Product pricing

what works best

[da_clicks]

We sell widgets and 90% of our orders are for 1, 2 or 3 widgets, however, every now and then we see orders for 25 or even 150 widgets.

I am trying to improve our site conversions and reduce confusion on our product pages. Currently, we offer quantity based pricing discounts such as 1-3 widgets is $X, 4-10 is 10% off, 11-25 is 20% off, and 100+ is 30% off. Our pricing breaks are not working, they only confuse customers and have resulted in just a small % of orders (5%) that contain 11 or more widgets.

I want to simplify this to maximize conversion while not ignoring those few (but very high revenue $$) sales that contain the larger number of widges.

Anyone have any ideas that may improve our current pricing strategy? I was thinking of $x each and 4 or more is 25% off or something like this. This could encourage those that buy 1, 2 or 3 to buy 4. But, this doesn't do anything to cater to those few large orders.

Thanks in advance for your thoughts.

[diamondgrl]

what about orders from 26-99 widgets? you didn't mention that price range. could that be what confuses customers?

[da_clicks]

diamondgirl,

I was wrong, our pricing breaks are
1-9
10-24
25-99
100+

Since alot of sales are 1,2 or 3, I was thinking of just

Price each
Save 25% if you order 4 or more
Save X% if you order 50 or more

Something that grabs the 1,2 or 3 buyers to get 4 or more but still caters to the large sales.

What do you think?

[PCInk]

Two things that help:

1) Don't show only the % saved - people can't work that out. Show the actual price per widget.

2) Make sure that the basket gives the price they will pay.

[da_clicks]

pcink,

thanks for the tips!

Our basket does show the calculated price, however the tip on displaying the actual price is great!

So, do you think moving from a pricing tier like
1-9
10-24
25-99
100+

to something like

Price each (for 1, 2, or 3)
4 or more 25% off
50 or more X% off

Does this tend to convert better?

Thanks again for the valuable info.

[sun818]

It sounds like based on your pricing scheme, you want to go after wholesalers more than retail customers. 1-9 does not give the retail customers an incentive to purchase more than one. Even a small savings can motivate a customer to purchase one more. You can also attempt to upsell if they happen to call you.

What I do, instead of 1-9 is to put 1+. Then the next quantity discount break would be 10+, 25+, 100+. It might be confusing to some, but it is efficient.

Also, do you ship international? You may want to note the three letter symbol for your country. For US Dollars, it would be USD.