What is tiered pricing?
Tiered pricing (also called quantity break pricing) rewards larger orders with a lower per-unit price. It protects your margins on small orders while giving wholesale buyers a reason to bundle purchases.
The key is balancing profitability with competitiveness. You set a base price that hits your margin target, then offer measured discounts that keep you above your price floor.
How to build profitable quantity breaks
Add up your full cost per unit—including packaging, shipping, and handling.
Choose a margin or markup target to set a defensible base price.
Define 2–4 tiers with meaningful quantity jumps (e.g. 1, 10, 50, 100).
Apply discounts or target margins, then enforce your minimum margin and price floor.
Round prices to your preferred endings and sanity check revenue/profit projections.
The calculator automates every step so you can focus on packaging the offer and winning the account.
Margin vs. markup vs. discount
Margin shows profit as a share of price. Markup compares profit to cost. Discount is the reduction off your base price. Use margin or markup to anchor your tiers, then translate to discounts for buyers.
Worked example
Suppose your total cost per unit is $12.50 and you target a 40% margin. The calculator sets a base price of $20.99, rounds to .99, and ensures every tier stays above a 35% margin and $18.00 price floor.
At 10 units with a 5% discount you land at $19.99 per unit and $74.90 profit. At 50 units (10% off) we bump the price to $19.25 to respect the 35% minimum margin, still delivering $337.50 profit. Enterprise buyers at 100 units hit the same guardrails, so you can negotiate confidently.