Tier pricing is an essential part of in-depth pricing strategies in ecommerce, particularly for shops that sell high volumes of a particular product and would like to encourage customers to buy in bulk. The idea is that the product comes with an normal price, however as you start to add more of them to your basket, the price per item comes down.
The best thing about it is that it is extremely simple to integrate into a Magento store.
When creating a product, locate the ‘Prices’ tab on the left side of the screen. Click this and select ‘Add Tier’. Enter the qty (quantity) that you’d like to start the tier pricing at, then add the new price per item based on the number added to the basket. And that’s pretty much all there is to it! To add more tiers, just press the ‘Add Tier’ button again – you can have as many as you like. If you want to remove one of the tiers, press ‘Delete Tier’.
Here’s the official Magento video for a more detailed demonstration: