work. See our knowledge base article on this subject for more information.
Frequently Asked Questions
What is quality based pricing?
Quality based pricing is when a business sets the price of a product based on how good it is. If a product is high quality, it will have a higher price because customers expect to pay more for better materials, durability, or performance. On the other hand, if a product is lower in quality, it will have a lower price. This pricing method helps businesses charge fair prices that match the value of their products.
What is value-based pricing and example?
Value-based pricing is when a business decides the price of a product based on how much customers think it is worth. Instead of looking at how much it costs to make, businesses focus on the benefits and value the product provides. For example, a luxury watch brand may sell a watch for $5,000, even if it only costs $500 to make. People are willing to pay more because they see it as a valuable item due to its brand, design, and status symbol.
What is a quantity price?
A quantity price is a special price that changes based on how many items a customer buys. Businesses often use this in wholesale or bulk sales, where customers get a lower price per item if they buy in large amounts. For example, if someone buys one notebook, it may cost $10, but if they buy 10 notebooks, the price per notebook might drop to $8. This encourages customers to buy more to save money.
How to price quantity discounts?
To set a quantity discount, businesses first decide on the regular price of a product. Then, they create discount levels based on how many items a customer buys. The more items purchased, the lower the price per item. For example, a store might sell one t-shirt for $15, but if a customer buys five, they pay only $12 per shirt. Businesses must make sure that even with discounts, they still make a profit. Offering quantity discounts helps attract more buyers and increases sales.
What is the relationship between quantity demanded and price?
The relationship between quantity demanded and price follows the law of demand. This means that when the price of a product goes up, fewer people want to buy it. But when the price goes down, more people are willing to purchase it. For example, if a chocolate bar costs $1, many people will buy it. However, if the price rises to $5, fewer people will want to buy it. Businesses use this knowledge to set prices that will attract more customers while still making a profit.
Conclusion
Quantity-based pricing can help increase your wholesale WooCommerce site’s revenue by rewarding customers for making larger purchases. Using the Wholesale Prices Premium plugin, implementing this pricing structure takes just a few simple steps.
To summarize, let’s walk through the steps again:
- Set your quantity based prices in the plugin’s settings
- Decide whether to apply quantity based prices to the whole cart or by product
- Enable your quantity based pricing discounts.
- Override your general quantity based pricing for specific users, products, or categories
Do you have any questions about adding quantity-based prices in WooCommerce? Leave them for us in the comments section below!
