Feature Improvement - May 18, 2023
- Quantity-based pricing refers to a pricing strategy where the cost of a product or service is determined by the quantity purchased. In this pricing model, the more units or volume a customer buys, the lower the unit price or rate becomes.
- The rationale behind quantity-based pricing is to incentivize customers to buy in larger quantities, which can result in benefits for both the buyer and the seller. Buyers can enjoy cost savings by purchasing in bulk, while sellers can increase their sales volume and potentially reduce their production or inventory costs.
- Suppose you run a wholesale business that sells office supplies. One of your products is a box of pens. Here's an example of a quantity-based pricing structure you might use:
- 1-99 boxes: $2.50 per box
- 100-499 boxes: $2.25 per box
- 500+ boxes: $2.00 per box
- In this case, the more boxes of pens a customer purchases, the lower the unit price becomes. So, if a customer buys 50 boxes of pens, they would pay $2.50 per box, resulting in a total cost of $125. However, if they buy 200 boxes, the unit price would decrease to $2.25, bringing the total cost down to $450.
- Let's say you operate an online clothing store. You offer a volume discount on t-shirts for customers who purchase multiple items:
- Buy 2-4 t-shirts: 10% off
- Buy 5 or more t-shirts: 20% off
- If a customer buys three t-shirts priced at $20 each, they would receive a 10% discount, reducing the cost to $18 per t-shirt. Therefore, their total cost would be $54. However, if they decide to purchase six t-shirts, they would qualify for a 20% discount. In this case, the price per t-shirt would drop to $16, resulting in a total cost of $96.
- Quantity based pricing configuration added in Console Display Settings. If this is enabled, the admin can add quantity base prices for the products.
- Added quantity base price adding form UI as popup. Using this form admin can add new quantity base prices for each product and can manage them.
API Devolopment and Update
- Added new APIs for managing quantity base price modules. Updated the "validate cart" API and "order place" API with quantity base prices.
- If a product has quantity base prices, the customer can view that product and will see the quantity base prices of that product instead of unit price in the product detail page. Customers can see that quantity base prices as a carousel. When changing quantity, relevant quantity base price highlighted in product detail page. Each quantity base price is something different, and as you move quantity base price, the price will change. It's like having different options with varying features and prices, allowing customers to choose what suits them best. This strategy helps businesses cater to different customer needs and budgets while potentially increasing their revenue.