If you’re reading this, you’re likely on the lookout for smart strategies to boost your subscription-based business.
We got the game-changer for you: WooCommerce Tiered Pricing.
What is Tiered Pricing?
Tiered pricing is a strategy where customers are offered discounts based on the quantity of products they purchase.
The more units they buy, the greater the discounts they receive.
This method encourages bulk purchases by offering progressively lower rates as the purchase quantity increases.
For example, consider a tiered pricing structure in a WooCommerce store:
- 1-20 units: $15 each
- 21-50 units: $10 each
- 51-75 units: $8 each
- 76+ units: $6.5 each
Under this structure, a purchase of 60 units would cost a total of $680, offering significant savings as the customer buys more.
Why Do You Need Tiered Pricing?
Tiered pricing isn’t just a pricing model; it’s a customer magnet. It’s about giving your customers the power to choose a plan that fits their pocket and needs.
This approach not only attracts more sign-ups but also encourages existing customers to upgrade.
The beauty of this model? It simplifies decision-making. Customers can easily weigh a $10/month subscription against a $100/month one, making your offers more transparent and attractive.
How to Set Up an Effective Tiered Pricing Structure
Ready to give your WooCommerce store a competitive edge? Implementing a tiered pricing structure can transform the way you attract and retain customers.
Deciding Your Tiers
First things first, decide on the tiers. Typically, businesses opt for a three-tier system – basic, premium, and elite – but feel free to tailor this according to your product range and customer base.
Consider these factors:
- Customer Segmentation: Understand your customer demographics. What are their spending habits? What features or services are they most likely to value?
- Competitive Analysis: Look at your competitors. How are they structuring their pricing? Use this information to position your tiers competitively.
- Value Proposition: Each tier should offer progressively greater value. The basic tier might offer the essentials, while the premium and elite tiers could include additional benefits.
Advantages of Tiered Pricing in WooCommerce
Implementing tiered pricing in your WooCommerce store offers several benefits:
- Encouraging bulk purchases: By offering percentage discounts on larger quantities of products, you can encourage customers to buy more products in one go.
- Offering better deals for loyal customers. Tiered pricing also lets you offer better discounts to repeat customers.
- Managing inventory effectively. Can help by encouraging the sale of specific items that are overstocked or slow-moving.
- Attracting new customers with competitive pricing. By offering competitive pricing on bulk purchases, you can attract new customers who are looking for discounts.
- Enhancing customer satisfaction. By providing pricing deals that align with the customer’s purchasing power.
How to Set Up WooCommerce Tiered Pricing
Select Your Ideal Plugin
Choose one that aligns perfectly with your store’s needs, ensuring it’s rich in features yet user-friendly.
Some of our favorites:
- Tiered Pricing Table for WooCommerce
- Ideal for displaying pricing differences based on quantity.
- Configurable for different user roles.
- WooCommerce Fees and Discounts
- Allows applying discounts based on quantity, user role, or payment gateway.
- Offers both basic and pro versions.
- WooCommerce Tiered Pricing – Price By Quantity Plugin
- Supports quantity-based discounts and displays a table of discounts.
- Suitable for both simple and variable products.
Installation Process
Let’s take, for example Tiered Pricing Table for WooCommerce.
- Navigate to Plugins > Add New.
- Click the Upload Plugin button at the top of the screen.
- Upload the ‘tier-pricing-table.zip’ file you’ve downloaded from Woo
- Click the Install Now button. – and that’s it.
- More info on Using Plugins.
This plugin offers two types of tiered pricing:
Fixed Pricing
It allows you to define different product prices for specific amounts.
Let’s say you sell your product for $100.00, but if users buy 10 pieces, you want to sell it at $90.00.
Percentage Pricing
It lets you define a discount for specific amounts calculated from the regular product price.
Let’s say you sell your product for $100.00, but if users buy 10 pieces, you want to offer a 10% discount, and if users buy 50 pieces, you offer a 20% discount.
How to Set Tiered Pricing
Simple products
Tiered Pricing for the simple products is set up under the “general” tab on the product edit page:
Variable products
The plugin adds the tab “Tiered Pricing”. Here, you can add the pricing rules that will be applied to every variation in this variable product:
Global Pricing Rules
Global pricing rules are designed to create general pricing rules and apply them to different products.
You can have one rule that applies to all the products in your store, specific categories, or a specific bunch of products.
To create your first global rule, enter WooCommerce -> Pricing rules page and click “Create a pricing rule”
On this page, you get two sections: Rules and Pricing.
The Rules Section
Here you can set products and customers that the rule will work for.
For example, let’s create a pricing rule that applies to wholesalers and provides a discount for all products in the category “Hoodies”:
You can combine as many categories as you need. You can create a rule for a product category + a couple of separate products.
If you do not add any restrictions here, the rule will apply to all products in your store.
The Pricing Section
Here, you set the actual pricing. In the example below, we set the percentage-based tiered pricing rules for hoodies, in the example above.
Applying a Pricing Type: The field is responsible for the type of calculation of the quantities.
There are two options for you:
- Cross the products: this means that tiered pricing will be calculated based on any of the products that apply this rule in the cart.
- Per Individual product: this means that tiered pricing will be calculated separately.
How to Set a Minimum Order Quantity
Minimum order quantity defines the minimum product pieces users can buy.
When you set a minimum, the plugin will restrict users from purchasing under the amount and show a notice if they try to buy a smaller amount:
For a more in-depth explanation of how this awesome plugin works and how you can set it up to best benefit your WooCommerce store, make sure to check the WooCommerce Tiered Pricing Table.
Wrapping It Up
Tiered pricing isn’t just a strategy; it’s a journey toward understanding your customers better and providing them with value at every turn.
If you need more info on how to create a subscription for your store, make sure to read our latest blog post on Building a Subscription Model with WooCommerce.
By implementing a tiered pricing structure in your WooCommerce store, you’re not just setting up a pricing model; you’re building a flexible business model that responds to the evolving needs of your market.
CoSpark is there for you at every step of the way towards a successful eCommerce business. Reach out and get the CoSpark advantage ASAP!
