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How To Implement A Wholesale Discount In 6 Easy Steps

How To Implement A Wholesale Discount In 6 Easy Steps

If you’re a wholesale store owner looking to attract more retailers and outlets to your business, offering a wholesale discount to your customers can be an effective strategy. By selling large quantities of your goods at a lower price, you can incentivize customers to make more purchases, increase their loyalty to your brand, improve your sales volume, and ultimately boost your revenue.

However, to successfully offer a typical wholesale discount to your customers, there are several steps you have to take. Each step requires comprehensive research and well-thought-out tactics. For this reason, it would help to have an extensive guide indicating every little action you have to perform to get the whole thing right!

But what if you just want a brief overview of the entire process?

An easy yet informative guide that you can give a quick scan every time you need a reminder about what to do next. Join us as we share with you a quick, 6-step reference guide on how to successfully offer a typical wholesale discount to your wholesale customers!

What Is A Wholesale Discount?

Before we dive into how to implement a wholesale discount, let’s take a closer look at what it entails and why you may want to consider adding it to your pricing strategy.

Wholesale discounts are reduced pricing arrangements that businesses offer to wholesale customers. Typically, wholesale buyers are distributors, retailers, or other businesses that purchase products in bulk for resale or distribution purposes. Offering a wholesale discount to these customers incentivizes them to buy in larger quantities, ultimately leading to increased sales volume for your business. 

Implementing wholesale discounts benefits both your business and your wholesale customers. As a business, you enjoy a larger sales volume and economies of scale. Meanwhile, your wholesale buyers benefit from cost savings by acquiring your products at a lower price. 

Now that we understand the concept of a wholesale discount, let’s dive into how you can begin using this strategy to grow your business. 

How To Offer A Wholesale Discount: A Quick, 6-Step Reference Guide

Below are the six key steps to follow when implementing a wholesale discount:

Step 1: Determine the wholesale discount percentage

The first step in offering a typical wholesale discount to your customers is to determine the discount percentage you’ll offer. To arrive at an appropriate value, consider factors such as your profit margin, your competitors’ pricing, and your customer’s needs and expectations.

The typical wholesale discount percentage is between 10% and 50%. However, the deduction ultimately depends on your business and the products you’re selling.

Step 2: Communicate the discount to your customers

A wholesale discount is useless if no one knows about it. Therefore, once you’ve determined the discount percentage, you should communicate the price reduction to your wholesale customers.

You can accomplish this through a variety of channels, including email, social media, or in-person meetings. Clearly explain the terms of the discount, including the discount percentage, the minimum order quantity, and any other conditions that apply.

typical wholesale discount reference guide communicate your discount
Let your customers know about your wholesale discount

Step 3: Set a minimum order quantity

To ensure that your customers are taking advantage of the wholesale discount, it’s important to set a minimum order quantity. Basically, this is the number of items that a customer must purchase before they can enjoy lower prices.

A minimum order quantity will encourage customers to purchase larger quantities of your products. In addition, it will help you streamline your operations.

As mentioned in the previous point, be sure to communicate the minimum order quantity clearly to your customers.

Step 4: Create a pricing structure

To implement a typical wholesale discount strategy effectively, it’s important to create a pricing structure that reflects the discount.

This may involve adjusting your prices to account for the discount or creating a separate pricing tier for wholesale customers. Work with your accounting and sales teams to ensure that your pricing structure is accurate and sustainable.

Your pricing structure should take your discount into consideration
Your pricing structure should take your discount into consideration

Step 5: Monitor sales and adjust the wholesale discount as needed

To ensure that your wholesale discount strategy is effective, remember to monitor your sales and adjust the discount as needed.

Keep an eye on sales volume, profit margins, and customer feedback to determine whether or not the discount is driving the desired results. If necessary, make adjustments to the discount percentage, minimum order quantity, or other conditions to improve your results.

Step 6: Provide excellent customer service

In general, great customer service involves responding promptly to their inquiries, supplying accurate and clear product information, and providing flexible payment and shipping options.

However, where your wholesale discount is concerned, it means that you have to be ready to provide quick, comprehensible, realistic, and precise solutions to any concerns your customers may have about your special offer.

Such exceptional service can strengthen your relationship with your customers and promote their loyalty to your brand.

Excellent customer service is necessary for any business
Excellent customer service is necessary for any business

What Are The Benefits And Drawbacks Of Offering A Typical Wholesale Discount?

Why is offering a wholesale discount so important? Also, are there any drawbacks to selling your items in bulk at lower prices? Let’s explore the pros and cons of offering wholesale customers discounts.


Sell more products

Offering a wholesale discount incentivizes wholesale customers to purchase larger quantities of your products. As a result, your sales volume increases, which means higher revenues for your business. Having better cash flow also allows you to invest in critical areas of your business, including product development and marketing.

Gain a competitive edge

Implementing a tailored pricing model for your wholesale buyers can set you apart from the competition. By offering a wholesale discount, you position your business as a more favorable option for buyers than competitors that do not provide the same incentives. This competitive advantage can also help you attract new buyers and retain existing customers, potentially increasing your overall market share. 

Build stronger relationships with your wholesale customers

Providing a special discount to your existing wholesale customers demonstrates your appreciation for their loyalty and provides an incentive to continue working with you. In the long run, this can lead to repeat business, stronger partnerships, and referrals.

Offering a wholesale discount can help you foster better relationships with your customers
Offering a wholesale discount can help you foster better relationships with your customers


Potential impact on profit margins

Since providing wholesale discounts means offering your products at a lower price, it can potentially reduce your profit margins. Therefore, before implementing a wholesale pricing discount, it’s crucial to analyze its impact on your profitability.

It can benefit your business to conduct a cost analysis or explore opportunities to optimize your operations to lower costs, such as automating processes or negotiating better deals with your suppliers. 

Operational constraints due to increased demand

Offering wholesale discounts may lead to a surge in order volume, which requires maintaining larger inventory levels and ensuring efficient order management. To avoid errors and delays, it’s essential to have robust systems and order fulfillment processes in place. Consider leveraging digital solutions to improve efficiency, such as implementing inventory and order management systems

Offering wholesale discounts can increase sales volume, which requires streamlined inventory and order management
Offering wholesale discounts can increase sales volume which requires streamlined inventory and order management

Difficulty adjusting your pricing strategy in the future

Wholesale customers may become accustomed to discounted prices, resulting in resistance to price changes in the future. This could limit your flexibility when it comes to changing your pricing strategy

To address this concern, implement strategies to manage customer expectations. Engage in open and honest communication with your wholesale customers, explaining any factors requiring price changes. Additionally, keep abreast of industry trends, market changes, and customer feedback to determine when price adjustments are necessary.

Should I offer a wholesale discount or not?

Despite potential drawbacks, offering a typical wholesale discount can be a valuable strategy for wholesale business owners aiming to grow their client base and enhance their sales volume. We’ve outlined some key considerations below to help you decide if this is the right move for your business.

  • Revisit your business goals and objectives: Determine if offering a wholesale discount aligns with your current goals and objectives. For instance, it can be a viable strategy if you aim to attract new customers or increase brand loyalty. 
  • Assess product margins and profitability: Calculate whether increased sales volume can make up for the potential reduction of profit to ensure sustainability in the long run. 
  • Evaluate competition: How are your competitors approaching wholesale pricing and discounts? Assess if tweaking your pricing strategy is a necessary competitive edge in your niche. 
  • Understand your market: Conduct market research to identify your wholesale customers‘ needs, preferences, and buying behavior. This will help you determine if offering a discount aligns with their expectations and encourage them to make larger purchases. 

Additionally, follow the steps outlined in this guide to implement a discount strategy that works for your business. To minimize the risk of the drawbacks mentioned above, do your research and treat each step with the seriousness it deserves.

Wholesale Prices And Advanced Coupons

Discounts are such effective profit generators that they’ve inspired the creation of e-commerce tools that facilitate their creation and implementation.

For example, our very own WooCommerce extension, Wholesale Prices, boasts features that allow you to leverage the full power of discounts.

Wholesale Suite is the highest rated plugin for B2B wholesale in WooCommerce
Wholesale Suite is the highest-rated plugin for B2B wholesale in WooCommerce

To get an idea of how Wholesale Prices can help you, we recommend checking out the following articles:

Then, there’s Advanced Coupons, an e-commerce tool that gives you complete control over your sales promotions.

Advanced Coupons Premium is the top #1 coupon plugin in WooCommerce
Advanced Coupons Premium is the top #1 coupon plugin in WooCommerce

The following articles show how Wholesale Prices and Advanced Coupons can be used in combination to implement various types of discounts:


Offering a wholesale discount is a proven strategy for increasing customer loyalty and sales volume in the wholesale industry.

To summarize, you can implement a wholesale discount strategy by taking the following steps:

  1. Determine the discount percentage
  2. Communicate the discount to your customers
  3. Set minimum order quantities
  4. Create a pricing structure
  5. Monitor sales and adjust the discount as needed
  6. Provide excellent customer service

Do you have any questions about how to implement a typical wholesale discount strategy? Let us know in the comments section below!

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Michael Logarta Senior Marketer, Content Writer

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