Today’s dynamic eCommerce marketplace is continuously pressuring Shopify business admins to stand out from the crowd. For this, business owners have to be on a neverending hunt for new marketing strategies every day. The majority of the business admins turn towards adapting new digital marketing strategies, customer communication strategies, etc., and forget about the one interesting strategy, the pricing strategy.
Believe it or not, offering your products or services to your customers using different pricing strategies does play a pivotal role in making your business more successful. One such pricing strategy that is making headlines in the eCommerce world is tier pricing. In today’s blog, we will learn about tier pricing strategy, MageComp’s helpful Shopify app, QUO Volume Discount Tier Pricing, and its amazing features.
What is Tier Pricing?
Tier pricing is a type of pricing strategy that is used by businesses to present their products or services at distinct price points based on predefined pricing tiers. Specific quantities or ranges of product usage or service utilization determine these tiers, enabling businesses to cover a broad range of customers with different needs and budgets.
The core of the tiered pricing model is different from the fixed-rate pricing model. Unlike a uniform pricing scheme, where the same price is applied to the product or services, no matter what their consumption level is, tiered pricing segments the offering into multiple tiers. Each tier typically corresponds to a designated quantity or level of service, often accompanied by incremental benefits such as reduced per-unit costs or enhanced features as customers ascend to higher tiers.
By adopting tiered pricing, businesses can tailor their pricing strategy to better align with the varying requirements and preferences of their customer base. This flexibility empowers customers to select the tier that best matches their usage patterns and financial constraints while incentivizing higher levels of engagement or purchase through the allure of added value or cost savings available at higher tiers.
What is QUO Volume Discount Tier Pricing?
The QUO Volume Discount Tier Pricing is a Shopify app developed by MageComp, which allows its users to create different pricing tiers for quantities of the product. Implementing tiered pricing allows businesses to offer different price points based on predefined tiers or levels of purchase. This strategy can be applied to all products or specific collections within a business’s inventory.
By configuring rules or conditions, such as quantity thresholds, businesses can automatically apply discounts to encourage bulk purchases. These discounts can be structured in various ways, either as fixed amounts or percentages of the regular price. For example, customers buying larger quantities may receive a higher discount per unit, encouraging them to purchase more items at once.
One of the key benefits of tiered pricing is its potential to retain existing customers while attracting new ones. By providing attractive discounts for bulk purchases, businesses can reward loyal customers and entice new buyers to purchase more. This not only increases customer satisfaction but also fosters customer loyalty and promotes repeat business.
Functionalities of QUO
1. Creating Pricing Tiers
You can start creating the pricing tiers from the Dashboard section by selecting the Create Campaign button.
From this field, you can create a pricing tier by giving it a discount name, a tooltip (brief information about what it is), type of price (percentage-based or fixed amount), number of products to which the pricing tier is applicable, how much discount to offer, make it applicable to all products/collections or specific products/collections, set start and end date to the tiered pricing and also choose whether to benefit your customers with this tier pricing once in their lifetime or for a specific number of times.
Let’s understand this feature with an example.
Suppose you are a fabric wholesaler and have to apply tier pricing for your customers and create the tier pricing like this ?
| Discount Title | FESTIVE Season Sale! | |||
| Price Type | Price Discount | |||
| Quantity | 2 | 3 | 4 | 5 |
| Discount (Percentage Type) | 5% | 10% | 15% | 20% |
| Apply to | To All Products | |||
| Start Date | 27 Jan 2024 | |||
| Set End Date | 27 Feb 2024 | |||
| Other settings (Limit the number of times this discount is applied in total) | 3 times | |||
Now, let’s look at some customers’ buying scenarios from 27 Jan 2024 to 27 Feb 2024.
| Customer Name | Purchased Product Quantities | Outcome |
| Jack | Black Men’s Tie (2) | Jack will get a discount of 5%. |
| Julie | Lady Martha Skirts (3) | Julie will get a discount of 10%. |
| Thomas | Torino Men’s Pants (4) | Thomas will get a discount of 15% |
| Henry | Polo Men’s Vest (5) | Henry will get a discount of 20% |
| Paulina | Lady Roma Scarf (1) | Paulina will not get any discount on her purchase. |
The same scenario is with the collections also.
Now, to understand the case when you have chosen to apply the tiered pricing to specific products only and chosen a fixed amount as a discount.
Consider the same example we used above, and you made certain changes. ?
| Price Type | Price Discount | |||
| Quantity | 2 | 3 | 4 | 5 |
| Discount (Fixed amount Type) | $50 | $100 | $150 | $200 |
| Apply to (Specific Products) |
Polo Men’s Vest, Arrow Men’s Shirt, Lady Martha Skirt |
|||
Taking a look at purchasing scenarios. ?
| Customer Name | Purchased Product Quantities | Outcome |
| Tim | Black Men’s Tie (2) | Tim will not get the discount. |
| Robert | Arrow Men’s Shirt (3) | Robert will get a discount of $100. |
| Steven | Torino Men’s Pants (4) | Steven will not get the discount. |
| Linda | Polo Men’s Vest (5) | Linda will get a discount of $200. |
| Sarah | Lady Martha Skirts (1) | Sarah will not get the discount as her purchase is less than 2. |
2. Settings
This field allows you to customize the display of your tier pricing, whether you want to display the tier pricing information in a tabular form or a card form.
A. If you choose Table
1. General:
- Title – Add the title of the table.
- Quantity Name – Enter the name of the quantity column.
- Discount Name – Enter the name of the discount column.
2. Title Style:
- Title Color – Select the color of the title.
- Title Bold – Select how bold you want the text to be.
3. Table Style:
- Table border width – Enter the table width in digits.
- Table border color – Select the color of the table’s border.
- Table head background – Select the color of your table’s head background.
- Table body text color – Select your table’s text color.
- Table body background color – Select the color of the table’s background color.
B. If you choose Card
1. General:
- Title – Enter the title name of the card.
2. Title Style:
- Title Color – Select the color of the title.
- Title Bold – Select the boldness of your card’s title text.
3. Card style:
- Card border width – Select the width of your tier card.
- Card border style – Select the style of your tier card’s border.
- Card text bold – Select how bold you want your card text to be.
- Card text size – Select the font size of your card’s text.
- Card border color – Select the color of your card’s border.
- Card head text color – Select the color of the tier card’s header text.
- Card head background color – Select the color of the card’s head background.
3. Orders
This is the field that tracks all your store’s orders that made their purchase using the tiered pricing.
This field collects the order ID, campaign title (tiered pricing title), customer’s name, customer’s email, how much discount was applied, and their order’s total amount.
Conclusion
The QUO Volume Discount Tier Pricing presents a comprehensive solution for businesses aiming to optimize their pricing strategies and drive sales growth. By offering tiered prices based on predefined quantity thresholds, businesses can incentivize bulk purchases while retaining existing customers and attracting new ones.
The flexibility of QUO’s discount structures, whether fixed amounts or percentages, empowers businesses to tailor their pricing to suit their specific needs and objectives. Through this approach, businesses can not only enhance customer satisfaction but also foster long-term loyalty and maximize revenue potential.
In an increasingly competitive market landscape, QUO Volume Discount Tier Pricing stands as a valuable tool for businesses seeking to thrive and succeed in today’s dynamic business environment.
Hope you found this blog informative. If you are facing any kind of difficulty with this app, kindly drop your difficulty at support@magecomp.com and our Shopify experts will get back to you shortly.
Happy Shopifying!!!
