Everyone knows quantity breaks are an easy way to boost sales, but did you know…
1 A small (5%) discount is often enough. .98 each, 2 for 1.79 often sells as much product as .98 each, 2 for 1.49, and assuming a 40% margin you make almost double the profit.
Acme makes this extremely easy by allowing you to enter each or extended price during item setup. Always start by entering the same price each for all quantity price breaks. Then reduce the extended prices, but only to the next lower price point to maximize profits!
2 Discount and amount saved almost never matter. Quantity and price points always matter. The quantity must be logical / desirable and the quantity break price must be “retail round”, in other words, just less than 1, 5, 10 dollars, etc..
3 The best quantity discounts should increase sales and NOT reward existing behavior. This tip is more about when NOT to use quantity discounts…
A punch card for buy 5 cups of coffee and get the 6th one free is not very effective, because all it does is reward existing behavior. Buy 5 cups of coffee and get a free doughnut is better, but the occasional “free doughnut day” may be the best of all. The goal is to get coffee buyers introduced to high margin doughnuts.