By Lauren Zimmermann on November 29, 2021
Have you ever been to the grocery store and noticed a discount for buying a larger package of ground beef, a bigger case of soda, or even a jumbo pack of toothpaste?
Cue, Volume Pricing.
Why does this happen? The manufacturer is willing to sell products at a lower price per unit in order to move out more inventory. We’ve likely all witnessed the effect of Volume Pricing on our buying decisions—whether we realized it at the time of purchase or not.
Volume Pricing, also known as Quantity Discounts, encourages consumers to buy larger quantities or products in bulk by rewarding them with a reduced price per unit. According to a survey by Inmar Intelligence, 35% of consumers admitted to purchasing a higher quantity of product than they otherwise would have due to a discounted price.
Bottom line—discounts can be hard for customers to resist.
This powerful feature can have a number of benefits on your business, customers, and sales. Volume Pricing allows you to:
Whether you’re a distributor, decorator, or dealer, Volume Pricing can have a tremendous impact on how you price and sell your products. Here are a few common scenarios.
You may have heard of these terms before to describe various pricing models. Do they all mean the same thing?
Not quite. Let’s break it down.
Volume Pricing offers a lower price per unit, the more units you buy. Plus, the price break is dependent on a single product variant. For example, a customer purchases 12 green shirts. Volume Pricing can also be referred to as Quantity Discounts, which more commonly involves multiple variants. For example, a customer purchases 6 green shirts and 6 red shirts.
On the other hand, Tiered Pricing is used for setting different price points for various consumer groups (e.g. consumers that are part of Team A will see a shirt priced at $4, while consumers that are part of Team B will see the same shirt priced at $5). Tiered Pricing can also refer to charging a different price per unit within specific ranges. For example, a shirt is $5 per unit for the first ten that you buy, then $4 per shirt after that.
Feeling like a pricing expert yet? Great. Now, let’s get you selling.
Log in to OMG and simply navigate to Edit Store > Products tab > Create Table to apply Volume Pricing to products on your storefront.
Still have questions? Check out our latest Help Center article for more information.
OrderMyGear (OMG) is an industry-leading sales tool, empowering distributors, decorators, and dealers to create sleek, retail-like online stores for every customer – big or small. Since 2008, OMG has been on a mission to simplify the process of selling branded products and apparel to groups and improve the ordering experience. With easy-to-use tools and unmatched support, the OMG platform powers online stores for over 3,500 clients generating more than $1.5 billion in online sales. Learn more at www.ordermygear.com.
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