The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Quantity breaks, 50 for $50 and 90 for $80? Or maybe there's another solution

Accelerate wealth. Build a business that pays freedom. Join more than 70,000 entrepreneurs and register for the Fastlane Entrepreneur forum. Remove ads? Join the INSIDERS.

biophase

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 25, 2007
7,707
36,302
5,083
Scottsdale, AZ
Original Pricing
50 for $50
100 for $90

I have a product that sells for 50 pieces for $50. These 50 pieces weigh just over 1/2 lb.
I have a large size version of that product that sells 100 for $90 pieces. These 100 pieces weigh 1.1 lbs.

So here was the issue, if you ship using the post office, anything under 1 lb ships first class mail for around $3. If it goes over 1 lb, it must go Priority Mail, about $8. So that 1 ounce is costing me $5 in shipping.

So my original solution was to lower the weight to below 1 lb by selling 90 pieces instead of 100. So this is what my offer would have looked like:

50 for $50 ($1 a piece)
90 for $80 (The public instantly knows that this is under $1 a piece)

This solved my $5 extra shipping issue.

However, I ended up going with a different solution. We know that the public expects to pay less per piece as the quantity increases right? I purposely want to give them easy math. I've always been using the price to govern the easy math. But what if I used the quantity instead.

So here's what I did.
50 for $50 ($1 a piece)
110 for $100 (The public instantly knows that this is under $1 a piece)

The public feels like they are getting 10 free pieces now versus the past solution where they felt like they were getting each piece at a minimal discount, a few cents each.

Why is this better? Here's the math. Let's just assume that each piece costs me $.40. And now let's look at the profit calculations.

Original
50 for $50 - cost 50 x $.40 = $20, $3 shipping, profit $27
100 for $90 - cost 100 x $.40 = $40, $8 shipping, profit $42

First solution
90 for $80 - cost 90 x $.40 = $36, $3 shipping, profit $41 (profit is actually less than before)
90 for $85 - cost 90 x $.40 = $36, $3 shipping, profit $46 (but this didn't look like a good deal right?)

Second solution
110 for $100 - cost 110 x $.40 = $44, $8 shipping, profit $48

The key is that for the extra 10 pieces, it was going to cost me $4 more, but I got an extra $6 in revenue. Also, it's too early to tell if the thought of getting 10 free pieces converts better than getting a few cents off per piece.
 

RazorCut

Legendary Contributor
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
May 3, 2014
2,031
7,110
1,736
Marbella, Spain
You know your product and therefore your customer way better than me but from an overhead view from someone who has shipped 100,000's of eCommerce orders:

I would use something like a 50, 75, 150 and a 200 or 300 option. If priority mail is faster I'd use that as the selling point on heavier quantities rather than just price as sometime time is more important than financial gain to a customer. If they want 100 they can buy 2 x 50.

I'd also include a line by the price of each one that says how much per piece it is.

$1 each
89c each
$0.75 each

or however you want to word it so they don't have to make the calculations themselves.

Will be interesting to see what your customers prefer on your new price points.
 

Sponsored Offers

  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
Yo! In 24 hours my Udemy courses go bye bye.. (for real this time) Gotta make way for...
  • Sticky
MARKETPLACE NEW: The Best School for Going Fastlane (Now open for summer enrollment)
Hi Guys! Just wanted to chime in and say that I am a part of Fox's Web School program. Though I...
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
Any update? Hey bud! When I can squeeze out the time to work, it's been going pretty well...
MARKETPLACE Not sure how to start? This free book will teach you how to build a successful web design business
Hi Fox. Starting the book and got through the introduction. Had a conversation with Andy Black...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Chris is super sharp and is aware of many facets of entrepreneurship and can help get your...
  • Sticky
MARKETPLACE Entrepreneur's Toolbox: Company Formation, Virtual Mailbox, Registered Agent, Remote Online Notary
Appreciating the transparency and lack of hidden fees. The website is very up-front and user...
Introducing MJ's Personal Unscripted Network, Join Now for FREE!
Any chance to make it available outside of US? It has been available outside of the US on...

Forum Sponsor

Learn Fastlane Business Skills & Get Profitable Within 30 Days...

Get Started Now

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom