Volume pricing and unit price ladder
Volume pricing rewards bigger orders. Once a break is reached its discount applies to the whole quantity, and you see the effect on the total.
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How to use it
- Enter base unit price, order quantity, tier 1 from quantity, tier 1 discount, tier 2 from quantity and tier 2 discount.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Discount = that of the highest tier whose break the quantity reaches. Unit price = base price × (1 - discount ÷ 100). Total = unit price × quantity.
Example
Inputs: Base unit price = 10, Order quantity = 250, Tier 1 from quantity = 100, Tier 1 discount = 5 %, Tier 2 from quantity = 500. Result: Unit price: 9.50; Order total: 2,375.00; Saving versus base price: 125.00.
Limits and caveats
- Applies the tier discount to the whole quantity. Some suppliers discount only the units above each break.
- An order just over a break can cost less than one just under it, so review your breaks.
Questions about this tool
How should I set the breaks?
Tie them to real pack sizes such as a carton or pallet, and check the discount never pushes price below cost.
Why can 100 units cost less than 99?
The discount covers the whole quantity once the break is reached. That is normal and nudges buyers up a tier.
Can I use only two tiers?
Yes. Give tier 3 the same discount as tier 2 and the price will not change beyond it.