Volume Discount Campaign

Volume discounts (tiered pricing) reward customers for buying more, increasing average order value while moving more inventory. This guide covers setting up tiered volume discounts. Tiered discounts require Smart Cycle Discounts Pro.

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What are Volume Discounts? #

Concept #

Discounts that increase as quantity purchased increases:

• Buy 1-4: Full price
• Buy 5-9: 10% off
• Buy 10-24: 15% off
• Buy 25+: 20% off

Benefits #

• Increases average order value
• Moves more inventory per order
• Attracts bulk buyers (businesses, resellers)
• Creates perceived value for larger purchases

Best Products for Volume Discounts #

• Consumables (bought repeatedly)
• Office supplies
• Wholesale items
• Low-margin items with high volume potential
• Seasonal items needing clearance

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Example: Office Supplies Tiered Pricing #

Scenario #

Products: Office supplies category
Goal: Encourage bulk purchasing for business customers
Structure:
- 5-9 items: 10% off
- 10-24 items: 15% off
- 25-49 items: 20% off
- 50+ items: 25% off

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Step-by-Step Setup #

Step 1: Basic Information #

1. Go to SC Discounts → Add New Campaign
2. Configure:
   • Campaign Name: “Office Supplies – Bulk Pricing”
   • Priority: 3 (Medium)
3. Click Next

Step 2: Product Selection #

1. Choose “Products by Condition”
2. Add condition:
   • Category equals “Office Supplies”
3. Click Next

Step 3: Discount Configuration #

1. Select “Tiered / Volume Pricing”
2. Configure tiers:
   • Tier 1: Quantity 5-9, Discount 10%
   • Tier 2: Quantity 10-24, Discount 15%
   • Tier 3: Quantity 25-49, Discount 20%
   • Tier 4: Quantity 50+, Discount 25%
3. Click Next

Step 4: Schedule #

1. Start Date: Today or your preferred start
2. End Date: Leave empty for indefinite (volume discounts often run permanently)
3. Click Next

Step 5: Review and Publish #

1. Review tier structure
2. Verify discount calculations
3. Click “Publish”

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Tier Configuration Options #

Quantity-Based Tiers #

Discount based on number of items:

Tier 1: 5-9 units → 10% off per unit
Tier 2: 10-24 units → 15% off per unit
Tier 3: 25+ units → 20% off per unit

Example purchase: 12 units @ $10 each
Without discount: $120
With tier 2 (15%): $102
Savings: $18

All Units vs. Tiered Units #

Method	Description	Example (15 units @ $10)
All Units	Discount applies to all items	15 × $8.50 = $127.50
Tiered Units	Different prices per tier	4×$10 + 5×$9 + 6×$8.50 = $136

Smart Cycle Discounts uses the All Units method – the highest tier reached applies to all items.

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Configuration Summary #

Setting	Value	Why
Discount Type	Tiered / Volume	Enables quantity-based pricing
Priority	3 (Medium)	Standard promotional priority
Schedule	Indefinite	Volume discounts typically ongoing
Products	Category-based	New products auto-included

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Tier Design Best Practices #

Number of Tiers #

• Minimum: 2 tiers (creates basic incentive)
• Optimal: 3-4 tiers (covers different buyer segments)
• Maximum: 5-6 tiers (beyond this gets confusing)

Discount Increments #

Make each tier meaningfully better:

• Too small: 10% → 11% → 12% (not compelling)
• Just right: 10% → 15% → 20% (noticeable difference)
• Too large: 10% → 25% → 40% (may hurt margins)

Quantity Thresholds #

Base thresholds on typical order patterns:

1. Check your average order quantity for these products
2. Set first tier just above average to encourage upselling
3. Set higher tiers for business/bulk buyers

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Common Tier Structures #

Conservative (Margin-Protective) #

3-5 items: 5% off
6-11 items: 10% off
12+ items: 15% off

Standard (Balanced) #

5-9 items: 10% off
10-24 items: 15% off
25+ items: 20% off

Aggressive (Volume-Focused) #

3-5 items: 10% off
6-11 items: 20% off
12-23 items: 30% off
24+ items: 40% off

B2B Wholesale #

10-24 items: 15% off
25-49 items: 25% off
50-99 items: 35% off
100+ items: 45% off

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Displaying Volume Discounts #

Product Page Display #

Customers see the tier structure on product pages:

Volume Pricing Available:
┌───────────────┬───────────┬───────────┐
│ Quantity      │ Price     │ You Save  │
├───────────────┼───────────┼───────────┤
│ 1-4           │ $10.00    │ -         │
│ 5-9           │ $9.00     │ 10%       │
│ 10-24         │ $8.50     │ 15%       │
│ 25+           │ $8.00     │ 20%       │
└───────────────┴───────────┴───────────┘

Cart Display #

The cart shows which tier applies and savings achieved:

Product: Notebook (×15)
Price: $8.50 each (15% volume discount)
Total: $127.50 (You save $22.50!)

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Combining Volume Discounts #

With Other Campaigns #

Volume discount priority determines interaction:

• Higher priority: Volume discount wins, no stacking
• Lower priority: Other campaign wins if applicable
• Same priority: Highest discount wins

With Coupons #

If coupons are allowed (General Settings), customers may stack:

• Volume discount applied first
• Coupon applied to discounted total
• Consider if this impacts margins excessively

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Measuring Volume Discount Success #

Key Metrics #

Metric	What to Track
Average Quantity	Items per order for these products
Tier Distribution	% of orders in each tier
AOV Impact	Average order value change
Revenue per SKU	Has volume increased?
Margin Impact	Are discounts sustainable?

Success Indicators #

• Average quantity per order increases
• More orders reach higher tiers over time
• Total revenue increases despite lower margins
• Customer feedback is positive

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Troubleshooting #

No One Reaching Higher Tiers #

• Lower the tier thresholds
• Increase discount at higher tiers
• Better communicate volume savings
• Consider “You’re X items away from more savings!” messaging

Everyone Getting Maximum Discount #

• Top tier threshold may be too low
• Consider adding higher tiers
• Review if margin is sustainable

Confusion About Pricing #

• Simplify tier structure
• Use clear product page displays
• Add FAQ section about volume pricing