If you run a wholesale business, you’ll have to work on introducing attractive pricing strategies to increase your sales. The chances of a competitor selling a similar product are pretty high. Though quality plays a vital role in making your product or service worth buying, pricing is a crucial element that can’t be ignored. Tiered pricing for businesses will help you facilitate your clients according to the volume of goods they buy.
Tiered pricing is a pricing method that has been used for centuries now. However, it is still helping many organisations grow their sales. If you are wondering how we’ll tell you what tiered pricing is and how you can use this strategy to grow your business.
What is a Tiered Pricing Model?
Tiered pricing is a type of pricing structure that charges different prices for different levels of service packages. For example, a business might charge one price for basic service, a higher price for premium service, and an even higher price for VIP service. On the other hand, if the business deals with physical products, the price will change according to the number of goods a buyer will buy.
Here is a simple example of tiered pricing so you can better understand what it’s all about:
- Units 1-9: $30 per unit
- Units 10-19: $27 per unit
- Units 20-49: $23 per unit
- Units 50-99: $18 per unit
- Units 100+: $15 per unit
As you can see, a more significant discount is applied as the volume increases. This is how you set pricing tiers for your customers, considering the average cost. This attracts your customers to buy more from you. Because the more they buy, the lower the price they’ll get. By using this pricing method, you’ll be able to attract both B2C and B2B customers. That way, you can operate as a retailer and a wholesaler at the same time.
Benefits of Using Tiered Pricing for Business
1. Attract More Customers
Customers with different goals and budgets will be able to buy from stores with different price points.
Taylor’s T-Shirts has different price tiers for t-shirts of different quality, so a young person can buy a thin shirt, a worker on his lunch break can buy an average shirt, and an older woman can buy a high-quality shirt for a night out.
2. Generate More Revenue with More sales
Customers will always feel more motivated to buy when they notice that they’ll have to pay less if they buy more units. A well-crafted, tiered pricing system ensures a plan is available to suit everyone’s demands and budget. Customers who can’t find what they need on your website won’t go to your rivals’ websites. Instead, they’ll go for whichever tier best suits them and switch levels as their requirements change. Regardless of whether they move up or down a tier, their money will continue to be with you.
3. Boost Your Sales by encouraging you to Pay for Greater Tiers
Customers are more likely to upgrade to an improved version from the next tier if they purchase the basic product for a lower price.
Let’s say DC Plugs gains a new client for their entry-level software package. The demands of the consumer change after six months, and they ask about new features. The DC Plugs salesperson can move the customer up to the second-tier membership, giving them the needed features.
4. Run Your Business as a Retailer and Wholesaler
Tiered pricing for businesses allows you to sell in single units and in bulk. That way, you can also attract businesses to buy from you and end users.
By running a business that targets two different types of audiences, you can grow your business and reach out to people across the globe.
How to Introduce Tiered Pricing for Business on Your Online Store?
In previous years, over 27.6% of the global population will prefer online shopping. That means more than one out of every four people are online shoppers. You must set up your online store to ensure your business develops an online presence. In fact, if you are low on budget or are a small business, then setting up an eCommerce store is a much cheaper option than opening a brick-and-mortar store.
WordPress is one of the fastest and easiest platforms to build your website. A WordPress website is perfect for newbies with little to no development knowledge. Also, you can customise your website by installing the best plugins without any help from professional developers.
Once you have a good and attractive WordPress website for your business, you can introduce tiered pricing plans for your customers. All you need is Tiered Pricing for WooCommerce. This amazing plugin lets you create dynamic pricing tables for products, categories, users, and role-based levels. You can easily offer different pricing options to your customers to help them meet their own needs.
Here are a few more features that you’ll be able to benefit from after installing this plugin on your eCommerce store:
- Display or hide the add-to-cart button for guest users.
- Enable filter for any tier’s pricing range.
- Customize display type settings.
- Import and export product, category, user, and role-based discounts.
- And much more.
The tiered pricing model can be used for businesses that sell both goods and services. Offering flexible pricing plans will always make all customers feel relaxed while buying something. Also, it will give them the impression that the business cares about their demands. However, going online while using this pricing model is the ideal tactic.