How to Setup WooCommerce Tiered Pricing? (Detailed Guide)

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create tiered discounts based on product in woocommerce

Do you have new products that require customer attention or slow-moving inventory that needs to be cleared?

Offering tiered pricing will help you boost sales of these specific products. Instead of pricing the product with a regular discount strategy, price them based on quantity.

In this blog, let’s learn how to set up tiered pricing in WooCommerce with detailed steps and discuss some best practices to make this strategy effective.

Although WooCommerce overlooked this feature, you have a WooCommerce tiered pricing plugin, “Discount Rules for WooCommerce – Pro,” at your disposal to customize tier prices.

What is WooCommerce Tiered Pricing?

WooCommerce tiered pricing allows you to set up different prices for your products based on the quantity a customer purchases.

This means you can offer discounts for buying in bulk or set wholesale pricing for specific customers or user roles.

A Simple Example For WooCommerce Tiered Pricing

Imagine you sell beverages and want to boost sales of Mango juice, which costs $16. You can price this product in different tiers to encourage customers to buy in larger quantities.

Buy 1 Mango Juice$16
Buy 2-3 Mango Juices$2 Fixed Discount on Each Unit
Buy 4-5 Mango Juices$4 Fixed Discount on Each Unit
Buy 6 or more$6 Fixed Discount on Each Unit

So, when a customer buys three mango juices, he can buy each unit for $14, which helps him save $6 on this order. This enhances his shopping experience and increases the average order value.

Create and customize tiered pricing in WooCommerce using the Discount Rules plugin to boost Average Order Value.

Benefits of Offering Tiered Pricing For WooCommerce

Offering tiered pricing for WooCommerce stores benefits you in many ways:

  • Increase Average Order Value: Tier pricing discounts encourage customers to add more to their cart than they originally intended to purchase, which increases your average order value.
  • Boost Sales and Revenue: Multi-layered pricing helps customers to stock their favorite products in bulk with huge savings, which increases your sales and revenue.
  • Enhance Customer Loyalty: Customers who buy specific products frequently in bulk can enjoy this tier pricing, as they can get discounts when buying large quantities. This enhances customer experience and retains them for future purchases, elevating customer loyalty.
  • Become a Wholesale Distributor: Tier pricing in WooCommerce is an effective tactic to attract wholesale customers who are buying bulk products for their stores. Due to effective tier pricing, they can easily become your regular customers in order to save money.

How to Setup WooCommerce Tiered Pricing?

Setting WooCommerce tiered pricing for products is quite simple. You only need the “Discount Rules for WooCommerce – Pro,” a tiered pricing plugin to create your pricing structure.

Create tiered pricing for specific wholesale customers using the Discount Rules plugin and enhance customer experience & loyalty.

Before creating the tier pricing in WooCommerce, make sure to install and activate the Discount Rules plugin on your WordPress dashboard.

We will discuss different scenarios for creating tiered pricing for WooCommerce stores.

Scenario 1: WooCommerce Tiered Pricing for a Specific Product

Example: Let’s create a pricing structure for a specific product, Mango juice, to boost its sales. We will offer a fixed discount based on quantities.

To create WooCommerce tiered pricing for a specific product:

  • After installing the plugin, go to “WooCommerce” and select “Discount Rules.”
  • Add a new rule and select “Discount Type” as “Bulk Discount.”
  • Filter the specific product to provide quantity tiers.
Creating tier pricing for a specific product-  filter the product
  • In the “Discount” section, set “Minimum & Maximum” buying quantities and discounts. As per the scenario, I choose “Fixed Discount” and set values for each quantity.
  • Save the rule.
Creating tier pricing for a specific product-  setting quantities and discounts

Multi-level pricing is applied to the product, and customers can get discounts based on quantities.

Showing tier pricing on a specific product page
Specific product price reduced based on tier discounts

Scenario 2: WooCommerce Tiered Pricing Based on Specific Customer Roles

Example: Let’s offer tiered pricing only for wholesale customers. We can apply a store-wide discount with a fixed cost per unit.

To create a tiered pricing based on specific user roles:

  • Select the discount type as “Bulk discount.”
  • Since it is a storewide discount, filter “All Products.”
  • In the “Discount” section, set buying quantities. Choose “discount type” as “Fixed price for item” and set value.
  • In the “Rules” section, select “Condition Type” as “User Role” and select a specific customer role as “Wholesale Dealers.”
creating tiered pricing for a specific customer role

When wholesale customers log in to the store and buy products, a fixed price will apply based on quantities.

Applying tier discounts for wholesale customers

Scenario 3: WooCommerce Tiered Pricing for Variable Products

Variable products provide a single product with multiple variations, and we can offer tiered pricing for variable products in WooCommerce.

Example: We can set tier pricing for a specific variable product with a percentage discount and few purchase conditions.

To apply tiered pricing for WooCommerce variable products:

  • Select the “Bulk Discount” type.
  • Filter the specific “Variable product.” Here I choose “Women’s Cardigan.”
  • Set buying quantities and choose the “Percentage Discount” type to set value.
  • Also, select “Count Quantities By” as “Individual product.” This option counts each product quantity individually without taking all product quantities.
    • For example, consider two products, A (3 quantities) and B (6 quantities), with a 5% discount for 1 to 3 quantities, 10%  for 4 to 6, and 12% for more than six quantities.
    • If you select the “Individual Product” option, 5% will be applied to product ‘A’ and 10% to product’ B.’
    • However, if you set “Count Quantities By” as “Filters Set Above,” it will take the total quantities as 9 (both A & B) and apply a 12% discount.
    • Select the option based on your sales goal.
Creating structured pricing for variable products - setting discounts
  • Optionally, in the “Rules” section, select the condition “Attributes” and select some attributes, such as color. Customers should add any of these attributes to their cart to get tiered discounts.
  • You can also set the expiry date for this rule. The rule discount will be invalid after the expiry date.
  • Save the rule.
Creating structured pricing for variable products - setting purchase criteria
Applying structured pricing discounts for variable products

Similarly, you can create tiered pricing for specific categories and set specific purchase criteria in the “Rules” section, such as cart total, number of orders made, specific users, or payment method. 

You can even create WooCommerce coupons for tiered pricing by selecting “Coupons” as a condition and setting your coupon code. Customers have to enter this code at checkout to get tiered discounts.

How to Customize Tiered Pricing Table for WooCommerce?

Tiered Pricing Table on Product Pages

The “Discount Rules” plugin also provides customization options for a tiered pricing table for WooCommerce. 

To do that:

  • Go to the “Discount Rules” settings page.
  • Scroll down to the product section. You can find the “Show Discount Table” option.
  • Click “Yes” and select “Customize Discount Table.”
  • A popup will display features to customize the discount table’s contents, such as the table header, title column name, discount column name and value, and range column.
    •  Customize these features based on your preferences and click “save.”
Customizing tier pricing table for product pages

Below this is the “Position to show discount table” option, which can change its display positions on product pages.

When Should You Offer Tiered Pricing in WooCommerce?

Implementing tiered pricing can significantly enhance sales, yet timing is critical to maximize its effectiveness.

  • Selling Bulk Products

Suppose you are selling products that are often purchased in large quantities, such as cosmetics, skincare, beverages, and household or office supplies. In that case, multi-tier pricing urges them to buy more, which boosts sales and revenue.

  • Increasing Wholesale Customers

Structured pricing can be offered for wholesale customers who buy in bulk for resale. Offering discounts to these specific customer groups can establish a long-term relationship and increase sales.

  • Clearing Inventory

If you have excessive old stocks or slow-moving products, offer discounts with layered pricing to clear these products and refill your inventory with fresh stocks.

  • Product Subscription Services

Tiered pricing can also be useful if you offer product subscriptions. Offering different discounts and deals based on each subscription stage can help you increase revenue.

Best Practices to Offer Tier Pricing

Following best practices for tier pricing will help you reduce risks, enhance customer experience, and boost sales. Here are some best practices to consider when offering products in quantity tiers:

  • Segment Products: Segment-specific products or product categories are eligible for tiered pricing, which makes it easy to apply tier discounts.
  • Set Clear thresholds: Clearly define the pricing of each tier with specific thresholds to help customers easily understand your pricing structure.
  • Personalize discounts: When offering discounts in tiers, personalize them to match customer preferences. This helps you capture target customers.
  • Customer Feedback: Get feedback about your pricing structure from verified customers to analyze whether it is effective for them.
  • Monitor Inventory and Sales: Frequently monitor inventory and adjust prices based on your stock level. It is also essential to monitor sales and update pricing based on the campaign outputs.

Offer conditional-based tiered pricing for specific products or categories using the Discount Rules plugin and increase sales.

Conclusion

Customers are looking for good deals when purchasing products in large quantities. Offering tiered pricing that matches customer preferences can acquire more customers and increase sales. 

With the right WooCommerce tiered pricing plugin like “Discount Rules for WooCommerce – Pro,” you can personalize your discounts and customize tiered pricing for specific products and customers. You have to strategically plan pricing to increase your average order value.

Also Read:

  1. How to create bulk discounts in WooCommerce?
  2. Detailed steps to set up quantity discounts in WooCommerce.
  3. How to create bundle discounts in WooCommerce?
What is wholesale tiered pricing in WooCommerce?

Wholesale-tiered pricing in WooCommerce is a pricing strategy in which wholesalers provide tier discounts based on the quantity of items purchased. This helps them get larger orders and potentially increase sales volume.

How does tiered pricing work?

Tiered pricing offers discounts or lower prices based on the quantity of items purchased. Typically, the more items a customer buys, the lower the per-item price becomes.
For example, a product might have a standard price, but if a customer buys a certain quantity (a tier), they receive a discount for each item in that tier. This incentive to purchase more items at once and benefits both the customer and the seller.

What is two tiered pricing structure?

A two-tiered pricing structure is a pricing strategy that offers two different price points or tiers for a product. Each tier usually includes distinct features, benefits, or discounts corresponding to its price. 

What is 3-tier pricing?

Three-tier pricing is a pricing strategy that offers three different price points or tiers for a product or service. 

How do you create a price tier?

To create a price tier, follow these general steps:
1. Identify the different quantity levels or customer segments you want to target with your pricing tiers.
2. Determine the pricing structure for each tier, including the base price and any discounts or adjustments based on quantity purchased or customer type.
3. Implement the pricing tiers in your sales funnel. 
4. Clearly communicate the pricing tiers to your customers through your website, marketing materials, or sales channels.
5. Monitor and analyze the effectiveness of your pricing tiers over time, making adjustments as needed to optimize sales and profitability.

What type of businesses do you think would be most affected by tiered pricing?

Several types of businesses can be significantly affected by tiered pricing, including:
1. Wholesalers and Distributors: Incentivize bulk orders with tiered pricing.
2. Software as a Service (SaaS) Companies: Offer tier pricing structure based on features or user levels.
3. Subscription-Based Services: Vary pricing tiers for different levels of access.
4. Manufacturers and Suppliers: Use volume-based discounts to offer discounts on larger orders.
5. E-commerce & WooCommerce Retailers: Encourage larger purchases with tiered discounts.

Is tiered pricing price discrimination?

Price discrimination refers to charging different prices to customers for the same product or service based on factors such as willingness to pay, demographics, or purchase behavior.

In tiered pricing, customers are segmented into different groups based on factors like quantity purchased, usage level, or desired features, and each group is offered a different price.

This allows businesses to capture additional revenue from customers willing to pay more while still offering lower prices to price-sensitive customers.

As long as quantity-based pricing is implemented transparently and fairly, it can be a legitimate pricing strategy to better serve customers’ varying needs and preferences.

What are the disadvantages of using tiered pricing?

While tiered pricing can offer several benefits, it also has some potential disadvantages, including:
1. Complexity: Managing multiple tiers complicates pricing structures.
2. Customer Confusion: Numerous options may confuse customers.
3. Perceived Unfairness: Some may view layered pricing as unjust.
4. Risk of Cannibalization: Lower tiers may undercut higher ones.
5. Administrative Burden: Maintaining tiers requires ongoing attention.
6. Segmentation Errors: Misidentifying segments can lead to missed opportunities.
7. Competitive Pressure: Rivals’ simpler pricing may pose challenges.
Businesses should thoughtfully consider and implement tiered pricing to maximize revenue while addressing diverse customer needs.

Is tiered pricing based on number of users?

Tiered pricing in SaaS or subscription-based businesses can vary based on the number of users, offering different levels of access for each tier. 
However, tiered pricing isn’t limited to user count and can also be influenced by factors like usage, features, or discount levels, depending on the business’s segmentation strategy.

What is the difference between tiered and flat pricing?

The main difference between tiered and flat pricing lies in how prices are structured:
1. Tiered Pricing: 
In tiered pricing, prices are set at different levels (or tiers) based on certain criteria, such as quantity purchased, usage levels, or features included. 
Customers pay different prices depending on which tier they fall into. For example, a product might have one price for purchasing 1-10 units, a lower price for purchasing 11-20 units, and so on.
2. Flat Pricing: 
Flat pricing has a single, uniform price for all customers regardless of the quantity purchased, usage levels, or other factors.
Everyone pays the same price for the product. This pricing structure is simpler and easier to understand, but it may not cater as effectively to customers with varying needs or budgets.

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Nanthini Sri

I'm Nanthini, an experienced marketer turned content writer. Specializing in B2B and ecommerce, I have a knack for simplifying intricate concepts, making industry insights easily accessible to all readers. When not crafting content, catch me immersed in books or binge-watching dramas!
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