# Managing Wholesale Pricing Tiers

Wholesale pricing tiers encourage larger orders and build buyer loyalty.

## Understanding Pricing Tiers

Pricing tiers offer different prices based on order quantity:
- Higher quantity = Lower per-unit price
- Encourages larger orders
- Rewards bulk buyers
- Improves production efficiency

## Creating Tiered Pricing

### Tier Structure Example:

| Tier | Quantity Range | Price per Unit | Discount |
|------|----------------|----------------|----------|
| Tier 1 | 1-99 | $25.00 | 0% |
| Tier 2 | 100-499 | $22.50 | 10% |
| Tier 3 | 500-999 | $20.00 | 20% |
| Tier 4 | 1,000+ | $18.75 | 25% |

### Factors in Tier Pricing:
- Production cost at different volumes
- Setup/amortization costs
- Material bulk discounts
- Shipping efficiency
- Desired profit margins
- Market competition

## Plan Limits on Tiers

| Plan | Maximum Pricing Tiers |
|------|----------------------|
| Bronze | 3 tiers |
| Silver | 10 tiers |
| Gold | Unlimited tiers |

## Setting Up Tiers

1. Go to **Product** > **Pricing**
2. Select **"Wholesale Pricing"**
3. Click **"Add Tier"**
4. Set minimum quantity
5. Set price per unit
6. Add more tiers as needed
7. Save

## Tier Pricing Strategies

### Volume Discount:
Standard approach - price decreases as quantity increases.

### Step Pricing:
Significant drops at key quantities to encourage larger orders.

### Targeted Tiers:
Set tiers based on typical buyer order sizes in your industry.

### Promotional Tiers:
Temporary lower tiers for seasonal promotions.

## Communicating Tiers

Make tiers clear to buyers:
- Display on product pages
- Include in RFQ responses
- Show savings vs. single-unit price
- Create tier comparison charts

## Negotiating Beyond Tiers

For very large orders:
- Consider custom pricing
- Factor in long-term relationship value
- Account for production efficiency gains
- Include shipping considerations
- Document special pricing agreements

## Monitoring Tier Performance

Track:
- Which tiers are most popular
- Average order size
- Revenue by tier
- Profit margins by tier
- Buyer movement between tiers

## Adjusting Tiers

Review and adjust periodically:
- Quarterly business review
- When costs change significantly
- Based on competitive analysis
- After capacity changes
- When introducing new products