Maximizing Revenue: Why Ditching Volume Discounts for Tiered Pricing is the Key to Success

Are you offering volume discounts?

Solid strategy, but you're leaving money on the table.

Here's a better way…

Upgrade to a tiered pricing strategy and ditch volume discounts!

Here's why: Tiered discounts incentivize larger purchases, allow for more granular pricing, and are easier for customers to understand.

Plus, they can lead to increased Lifetime Value (LTV) and higher monthly recurring revenue (MRR).

Need proof? Check out this comparison:

Both TieredTech Co. and VoluCore Co. offer seats at $100/month. VoluCore offers a 25% volume discount for 300+ seats, while TieredTech offers a tiered 17% discount for 150+ seats and a 25% for 300+ seats.

The result?

With 300 seats, VoluCore gets $22.5K MRR (300 @ 25%), but TieredTech gets $23.7K MRR (150 @ 17% = 12,450 and 150 @ 25% = 11,200). That's a 5% increase in MRR over VoluCore.

TieredTech gives a price break earlier in the customer journey and further incentivizes its customers as they expand.

So, give it a shot - What could a tiered discount approach do for your business? Join the discussion on LinkedIn here.

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