A quantity discount is a price reduction that, unlike other time-based or seasonal promotions, is defined with the goal of rewarding customers who purchase large quantities of products.
Quantity discounts can be offered to all customers or to specific segments, and are usually organized to reflect the actual convenience of high-volume sales. For example, quantity discounts might be available only to customers who have previously reached significant revenue levels, only to resellers and not end customers, etc.
Essentially we are talking about discounts that are advantageous not only because they generate higher revenue, but also because they increase profit when higher volumes are accompanied by cost optimization.
Fixed direct and indirect costs are therefore spread over more units sold, warehouse movements increase with less risk of inventory obsolescence, and transport and sales management costs are lower.
Discounts by quantity tiers
Widely used in B2B, quantity-tier discounts can be created to further incentivize higher sales volumes by highlighting the advantages of ordering larger quantities and encouraging customers to buy earlier, still planned and aligned with their production and commercial needs.
The consequence is higher stock held by the customer and less risk that they will turn to competitors during the year.
Quantity-tier discounts and customer groups with Open2b
Open2b is an e-commerce platform that provides features for defining different types of promotions and discounts.
It allows you to set minimum quantities and amounts for order acceptance, discount coupons, list and sale price discounts, free shipping, and many other possible combinations to support marketing.
In addition to all these options, the Advanced B2B version of Open2b includes a price management system that allows you to differentiate prices by quantity with price tiers.
A discount system at reference and variant level
Open2b allows you to set tiers at a very deep level with quantity discounts and prices down to the individual reference.
A product could, for example, be available in multiple combinations, sizes, etc. Let’s take the classic example of sizes and colors.
Each size and color combination in Open2b always has its own stock and price, and Open2b’s quantity discount system goes down to this level, allowing not only price differentiation by quantity per individual reference, but even different tiers!
So we could have, for example, a Shirt product available in combinations Size L / color White, Size L / color Blue, Size XL / color White, Size XL / color Blue, and for each combination, specific quantity and price tiers.
Shirt product
Displayed on the e-commerce site with the ability for the customer to select individual references and combinations from a single product page.
Size L / color White
Orderable quantity from 1 to 5: €10
Orderable quantity from 6 to 10: €9
Orderable quantity from 11 to 15: €8
Orderable quantity from 15 and up: €7
Size L / color Blue
Orderable quantity from 1 to 3: €11
Orderable quantity from 4 to 6: €9
Orderable quantity from 7 to 9: €7
Orderable quantity from 10 and up: €6
Size XL / color White
Orderable quantity from 1 to 5: €10
Orderable quantity from 6 to 10: €9
Orderable quantity from 11 to 15: €8
Orderable quantity from 15 and up: €7
Size XL / color Blue
Orderable quantity from 1 to 3: €11
Orderable quantity from 4 to 6: €9
Orderable quantity from 7 to 9: €7
Orderable quantity from 10 and up: €6
A discount system at price list and customer group level
But Open2b not only allows you to set tiers at the individual reference level. Open2b Advanced B2B also allows you to set quantity discounts for each price list. The catalog can be organized with different prices by list and different price and quantity tiers, then associated with defined customer groups.
The ability to associate different price lists and price/quantity tiers with different customer groups, down to single-customer granularity, allows reserved prices to be shown only to authorized customers who receive restricted access.
For example, you can assign resellers a price list with quantity-based prices and VAT excluded, while private customers get a traditional list with VAT-included prices that do not vary by quantity.
Size XL / color White
Price list 1: Orderable quantity from 1 to 3: €11
Price list 1: Orderable quantity from 4 to 6: €9
Price list 1: Orderable quantity from 7 to 9: €7
Price list 1: Orderable quantity from 10 and up: €6
Price list 2: Orderable quantity from 1 to 3: €8
Price list 2: Orderable quantity from 4 to 6: €7
Price list 2: Orderable quantity from 7 to 9: €5
Price list 2: Orderable quantity from 10 and up: €5
Price list 3: Orderable quantity from 1 to 3: €13
Price list 3: Orderable quantity from 4 to 6: €12
Price list 3: Orderable quantity from 7 to 9: €11
Price list 3: Orderable quantity from 10 and up: €10
Price list 4 (e.g., end customer): Orderable quantity from 1 and up: €18
Customer Group A. Use sale prices from price list 1
Customer Group B. Use sale prices from price list 3
and so on...!
All that remains is to try the Open2b e-commerce platform in its Advanced B2B version and choose the pricing and discount strategy best suited to your customers thanks to a unique level of flexibility!
