Tiered pricing gives wholesalers and distributors a way to quickly and easily test ways to increase sales and profit margins. It can also give you access to new customers with different price sensitivities.
The purpose of price tiers is to find ways to better match the value you offer to specific groups with the value they want. You can also use it as a way to incentivize larger sales, segment markets and give you access to customers at different price points that otherwise might not buy your product.
All of this can get complicated unless you have a single system in place to track and organize all the different tiered pricing methods. Obviously, this gets really challenging with Spreadsheets and such. You need a system that will carry your tiered pricing strategy across both your eCommerce sites as well as allowing your inside sales reps to access these pricing tiers in sales quotes. Also, to analyze the effectiveness of your different channels and pricing strategies, you also need to report on the sales of each affiliate, segment, bundle or volume discount allowing you to fine tune and maximize your sales and margin.
Zangerine makes tiered pricing a breeze. Since Zangerine provides pricing to both your sales staff and your eCommerce sites you only have to enter your pricing tiers once and any time you make a change to that tier it will be reflected everywhere you sell. You can create volume discounts at the product level, and create bundles of several products that act as a new product with its own price. In Zangerine you can also create as many segments as you like and add customers to those segments. Then in the product record just create a new price and assign it to each segment. Finally Zangerine can even handle affiliate and sales rep commissions.
Best of all you can see sales by segment, affiliate, bundle or volume pricing so you can test new strategies and quickly make adjustments that flow to every part of your business automatically!
Want to see tiered pricing in Zangerine for yourself?