Tier Pricing is a popular sales strategy that discounts products based on the quantity a customer is purchasing, with higher quantities resulting in a lower cost per unit. Tier Pricing provides an easy way to encourage customers to buy larger quantities of products.
For example, one vape cartridge might be regularly priced at $35.00, but you can use tier pricing to automatically charge a customer $60.00 for two vape cartridges. The customer's incentive of saving $10.00 can encourage them to purchase more items, increasing your total sales.
Pricing Tier Management
To view your existing pricing tiers, navigate to Products > Pricing Management. This takes you to the Pricing Tier Management page, where you can:
- View a list of your pricing tiers
- Filter your pricing tiers by method (Weight or Unit-Based) or status (Active or Inactive)
- Edit any existing pricing tiers by clicking on the Edit icon on the far right-hand side of the line
- Create a new pricing tier by clicking the '+ Add Pricing Tier' button in the upper left-hand corner of the screen
Adding a New Pricing Tier
To create a new pricing tier, follow the steps below:
Tip: If you are creating a pricing tier for a deli-style bulk flower product, visit this article to learn how.
Step 1: Navigate to Product > Pricing Management and click + Add Pricing Tier.
Step 2: Enter a name for the pricing tier in the 'Label' field. Your title may be either a number (e.g. '13' describing the gram price), text (e.g. 'Top Tier Cartridges'), or a combination of both (e.g. '$35/eighth').
Step 3: In the 'Method' selection, designate the new pricing tier as 'Weight Based' (typically used for products like flower or concentrates) or 'Unit Based' (typically used for products like edibles, topicals, vapes, or merchandise).
Step 4: By default, the ‘Active Pricing Tier’ toggle will be enabled, making your tier available in Product Management. Toggle this off to disable the use of this Pricing Tier.
Define the range for each price in the 'Quantity Start' and 'Quantity End' columns. Adjusting the end quantity will automatically update the next tier's start quantity so the tiers do not overlap. If you need to add another range, click + Add Row.
Step 5: Enter the following information into the Pricing Table:
- The ‘Start Quantity’ / ‘Start Weight’ column displays the amount the customer purchases (each row is a tier).
- The ‘Price per size’ / ‘Price per number of units’ column shows the total price the customer pays per tier. This is calculated by multiplying the ‘Start Quantity’ / ‘Start Weight’ with the ‘Price (per unit)’ / ‘Price per gram’.
- The ‘Price (per unit)’ / ‘Price per gram’ column is where you enter the cost of each unit/gram for the tier. You can edit the price for a tier, and the ‘Price per size’ / ‘Price per number of units’ column will reflect the updated total.
NOTE: If the units/weight purchased falls between tiers, the price will be calculated using the price of the lower tier.
To add additional tiers, click +Add Row. To delete tiers, click the X to the right of the row.
Step 6: Click the blue Save button.
After your new pricing tier has been saved, it will display in the list of tiers on the Pricing Management page and you'll be able to apply it to products.
Applying a Pricing Tier
To apply a pricing tier to a product, follow these steps:
Step 1: Navigate to Products > Product Management and use the search or filter functions to find the product you'd like to apply a pricing tier to.
Step 2: Click anywhere on the product line and scroll down to the 'Pricing' section on the product card that opens on the right-hand side of the screen.
Step 3: In the 'Pricing' dropdown, select Tier Price.
Step 4: In the 'Pricing Tier' dropdown, select the tier you'd like to apply. You can also create a new tier by selecting '+ Create New Tier' and filling out the required fields.
NOTE: Because tiers are created as either unit-based or weight-based, the product's unit of measure (UoM) will determine which tiers can be selected. Only products with the 'each' UoM can use unit-based pricing tiers. Products with all other UoMs ('grams', 'milliliters', etc.) can use weight-based pricing tiers.
Step 5: Once you've selected the pricing tier you'd like to use for this product, click anywhere outside the dropdown to save your changes.
After saving, the new pricing tier will be immediately applied to the product's entire inventory, with the new prices reflected at the point of sale and on your online menu.
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