Tired pricing is arguably one of the most efficient promotion strategies on the whole platform. It’s easy to set up and manage as well as an amazing sales boosters.
MAXIMIZE YOUR PROFIT: With Magento 2 Tier Price at the store view level!
Moreover, there are hidden benefits of it that we’ll get into in a second!
For those exact reasons, let’s take a look at its definition, what makes tier pricing great, where the drawbacks stay, and what you can do to get better at it.
What is Magento 2 Tier Price?
Tier price in Magento 2 refers to the ability to set a discount based on the volume of items purchased. After hitting each benchmark (tier), customers will enjoy a new and better price.
Something like this:
This rule will run on a specific store view, customer group, or shared catalog. The logic behind the discount will work in the flavor of your store’s revenue.
Take the above picture as an example: If customers add 4 or 5 products in their cart, the 10% off discount (of the Buy 3 tier) will be applied here.
Why is it efficient?
I’m going to explain this question, not in one reason but a whole bouquet of them.
This pricing strategy within Magento is essentially an up-sales tactic. You’ll encourage customers to purchase a bigger amount of products to enjoy the discount.
Let’s do a math equation using the above example.
The original price is $40 and customers only need 2 pieces, hence your total cart value is: 40*2 = $80.
Now with the discount, customers find if they add one more to cart, they will unlock the 10% off and pay $36/piece instead of $40, now you have the total cart value of: 36*3 = $108.
Congratulations! You’ve won more $28 as in total revenue!
As you can see, this pricing is easy for both parties to understand and implement. In addition, this rule works extremely well with products that you have an excess with stock.
Now it’s not only a sales tactic but also an inventory control strategy!
Feel excited yet? Let’s learn how you set this up!
Configuring Magento 2 Tier Price default
In the backend panel, go to Catalog -> Products -> Click on the product you want to set tier price -> Advanced Pricing (under the Price field) -> Click Add (Under Customer Group Price). Then follow through:
- If your store has multiple websites, choose the Website for which the tiered pricing applies.
- If necessary, limit the availability of the pricing tier by selecting the Customer Group or Shared Catalog ().
- Enter the quantity that must be ordered to receive the discount.
You can fill in the Price section with 2 methods:
Method 1: Fill Price as Fixed Amount
You choose Fixed in the drop-down menu then enter your preset price for that tier.
Method 2: Fill Price as Percentage
Pick Discount in the drop-down menu and place the number as the percentage off for that specific tier.
It’s worth mentioning that this discounted price will get calculated by the default price, not the special price.
The lackluster of Magento 2 Tier Price default
It’s not actually tiered pricing
Despite the name, it has nothing to do with the actual concept of this pricing tactic. The more appropriate and universal name should be Magento 2 volume pricing because it’s actually how it works.
I’m gonna bother you more with more math here:
|Volume Pricing (Magento 2 tier price)||Tiered Pricing|
|Rule||Based price: $10 per piece
Buy a minimum of 20 for $8 each
Buy a minimum of 30 for $7 each
Buy a minimum of 40 for $6 each
|01-20 = $10 per piece
21-30 = $8 per piece
31-40 = $7 per piece
41+ = $6 per piece
|Action||A customer buys 60 pieces|
|Calculation||60> 40 -> it’s $6 for each piece||
First 20 pieces cost $10 each
Next 10 pieces cost $8 each
Next 10 pieces cost $7 each
Last 20 pieces cost $6 each
|Total revenue||6*60 = $360||10*20 + 8*10 + 7*10 + 6*20 = $470|
As you can see, tired pricing is about the price in stages while volume pricing is about placing all units at a price when the quantity criteria are met.
This hurts because you and others with experiences in other parts of commerce beside Magento will get confused at first by the name. Therefore, misinterpret this function of Magento pricing.
However, it’s a good thing for the other half of Magento owners. Volume pricing is clearly a more simple logic and you don’t have the risk of miscalculating the discount and your revenues.
Can’t set different tier prices for different store views
There is no store view you can pick and imply your tier price. The tier price in Magento 2 can only differ at the website scope.
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And that’s not enough. The goal of any ecommerce is to maximize revenues and minimize selling costs. Not being able to set prices at the store view level leads to several misses in saving shipping and storage expenses.
Moreover, you can’t take customer behavior (country-wise) into account and that’s also a huge drawback.
Basic UX presentation
The simple notification is not that attractive and anywhere near the great UX standard.
Just imagine you place more than 5 tier prices and how that block of information can be an eyesore. There should be a better design or better, a more advanced and engaging way to show your tier price in Magento 2.
Magento 2 Tier Price best practices – how to optimize the default setting
Keep it simple
There is no need to make the rule complicated. One, it makes customers confused about the value of the product, and two, you make it harder for yourself.
Therefore, your goal with the tier price in Magneto 2 should be keeping it straightforward and easy to understand.
Localize your rules
It’s a fact that you will gain much better turnover with localization. Therefore, you should find a way to set tier prices in Magento 2.
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Generally speaking, you can do this by coding or buying an extension.
The second option is more suitable if you have limited knowledge regarding coding language and logic. Moreover, you can count on an extension with its policy to guarantee your success at this optimization.
Looking forward, we will have an article on this soon!
Mass update Magento 2 tier price with importing
Clicking on every single product and updating their price manually is truly tedious. So, let’s learn an easier way to do so:
- Prepare a CSV file with these as columns: sku, tier_price_website, tier_price_customer_group, tier_price_qty, tier_price, tier_price_value_type.
2. In the Backend, go to System > Data Transfer > Import.Under Import Settings, set Entity Type to Advanced Pricing.
3. Set Import Behavior to Add/Update.
4. Under File to Import, click Choose File and select the file that you prepared to import from your directory.
5. In the upper-right corner, click Check Data.
6. If the file is valid, click Import.
We’ve discussed Tier Price in Magento 2 through and through. In addition, there were also best practices being laid down to ensure you use the price rule correctly and efficiently.
Let me know what you like about this pricing tactic as well as what you like to see more of in the future! I will definitely take your feedback into consideration and provide you with that exact information.