Whats the deal with Volume Pricing?

Volume discounts can be found everywhere retail or online transactions are occurring. At the gas station; Buy 2 cokes for $3. At the grocery store;  Some times you won’t even realize its volume discounts in prepackaged goods. (6 pack, 12 pack, 18 pack, case of beer or wine by the case) Think Costco and their volume discount strategies! Volume discounts work in a way to reward buyers for buying in larger quantities as the seller is happy to reduce the margin to sell more units.

Volume discounts are a way to increase your AOV (Average order value). You’ve already captured a user at your brick and mortar or e-commerce store and how to you increase the cart value to maximize the return on your advertising investment. It works for both physical and digital products. Increasing AOV is one of the most important factors in driving revenue and profitability to your shop.

There are multiple pricing strategies when creating discounts to try and incentivize the behavior your are trying to drive. The discount percentages and the break points can factor into how people take advantage of your discounts. Take a look at your previous sales on a product that you sell. Are you seeing multiple units purchased in a single order? Do you think that someone might consider buying one for a friend or family, for their office or second home, or for a holiday gift coming up in the future? What is the additional return to you buy offering that second or third unit for 10-20% off. More often than not on items that are single purchases that have high margins offering this discount can be a major driver in increasing your AOV. The cost to experiment is low and can really boost your volume.  Try out the Volume & Discount Pricing app today!