How to Set Up Tier Pricing for Your Products
Tier pricing lets you offer different prices based on quantity, customer type, or purchasing volume.
For example:
Quantity | Price |
1–9 | $20 |
10–24 | $18 |
25–49 | $16.50 |
50+ | $15 |
This is common for wholesalers, distributors, manufacturers, retailers, contractors, and other product-based businesses.
Why Tier Pricing Gets Difficult
Setting up a few pricing tiers is relatively easy. Keeping them accurate is the hard part.
Your pricing can become outdated when:
Supplier costs increase
Product costs change
Margins change
New products are added
Customers receive special pricing
Discounts or promotions change
For example, a product costing $10 and selling for $20 has a 50% gross margin. If the cost increases to $12 and the price stays at $20, your margin drops to 40%.
That problem becomes even larger when the product has multiple pricing tiers.
QuickBooks Online and Tier Pricing
QuickBooks Online can handle certain pricing rules and customer-specific pricing. However, pricing management can become difficult when you need to update many products or maintain pricing across multiple tiers.
And QuickBooks isn't the only system businesses use to manage their products and pricing.
Whether you use QuickBooks Online, another accounting system, or a combination of tools, the underlying challenge is the same:
How do you keep your product pricing profitable as costs change? How to Set Up Tier Pricing for Your Products?
A Better Way to Manage Tier Pricing
Learn how to set up tier pricing for your products instead of manually changing products one at a time, use a pricing workflow that allows you to:
Review current costs and prices.
Set your target markup or margin.
Apply pricing changes in bulk.
Review the changes before they go live.
Identify products that fall below your margin target.
Export or sync the updated pricing to your business system.
This approach works whether you manage 50 SKUs or 5,000.
Don't Let Tier Pricing Destroy Your Margin
Tier pricing should increase sales—not quietly reduce profitability.
The key is to connect your pricing decisions to your current costs and target margins.
The Pricing Assistant helps product-based businesses manage pricing, markups, markdowns, and margin protection across their catalogs, with QuickBooks Online integration available for businesses that use QBO.
Take Control of Your Pricing
If you're managing product pricing manually, it may be time to automate the process.
See how The Pricing Assistant can help you manage pricing and protect your margins.
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