[OMG Update] Sell More with Volume Pricing

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.

The Benefits of Volume Pricing

This powerful feature can have a number of benefits on your business, customers, and sales. Volume Pricing allows you to:

1. Incentivize customers to place larger or bulk orders.
2. Diversify how you price and sell products, helping you win new business.
3. Simplify how you offer quantity discounts without coupons or workarounds.

Use Cases

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.

• Incentivize Larger Orders. You want to give your customers the option to purchase one unit of a product, while also encouraging them to purchase a higher quantity by offering a lower price per unit.
  • For example, a university wants to incentivize coaches and staff to purchase athletic supplies in larger quantities, like baseballs or practice jerseys → Sample Store: Westlake University Training Supplies

• Increase Bulk Purchases. You want to sell products in bulk and provide volume-based discounts.
  • For example, a real estate company wants to support their employees purchasing products in bulk vs. a smaller number of units, like business cards or pens → Sample Store: O’Malley Group Real Estate

• Clearance & Closeout Sales. You have leftover or excess inventory in stock that you want to move out quickly.
  • For example, a spirit wear store has 100 t-shirts leftover that they’re trying to sell before the fall season approaches → Sample Store: Westfield Lake High School Spirit Wear

Volume Pricing, Quantity Discounts, Tiered Pricing. Oh My!

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.

About OrderMyGear

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.

Media Contact: Lauren Seip | lauren.seip@ordermygear.com | 281-756-7915