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Quantity Discount Model: Everything You Need To Know (Full Guide)

Quantity Discount Model: Everything You Need To Know (Full Guide)

The Quantity Discount Model is a pricing strategy where customers get a lower price if they buy more of a product. Basically, the idea is that if customers purchase a larger quantity, they should pay less for each unit. This is a win-win: customers get a deal, and sellers boost their sales.

Now, why should you care about this? Well, if you’re running an online store, using this pricing strategy smartly can help you keep customers coming back, and increase your sales. Additionally, quality discounts help make your supply chain run more efficiently.

In this article, we’ll break down how this pricing model works and its advantages. Then, we’ll guide you through three simple steps to set it up in WooCommerce. So, let’s get into the details!

Understanding The Quantity Discount Model

What is the quantity discount model?

The Quantity Discount Model is like a smart pricing plan where the more you buy, the less you pay for each item. Additionally, many businesses, whether they make things or sell them, use this strategy to control their inventory and boost sales.

Quantity discount example
Quantity discount example (click to zoom)

By giving discounts on bigger orders, they motivate customers to purchase more, which not only increases total sales but also helps cut down on the expenses of storing too much stuff.

The role of quantity discounts in e-commerce

Quantity discounts are crucial elements of a business’ pricing and sales tactics. They encourage customers to buy more and keep businesses competitive.

So, by changing prices based on how much customers buy, companies can cater to various customer groups. Now, big buyers save money, and companies can cut production costs by taking advantage of economies of scale.

The psychology behind quantity discounts

Finally, quantity discounts have a big effect on how customers behave. When people feel like they’re getting a great deal, they’re happier and more likely to keep buying from the same brand.

Moreover, knowing they can save money by buying a lot at once makes them want to decide quickly. This psychological side is important for making the Quantity Discount Model work well.

How The Quantity Discount Model Works

Types of quantity discounts

Quantity discounts come in different types, like cumulative and non-cumulative discounts. Cumulative ones reward you for buying a lot over time, while non-cumulative ones apply to each order separately.

There’s also the tiered system, where the discount gets bigger as you buy more.

Cumulative quantity discount
Cumulative quantity discount (click to zoom)

Essentially, businesses need to pick the right type of discount based on what they want to achieve with their sales and how customers tend to buy.

Setting up a quantity discount structure

Creating a quantity discount system takes a lot of thinking about costs, what customers want, and what other companies are charging. Businesses need to figure out the best discounts to offer that will make people want to buy without losing too much money.

Moreover, they have to really know how much it costs to make their products and understand how much people care about prices in their target market.

Implementing quantity discounts in sales and marketing

Once you figure out your discount system, you need to tell people about it through sales and marketing.

So, where do we start?

Coupon marketing example
Coupon marketing example (click to zoom)

Well, clear messages about why it’s good to buy a lot and how much money you can save can boost sales. Additionally, making sure these discounts are easy to use on websites or in stores can help customers take advantage of them without any hassle.

Factors To Consider When Setting Up a Quantity Discount Model

Now that we understand the concept, let’s start creating quantity discounts! But before that, let’s briefly discuss the factors to consider when setting them up:

1. Understanding your cost structure

Understanding costs is key when setting up a Quantity Discount Model.

Quantity discount formula
Quantity discount formula (click to zoom)

Businesses need to look at both fixed (stay the same) and variable (change) costs to find the lowest price that still makes them money. Then, they have to think about everything they spend money on, like materials, workers’ wages, and other expenses like rent and advertising.

2. Analyzing customer buying behavior

Next, understanding how customers make buying decisions is another important consideration for making the Quantity Discount Model work for them.

Businesses should study how their customers decide what to buy and what makes them want to buy more. This helps companies create discounts that their customers will like and that will make them want to buy more.

3. Competitive pricing analysis

Lastly, analyzing competitors’ pricing is also important when establishing a Quantity Discount Model.

Businesses need to look at what their competitors are charging to make sure their discounts are appealing and competitive. This helps companies position themselves well in the market and take advantage of chances to get more customers.

How To Set Up A Quantity Discount In WooCommerce

Now that we understand the benefits of using a quantity discount coupon, let’s explore how to create one in WooCommerce using the Advanced Coupons plugin.

#1-rated WooCommerce coupon plugin
#1-rated WooCommerce coupon plugin

Advanced Coupons extends your basic coupon capabilities within WooCommerce. Apart from offering quantity-based coupons, this plugin makes it easy to create BOGO deals, shipping discounts, URL coupons, and many more!

So, assuming that you have this powerful plugin installed and activated, let’s proceed with the 3 steps to set up a quantity discount in WooCommerce:

Step 1. Add a new coupon.

To create a new coupon in WooCommerce, navigate to WooCommerce > Coupons in your WordPress dashboard. Then, click on the “Add coupon” button to begin creating a new coupon:

Creating a new coupon
Creating a new coupon (click to zoom)

Next, specify the coupon name and description.

Step 2. Set up the coupon data.

After creating the coupon, fill in the name and description of the coupon. Then, customize the coupon’s details under the General tab. WooCommerce offers three types of discounts:

  • Percentage discount
  • Fixed cart discount
  • Fixed product discount

The rest of the discounts on your screen are from Advanced Coupons. Now, choose the discount type that suits your promotion strategy:

Then, choose a discount type
Choose a discount type (click to zoom)

Once you’ve chosen the discount type, set the coupon amount as a fixed, decimal, or percentage value. You can also enable free shipping and choose an expiration date for the coupon:

Allow free shipping
Allow free shipping (click to zoom)

There are several other tweaks you can make to your coupon, such as restricting its usage based on user roles or creating a URL coupon.

Finally, after filling in the necessary information, save the coupon to proceed to the next step.

Step 3. Specify the cart condition rules.

Basically, to offer a quantity discount to your customers, you’ll need to configure the coupon’s cart conditions.

Advanced Coupons' cart condition features
Advanced Coupons’ cart condition features (click to zoom)

There are two cart conditions you can use to implement a WooCommerce quantity discount:

  • Cart Quantity: This option triggers a coupon once the buyer has a certain number of products in their cart, regardless of the product type.
  • Product Quantity in the Cart: This option applies the coupon based on the quantity of each product in the cart.

To set up the cart conditions, choose the appropriate condition and enter the required values:

Cart Quantity cart condition
Cart Quantity cart condition (click to zoom)

Finally, once you’re done, click on “Save Cart Conditions” to create your quantity discount coupon. The coupon will be ready for use, and you can share it with your customers.


Quantity discounts help you sell more and increase the value of each order. With Advanced Coupons for WooCommerce, setting up these discounts is simple.

In this guide, we explained the basics of quantity discounts:

We also covered the three easy steps to set up a quantity discount using Advanced Coupons:

Do you have any questions about this article? Let us know in the comments below!

author avatar
Belle Berber Writer, Content Manager

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