Author: Samiha Nawar Tarin

It is well known that discounts can drive insane sales in the short term.

A study shows that you can sell 73% more if you make discount offers.

But if you don’t do it correctly, You might have difficulties balancing profitability with customer satisfaction.

Remember, There are many companies who are offering discounts.

So you need to adapt and approach with innovative discount strategies.

In this article, I’ve rounded up the reasons why you need discount pricing strategies with 8 effective discount pricing strategies.

Let’s start.

What is Discount Pricing?

Discount pricing refers to offering a reduced price on your products or services, often to attract more customers or clear out excess inventory. It’s a way of making your products seem more affordable and appealing to shoppers.

For example, imagine you’re running a clothing store. You have a range of jackets that are moving slowly. You decide to offer a 20% discount for a limited time.

By offering a price reduction, you’re making sales while clearing stock without sacrificing too much of your profit margin.

Benefits of Applying Discount Strategies

Now that I’ve covered the basics of discount pricing, let’s look at the specific benefits you’ll gain by using effective discount strategies.

i. Attract New Customers

When you offer a discount, especially for first-time buyers, it lowers the risk for them to try your product. Think about it – a new customer is more likely to buy if they see a 20% discount than if they had to pay full price.

ii. Increase Sales Volume

Discounts don’t just reduce the price; they increase the urgency to buy. With limited-time offers or quantity-based discounts, customers are more likely to purchase more in one go because they want to take advantage of the deal. This leads to a spike in sales and larger order values.

iii. Boost Customer Loyalty

When customers feel like they’re getting a good deal, they’re more likely to return. A well-timed discount on a customer’s favorite product can turn them into a repeat buyer. By making them feel valued, you’re building long-term relationships that go beyond just one transaction.

iv. Clear Out Inventory

Sometimes, you need to get rid of old stock to make room for new items. Discounts make products more enticing, helping you clear out inventory faster without letting it sit around and lose value. This is particularly useful when you need to make space for seasonal or updated products.

v. Gain a Competitive Edge

Offering competitive pricing or exclusive discounts can set you apart from your competitors. If your competitors are selling similar products at full price, a well-positioned discount can make you the more attractive option. This can increase your market share and attract customers who were previously loyal to other brands.

vi. Encourage Repeat Business

Discounts that are tailored for repeat customers, like a “loyalty discount,” give shoppers an incentive to return. This discount strategy not only increases sales but also builds a sense of belonging and trust with your customers, which makes them more likely to continue purchasing from you.

vii. Enhance Brand Image

If you consistently offer meaningful discounts, your brand becomes known for providing value to customers. People will start associating your business with smart shopping, encouraging word-of-mouth marketing and social proof.

So, these are the benefits you can expect if you have propper discount pricing set up in your store.

But you need out-of-the-box discount Pricing Strategies as almost all companies offer discounts.

If you don’t approach it uniquely and correctly, your business might not get the desired results.

Let’s first learn what happens if the discount is not handled in the right way.

The Harmful Effect of Mishandled Discount Pricing Strategies

Here is one of the promotional discount pricing examples that has gone wrong-

The Russian Domino’s tattoo campaign.

The campaign offered 100 free pizzas per year for 100 years to anyone who got the Domino’s logo tattooed.

While intended to attract new customers, they severely underestimated how far people would go for free food.

Within hours, they were flooded with photos of new Domino’s tattoos and had to quickly impose restrictions due to severe revenue damage.

This shows how even successful attention-grabbing discounts can potentially backfire and destroy revenue.

Many more discount pricing examples went wrong.

As you can see, how you communicate through a discount pricing definition matters a lot, here’s some more reasons mishandling discount pricing strategies can hurt your business:

i. Overwhelming Demand Can Lead to Losses

If you set a discount offer without considering how many people will take advantage of it, you might end up with an overwhelming response that’s difficult to manage. This can drain resources and hurt your profit margins.

ii. Undermining the Value of Your Product

Offering massive discounts repeatedly or for the wrong reasons can reduce your product’s perceived value. Customers might start associating your brand with low-cost items, making it hard to justify higher prices in the future.

iii. Failing to Set Boundaries

Clear terms and conditions are vital in any discount campaign. Without setting proper limits, you could end up giving away too much, as Domino’s did, which can cause you to lose more than you gain.

iv. Damaging Customer Trust

If your discount offers seem confusing or are not executed properly, it can lead to dissatisfaction among customers. They may feel tricked or misled, which can harm your brand’s reputation in the long term.

v. Compromising Long-Term Profitability

While discounts can boost sales in the short run, if not executed strategically, they could hurt your long-term profitability. Over-discounting can lead to a race to the bottom where you can’t raise prices without losing customers.

So, a methodically crafted discount offer can significantly outperform your average sale and tragic losses.

That means not only do you have to pick innovative strategies, but those strategies also need to be right and result-driven.

8 Innovative Discount Pricing Strategies to Double Your Sales

Let’s get into the 8 innovative discount pricing strategies to get noticed in the crowded market and get profit :

1. Add time or quantity restrictions on discounts

While giving any discounts, if you add time or quantity discounts, you can keep your business risk-free.

Also, if you give a sale only for the weekend or only on select items, it creates a sense of scarcity and urgency.

Your customers feel that they need to act fast before the discount disappears.

This is a highly effective discount pricing strategy.

Now you must be wondering, can I add a time limit or quantity easily without hassle?

Yes, It’s super easy with the Dynamic Discount plugin which has a dedicated option for adding a timeframe or quantity.

2. Presentation of the Discount: Consider Carefully How You Present the Discount

No matter what kind of discount pricing strategy you choose, you need to be careful about how you present and frame those discounts.

It is highly essential to make them attractive to customers.

One smart tactic is to apply what’s known as the “Rule of 100“

According to marketing professor Dr. Jonah Berger, for products under $100, it’s better to express the discount as a percentage rather than a dollar amount.

The reason? The percentage will be a higher number than the dollar figure, making the discount seem larger and more impressive to consumers.

For example, if a $68.99 is discounted, expressing it as 29% off looks much more triggering.

3. Clear outdated, or discontinued stock through complimentary offerings

This is a smart way to clear out excess inventory or stock from your store. You can offer various complimentary offers and clear out excess inventory or stock from your store through various complimentary offers, which can be an effective way to utilize discount pricing strategies for small business.

Dynamic Discount plugin lets you offer stock-based discounts more easily.

4. Give a Discount on Top of Another Discount for Enhanced Appeal

This discount strategy is about creating that perception of an unmissable discount.

Even when the total amount saved is the same, your customer will find a discount added on another discount offer more attractive than a discount offered as a single figure.

As you can see here, a special offer is displayed under a 50% off offer.

Source

Presenting your discounts with psychological framing in mind can significantly boost the attention-grabbing power of your store sites. This is a creative and effective one among all other discount pricing strategies examples.

5. Provide competitive pricing or collaborate with well-known brands

Make sure your prices are similar to or better than your competitors.

You can also team up with popular, recognizable brands to make your products more appealing.

Source

A major reason shoppers abandon carts or use coupons is that they find better subscription offers elsewhere, either from browsing online or word-of-mouth recommendations.

If you can’t match the competition’s discounts, try running a limited-time promotional bundle with irresistible incentives like seasonal or exclusive products your customers really want.

Source

For example, a SaaS company could package some of its top-performing online tools together at a discounted rate as a special promotional offer. This bundle becomes harder to resist.

Another powerful tactic is collaborating with a popular brand for these types of bundle promotions. Major telecom brands leverage this discount strategy successfully. T-Mobile offers free Netflix to eligible subscribers, while Sprint and AT&T sweeten their deals by including Hulu and HBO respectively.

6. Offer attractive discounts to new customers

Give special discounts or deals to people who are buying from you for the first time. This can encourage them to make that initial purchase.

You can conduct product analysis to identify the most compelling features, benefits, or value propositions of your products that can capture the attention of potential customers and persuade them to make their first purchase.

Suppose, you give a special discount, like 25% off, only for their very first purchase.

• This makes it cheaper and more tempting for your first-time users to try your products or services.
• Once they become a customer, you hope they will like what you offer and come back to buy again, even without the discount.
• It’s a way to attract new customers by making the first purchase appealing with a discount.

This promotional pricing strategy for your business can help you acquire new customers, make the customer onboarding process even smoother, and gain market share.

If you need some of the greatest discount code ideas, this can be a good read.

7. Transform abandoned cart instances into chances for new sales

When shoppers put items in their online cart but don’t complete the purchase, follow up with them. Offer a discount or incentive to convince them to come back and buy those products they were interested in.

Studies show that almost 70% of online shoppers abandon their carts before completing a purchase. That’s a huge missed opportunity for sales.

Source

A smart tactic is to track and offer discounts on specific products that customers are leaving in their carts the most.

Then, for a very limited time window, offer tempting discounts on just those abandoned items. This discount pricing strategy will result in attracting new customers for your business.

8. Offer products that consumers can’t afford during the regular retail season

There are some luxury or expensive items that customers want but can’t justify buying at full price. During your sales or discount periods, make these premium products available at reduced rates that fit their budgets better.

As example,

Amazon’s Prime Day in July is basically a huge hyped-up sale event with really deep discounts on certain products.

In 2020, Prime Day was massive for Amazon and these third-party sellers. Amazon raked in around $7 billion from all the sales. The excitement and deal-driven mindset of Prime Day make huge sales.

So, you can see how well this strategy can work to level up businesses.

Keep Your Discount Prices Smart With Dynamic Discounts

Offering discounts is a great way to attract customers and boost sales, but it comes with risk too.

If you don’t plan it out carefully, you could end up losing money and devaluing your brand.

That’s why having a set of solid discount pricing strategies is so crucial.

At the same time, you need to protect your bottom line by setting restrictions and proper discount rules. To do that perfectly and without stress, You can simply rely on tools like Dynamic discounts.

It’s all about maintaining a perfect balance between keeping your customers happy and gaining profitability.

So, if you’re planning on running any discount campaigns, make sure you have a well-thought-out strategy & right tool in place.

Comment below & Let me know if you have any queries!

Discounts always trigger your customer’s buyer intent,

But adding these discounts to your Woocommerce stores

can be incredibly time-consuming and frustrating.

When it comes to adding different types of Woocommerce quantity discounts like Bogo offers, and

Bulk offers you might feel more difficulties.

But don’t worry, there’s a solution!

WooCommerce quantity discount plugins can easily get rid of this headache for you.

In this guide, I’ll not only explain what quantity discounts are,

but I’ll also walk you through step-by-step how to set them up for your store in 2024 easily.

So, Let’s get started.

What are WooCommerce Quantity discounts?

Offering quantity discounts is a strategic pricing strategy where you can provide discounts,

either percentage-based or a fixed amount, depending on the volume of products your target customer buys.

In simpler terms – the more your customers purchase, the bigger the discount they receive!

You can set different pricing tiers based on the number of items in a customer’s cart.

Let’s get more clear with an example :

You can offer a 10% discount if they buy 5 or more of a product. And a 15% discount for 10 or more, and so on.

It’s like giving them a virtual high-five for being a loyal, bulk-buying customer!

So, you can double your sales with Woocommerce quantity discounts!

Advantages of WooCommerce Quantity Discounts To Maximize Your Sales

As mentioned earlier, the biggest advantage of offering quantity discounts is that

it increases your sales (which means more profit for your business).

But there are some other great advantages too:

• If you sell physical products, you won’t need as much storage space in your warehouse. When customers buy more items at once, you don’t have to keep as much inventory stored up. This means you can get by with a smaller warehouse.
• You’ll have an edge over your competition because you’re giving customers a better deal than others, even if it’s for the exact same product.
• You’ll attract customers who always look for good deals and discounts. They’ll be really interested when they see they can save more by buying in bigger quantities.

So in simple terms, Woocommerce quantity discounts help you sell more and

need less storage space which means gaining high profit at a low cost!

How to Set Up Quantity-based Discounts For Your WooCommerce Store?

Now that you understand the importance of using quantity discounts for your online business with WooCommerce,

it’s time to move on to the main part of this article:

a step-by-step process on how to set up different types of Woocmmerce quantity discounts.

There are many tools available to create quantity discounts on WooCommerce but

today I’ll use Dynamic Discount for WooCommerce plugin to create the discounts.

To get started with this tool, follow this installation guide.

Step: 1 – Create New Discount

After you activate the plugin in your WooCommerce site, go to WooCommerce > Dynamic Discounts > Create New

Step: 2 – Choose Quantity Discount Type

Here, give your discount a name in ‘Discount Title’ and select the type of discount.

This plugin offers 6 types of WooCommerce discounts among them 4 types are basically quantity based. Here are they:

• Bulk Product Discount: If you sell more, you save more. For instance, you might offer a 10% discount when customers buy 10 or more units of a product.
• Stock Base Discount: This discount is tied to your inventory levels. You might use this to offer 15% off on items which you have overstocked, encouraging quicker sales to balance inventory.
• Bundle (Set) Discount: Bundle products together for a discount. For example, sell a camera, tripod, and bag as a set and offer 20% off the total price compared to buying each item separately.
• Buy X Get X: Here you encourage larger purchases with a direct incentive. If a customer buys three coffee packets, they get one free, effectively increasing both sales volume and customer satisfaction.

Step: 3 – Setting Up the WooCommerce Quantity Discounts

Now I’ll show you how you can set up WooCommerce discounts for each type of quantity-based discount type, using scenarios and quick guidelines.

Type 1: Bulk product discounts

Basically, bulk discounts are for those products that don’t sell very quickly or with an upcoming expiration date.

So, this plugin supports you like a Woocommerce Bulk discount plugin.

Suppose, you are offering 50$ off if any customer buys 11-15 quantities of caps from your store.

To set Bulk product discounts,

• Select the Bulk Product Discount option from the “Select a type of discount”.
• Then select “Specific Products” from All Product/ Specific Products/ Category and select the product “Cap“
• After that, Set up pricing tiers for bulk purchases. Here you will add 11 in the “Min Qty” bar, 15 in the “Max Qty” bar and $50 at the “Discount value” bar setting the discount type Fixed.
• Then, Save the discount.

How to Drive Sales with WooCommerce Bulk Discounts in 2024

Type 2: Stock Base Discount

You can use stock-based or inventory-based discounts to get rid of products if you have too many of them.

This quantity discount will help you to reduce the large amount of unsold storage.

Set up a time frame to create urgency.

To set up a stock base discount in your store,

• Go to “Select a type of discount” and select Stock base discount.
• Put an offer Start date and an End date to specify a timeframe so the customers feel the urgency to avail of the offer.
• Then, select All Product/ Specific Products/ Category as per your need and add the minimum quantity and maximum quantity of the products you want to offer the discounts.
• Add your desired discount type whether it is Fixed or you want to give a Woocommerce discount Percentage and then add the discount value you are offering.
• Finally, Save the offer.

**Don’t forget to put the discount title.

Type 3: Bundle (Set) Discount

Bundle (Set) Discounts allow you to offer a discounted price when customers purchase a set or bundle of specific products together. You can bundle slow-moving products with popular items to help clear out inventory that’s not selling well on its own.

Bundling also gives you a way to cross-sell complementary products and upsell customers to higher-value purchases.

To set a Bundle(Set) discount, you need to go to

• “Select a type of discount” and select Bundle Set discount.
• Select the products you want to include in the bundle. Then enter bundle “Quantity“.
• Next, choose the discount type. You can set fixed discount for the whole bundle or just per item or you can set a discount percentage per item.
• Lastly, put the Discount Value and Title and then Save the discount.

Type 4: Offer Buy X get X free / BOGO Quantity Offer

Buy 1 Get 1 offer is a popular promotional strategy where your customers can receive two products for the price of one.

For example, You can offer :

Buy 1 get 1 free, Buy 2 get 2, Buy 3 get 3, and so on.

Suppose You have a beauty product store and you want to offer buy 2 get 3 for your customers.

To create “buy X get X” discount rules,

• Select “Buy X Get X” from the “Select a type of discount” bar
• Then decide whether you want to put discounts on all of your products or specific products or any specific category.
• Now Set up the quantity. Since you want to give your customer a “Buy 2 Get 3” offer- So you will set the Min Qty 2, Max Qty 3. That means You are giving Free 1 item.
• Then click save.

You have the option to set Conditions for each of the above discount types. I’ll discuss more about it in an upcoming blog.

Final Thoughts

Discounts can be a powerful strategy for boosting your sales and customer loyalty in your WooCommerce store.

The Dynamic Discount plugin simplifies the process of setting up quantity discounts easily and gives you complete control over implementing discounts right from your WordPress dashboard.

We hope this article has provided you with valuable insights into the potential benefits of quantity discounts for your business, as well as a practical guide to creating them for your online store.

By implementing these types of WooCommerce discounts effectively, you can expect to see a significant boost in your annual profits.

Let us know if you have any queries!

Frequently Asked Questions(FAQs)

FAQ1. What are WooCommerce quantity discounts?

-WooCommerce quantity discounts are pricing strategies that offer customers discounted rates on products when they purchase larger quantities. The discount can be set as a percentage off or a fixed amount. For example, buy 3 and get 10% off, or buy 5 and save $10.

FAQ2. Why should I offer quantity discounts on my WooCommerce store?

-Quantity discounts incentivize customers to buy more, increasing your average order value and revenue. They also help clear excess inventory, boost customer loyalty through attractive deals, and stay competitive.

FAQ3. How do I set up quantity discounts in WooCommerce?

-While WooCommerce doesn’t have built-in quantity discount functionality, you can use plugins like “Discount Rules for WooCommerce” to easily create and manage quantity discount rules from your WordPress dashboard.