Bulk Pricing Calculator
Create tiered pricing based on volume discounts. Perfect for wholesale and quantity-based offers.
Your cost for one unit
Starting margin before volume discounts
Volume Tiers
% discount
% discount
% discount
% discount
Pricing Table
| Quantity | Discount | Price per Unit | Effective Margin |
|---|---|---|---|
| Enter values to see pricing tiers | |||
Understanding Bulk Pricing Strategy
Volume discounts are a powerful tool for increasing sales, moving inventory, and building customer loyalty. However, they must be carefully calculated to maintain profitability.
Benefits of Tiered Pricing
- Increased Order Size: Customers buy more to reach the next discount tier
- Customer Retention: Regular buyers feel rewarded for their loyalty
- Competitive Advantage: Attractive pricing for bulk buyers
- Inventory Management: Move stock faster with volume incentives
- Predictable Revenue: Larger orders mean more stable cash flow
Setting Effective Discount Tiers
- Know Your Margins: Never discount below your break-even point
- Make Tiers Meaningful: Ensure discounts are large enough to motivate purchases
- Consider Competition: Research what similar businesses offer
- Account for Costs: Factor in economies of scale (lower per-unit costs at volume)
- Test and Adjust: Monitor what tiers customers actually hit
Common Discount Structures
Retail/E-commerce:
- 1-5 units: Full price
- 6-20 units: 5-10% off
- 21-50 units: 15-20% off
- 51+ units: 25-30% off
B2B/Wholesale:
- Sample orders (1-10): 10% off retail
- Small wholesale (11-50): 30-40% off retail
- Medium wholesale (51-250): 45-50% off retail
- Large wholesale (250+): 50-60% off retail
Avoiding Common Mistakes
- Don't create too many tiers (3-5 is optimal)
- Don't make the first tier too easy to reach
- Don't offer discounts that erode your margin below sustainable levels
- Don't ignore shipping costs when calculating bulk pricing
- Don't forget to communicate the value of your tiers clearly