How to Setup WooCommerce Tiered Pricing (Easy Steps)

I am pretty sure even you, as a customer, demand discounts when you buy large quantities of a product or products.

Whether you are buying some fancy shoes in Albert Cuyp Market in Amsterdam or roaming through the Marché aux Puces de Saint Ouen in Paris in search of some antiques, you would definitely bargain with the vendors for discounts, especially when you buy multiple items or large quantities.

Well, you are not alone. Even online, 97% of shoppers look for discounts before buying something.

As a WooCommerce store owner, you can significantly grow your business by having effective pricing and discount strategies. One effective and powerful discount strategy is WooCommerce tiered pricing.

What is that, and how can you offer tiered pricing for WooCommerce?

Let’s find out

What is WooCommerce Tiered Pricing?

Tiered pricing is a pricing strategy that allows you to offer different prices for a product based on the quantity purchased. Essentially, it’s a way to incentivize customers to buy more by offering them discounts as they increase their order quantity.

In WooCommerce, you can achieve tiered pricing either through a discount plugin or custom code. A tiered pricing and tiered pricing discount may sound different, but they serve the same purpose in WooCommerce when set right.

Overall, with WooCommerce tiered pricing, you can implement tiered pricing to encourage bulk purchases, improve profit margins, and enhance customer satisfaction.  

Here’s a simple example:

• Regular price: $20 per shirt
• Tier 1: Buy 2-4 shirts, get 10% off (price per shirt: $18)
• Tier 2: Buy 5 or more shirts, get 15% off (price per shirt: $17)

By offering this, you encourage customers to purchase more shirts to avail of the lower price per unit. This can lead to increased sales and revenue for your store.  

The most common example of tiered pricing we see is SAAS Company pricing or web hosting company pricing. Most of the web hosting companies offer discounted rates when you buy more months or years of hosting plans.

Difference between WooCommerce Tiered Pricing, Bulk Discount, and Quantity-Based Discounts

If you are familiar with WooCommerce quantity-based discounts and bulk discounts, you might be wondering if tiered pricing WooCommerce sounds like the same thing. Especially WooCommerce bulk discounts resemble tiered pricing a lot.

However, they have distinct differences. Here’s a breakdown of the differences between bulk discounts, tiered discounts, and quantity-based discounts:

1. Bulk Discount

• Definition: A single discount applied when a customer buys a large quantity of a product.
• How it works: Once the customer reaches a specified quantity, they receive a fixed discount.
• Example: “Buy 10 or more and get 20% off.”

2. WooCommerce Tiered Discount

• Definition: Discounts that increase as the quantity purchased increases, with different discount rates for different quantity ranges.
• How it works: Prices change at specified quantity thresholds, offering lower prices for higher quantities.
• Example:
  • Buy 1-9 items: $10 each
  • Buy 10-19 items: $9 each
  • Buy 20+ items: $8 each

3. Quantity-Based Discount

• Definition: Any discount that is based on the quantity of items purchased. This is a broader term that can include both bulk and tiered discounts.
• How it works: The discount can be a single fixed discount (like bulk) or vary by ranges (like tiered).
• Example:
  • Buy 5 or more items and get 10% off (bulk discount example)
  • Buy 1-9 items: $10 each, Buy 10-19 items: $9 each, Buy 20+ items: $8 each (tiered discount example)

Key Differences:

• Bulk Discount is a single discount applied once a quantity threshold is met.
• Tiered Discount offers multiple discount levels based on different quantity ranges.
• Quantity-Based Discount is a general term that encompasses any discount given based on the quantity purchased, which can include both bulk and tiered discounts.

How to Setup WooCommerce Tiered Pricing

We have already mentioned there are two ways to set tier pricing WooCommerce –

• Using Codes
• Using a Discount Plugin

Unfortunately, the core WooCommerce doesn’t have built-in features to offer or set up WooCommerce tiered pricing. Let’s check out how to set up this strategy using custom codes.

Tiered Pricing Set Up In WooCommerce Using Custom Codes

Let’s say you have a Woo clothing store and you want to offer the below tier pricing WooCommerce for the category T-shirts –

• Buy 1-2 T-shirts: $20 each
• Buy 3-5 T-shirts: $18 each
• Buy 6-10 T-shirts: $15 each
• Buy 11+ T-shirts: $12 each

We must mention that we are demonstrating a very basic example of tiered pricing in this article. You can add different codes to apply advanced pricing and discounts as per your requirements.

To achieve the above mentioned strategy, you can follow the below steps.

 Step-by-Step Guide:

1. Access Your Theme’s Functions File:
   • Go to Appearance >> Theme Editor in your WordPress dashboard.

• Open the functions.php file of your active theme, scroll to the bottom, and create some empty space to paste your code.

2. Add the Custom Code:

// Apply tiered pricing for T-shirts

add_action( 'woocommerce_before_calculate_totals', 'apply_tiered_pricing', 10, 1 );

function apply_tiered_pricing( $cart ) {

if ( is_admin() && ! defined( 'DOING_AJAX' ) ) {

     return;

}

// Define your tiered pricing structure

$tiered_pricing = array(

     1 => 20,

     3 => 18,

     6 => 15,

     11 => 12,

);

// Define the category slug for T-shirts

$tshirt_category_slug = 't-shirt';

foreach ( $cart->get_cart() as $cart_item ) {

     $product = $cart_item['data'];

     $quantity = $cart_item['quantity'];

     // Check if the product is in the T-shirt category

     if ( has_term( $tshirt_category_slug, 'product_cat', $product->get_id() ) ) {

         // Apply tiered pricing based on quantity

         foreach ( $tiered_pricing as $min_qty => $tiered_price ) {

             if ( $quantity >= $min_qty ) {

                 $product->set_price( $tiered_price );

             }

         }

     }

}

}

Explanation of the Code:

• Action Hook: woocommerce_before_calculate_totals is used to modify the cart totals before they are calculated.
• Function: apply_tiered_pricing is the function that applies the tiered pricing logic.
• Admin Check: Ensures that tiered pricing is not applied in the admin area unless performing AJAX operations.
• Tiered Pricing Structure: An array defining the quantity thresholds and corresponding prices.
• Category Slug: The slug for the T-shirts category is defined as $tshirt_category_slug.
• Cart Loop: Loops through the cart items to check if they belong to the T-shirt category and applies the tiered pricing based on the quantity.

Note:

• Backup: Always back up your functions.php file and the entire site before making changes.

Testing the Code

You should thoroughly test the code on a staging site before applying it to your live site. In the front end, let’s add some products from the T-shirts category.

For 1-2 products, the price will be $20.

Let’s add more. For 3-5 T-shirts, the price should be $18 each.

For 6-10 T-shirts, the price is $15 each as per our strategy.

Lastly, for 11 or more products, the price of the T-shirts is $12 each.

As you can see, our code for WooCommerce add tiered pricing is working perfectly.

Displaying a WooCommerce Tiered Pricing Table in Product Pages

You do want your customers to know what they can avail when they order more. For that, we want to display the WooCommerce tiered pricing discounts in a table on individual product pages of the T-shirt category.

Again, jump to funcitons.php and paste the following code –

// Add tiered pricing table to single product pages

add_action( 'woocommerce_single_product_summary', 'display_tiered_pricing_table', 20 );

function display_tiered_pricing_table() {

global $product;

// Define the category slug for T-shirts

$tshirt_category_slug = 't-shirts';

// Check if the product is in the T-shirt category

if ( has_term( $tshirt_category_slug, 'product_cat', $product->get_id() ) ) {

     // Define your tiered pricing structure

     $tiered_pricing = array(

         '1-2' => 20,

         '3-5' => 18,

         '6-10' => 15,

         '11+' => 12,

     );

     // Display the tiered pricing table

     echo '<div class="tiered-pricing-table">';

     echo '<h3>Tiered Pricing</h3>';

     echo '<table>';

     echo '<thead><tr><th>Quantity</th><th>Price</th></tr></thead>';

     echo '<tbody>';

     foreach ( $tiered_pricing as $range => $price ) {

         echo '<tr><td>' . esc_html( $range ) . '</td><td>$' . esc_html( number_format( $price, 2 ) ) . '</td></tr>';

     }

     echo '</tbody>';

     echo '</table>';

     echo '</div>';

}

}

// Add custom CSS for the tiered pricing table

add_action( 'wp_head', 'add_tiered_pricing_table_styles' );

function add_tiered_pricing_table_styles() {

echo '

<style>

.tiered-pricing-table {

     margin-top: 20px;

}

.tiered-pricing-table h3 {

     margin-bottom: 10px;

}

.tiered-pricing-table table {

     width: 100%;

     border-collapse: collapse;

}

.tiered-pricing-table th, .tiered-pricing-table td {

     border: 1px solid #ddd;

     padding: 8px;

}

.tiered-pricing-table th {

     background-color: #f4f4f4;

     text-align: left;

}

</style>

';

}

Code Explanation

• Action Hook: woocommerce_single_product_summary is used to display the tiered pricing table on the single product page.
• Function: display_tiered_pricing_table is the function that generates and displays the tiered pricing table.
• Category Check: Ensures the tiered pricing table is only shown for products in the t-shirts category.
• Tiered Pricing Structure: An array defining the quantity ranges and corresponding prices.
• HTML Table: Generates the HTML table with the tiered pricing information.
• CSS Styling: Adds custom CSS to style the tiered pricing table for a better appearance.

Customizing the Appearance:

• You can further customize the CSS styles to match your store’s design.
• Test the display on different devices to ensure it looks good on both desktop and mobile views.

Testing the Code

Let’s visit a product page from the T-Shirts category and check out whether our WooCommerce tiered pricing table is present or not.

Voila! Working perfectly.

Setup WooCommerce Tiered Pricing Using a Plugin

Earlier, we mentioned that you can use discount plugins to set tiered pricing in WooCommerce. There are a plethora of discount plugins available.

There are also dedicated tiered pricing plugins available in the marketplace. The best tier pricing for WooCommerce plugin we found is called Discount Rules for WooCommerce.

This plugin saves you from the coding hassles and makes creating discounts a breeze. Whether you are looking to set up advanced conditional discounts, bundle discounts, or user role discounts, this plugin is your one-stop solution.

Overall, this is one of the most powerful premium discount plugins in the market. Without further ado, let’s find out how to create pricing tiers in WooCommerce using this WooCommerce tiered pricing.

Set WooCommerce Tiered Pricing Using Disco

After you install the plugin, go to WooCommerce >> Discount Rules and click the Add New Rule button.

Here’s what the discount rule window looks like.

Input your discount rule name and select the discount type. We will go with the Bulk Discount option for this one.

Select All Products if you want to offer a discount to all your products.

If you want to offer WooCommerce tiered pricing to specific products, you can select them by clicking the Products option from the dropdown.

The following window is where you need to set the tiered pricing.

Let’s replicate the previous tiered pricing example using the plugin.

• Buy 1-2: $20 each
• Buy 3-5: $18 each
• Buy 6-10: $15 each
• Buy 11+: $12 each

We will start with 3-5 quantities. Input the values in the minimum and maximum quantity boxes, and then select the discount type.

The plugin allows you to set 3 different discount types here. If you want to set the above WooCommerce tiered pricing based on percentage, select the percentage option.

Click Add Range to insert additional fields.

After that, input your values as per your WooCommerce tiered pricing strategy.

Save the campaign and try it out from the front end. The price will remain the same for any two products or two quantities of the same product.

If you increase the amount to a minimum total of 3 products, the WooCommerce tiered pricing will apply.

For 6 more products, the product prices should be $15 each.

Finally, for 11+ products, WooCommerce tiered pricing should be $12 for each product. Exactly what we demonstrated through codes.

Customizing The WooCommerce Tiered Pricing Rule

If your product prices are in even numbers and you don’t want to calculate through percentages, you can always select the Fixed Discount in the discount type.

The Fixed Price Per Item option allows you to set a fixed price for every quantity of the product.

For example, if you set the Fixed Price Per Item value to 8 for 11+ products, then the cart page will count each product’s price as $8 when you add more than 10 products.

Remember how we applied WooCommerce tiered pricing to a specific category in the code example? You can do so by selecting the category from the Filter tab.

Select the category and save your rule. Let’s add some products from different categories to the cart.

As you can see, the discount is applied to only the targeted category products.

The plugin also allows you to add a wide range of conditions to your discount rules, allowing you to create complex discounts that cater to different customer bases.

Hit the button and select your condition from the dropdown. Let’s say you offer membership plans to your loyal customers and reward them with various discounts.

You have Silver, Gold, and Platinum membership plans, and you want to offer WooCommerce tiered pricing only to Platinum members. To do so, select User Role from the condition type dropdown and select the Platinum option from the user roles.

As a result, only Platinum members will enjoy this discount. In addition to adding WooCommerce tiered pricing in the carts, the plugin also allows you to display the tiered pricing table on product pages.

Click on the Settings tab of the discount rule.

Scroll to the following section and enable the table.

You can also customize the table.

Here’s the front view.

Why Do You Need WooCommerce Tiered Pricing

WooCommerce tiered pricing is a powerful tool that can significantly impact your online store’s success. Here are some benefits it offers:

Boost Sales and Revenue

• Increase Average Order Value (AOV): Incentivize customers to buy more by offering discounts for larger quantities. This directly impacts your overall revenue.  
• Clear Inventory: Offer tiered pricing on slow-moving or excess stock to encourage quicker sales and free up valuable inventory space.  
• Attract New Customers: Competitive tiered pricing can attract new customers who are looking for the best deals.

Improve Customer Satisfaction

• Reward Loyal Customers: Offer tiered pricing as a loyalty program perk to appreciate repeat customers.
• Enhance Perceived Value: Customers feel they’re getting a better deal when they see discounts for buying in bulk, improving overall customer satisfaction.

Optimize Pricing Strategy

• Price Discrimination: Offer different prices to different customer segments (e.g., wholesalers, retailers) based on purchase volume.
• Increase Profit Margins: While offering discounts, you can still increase overall profit due to higher sales volume.
• Flexible Pricing: Tiered pricing allows you to adjust prices based on market conditions, competition, and product lifecycle.

Manage Inventory

• Reduce Holding Costs: Encourage faster inventory turnover by offering discounts for larger quantities, reducing storage and carrying costs.
• Prevent Stockouts: By offering tiered pricing on popular items, you can encourage customers to buy in bulk, helping to avoid stockouts.

Competitive Advantage

• Stand Out from Competitors: Offering tiered pricing can differentiate your store and attract price-sensitive customers.
• Gain Market Share: By providing better value through tiered pricing, you can increase your market share.

Wrap up

By effectively implementing WooCommerce tiered pricing, you can enhance your store’s profitability, customer satisfaction, and overall competitive position. We hope this article will help you set up and apply this pricing strategy effectively and efficiently in your online store and grow your revenue.