Tiered (or volume) pricing is a common practice in the cannabis industry that typically involves charging a lower price per gram when customers buy larger quantities. Use tiered pricing in Greenbits to:
| Encourage upselling | Give your customers an incentive to buy more by automatically offering price breaks on larger quantities. |
| Create a consistent pricing structure | Pricing tiers (also referred to as "shelves") allow you to easily organize your Product catalog by price and quality - e.g., Bottom Shelf, Mid Shelf, and Top Shelf strains. |
| Control how customers can "mix and match" | Customers often want to "mix and match" – for example, buying two different eighths for the price of a quarter. You can configure your pricing tiers to allow mixing and matching with any Products, only Products of the same tier, or not at all. |
| Easily update prices | Update prices for all Products assigned to the same tier in one step, as opposed to updating prices on individual Products one-by-one. Tiered pricing offers the flexibility to do this even if you choose not to offer price breaks on larger quantities. |
| Reduce or eliminate coins from your tills | Tiered pricing allows you to take advantage of the Weigh Heavy setting, which automatically rounds prices down to your specified amount when fractions of grams would otherwise add a few cents to the total. Using tiered pricing consistently, along with Inclusive taxes, may even allow you to eliminate coins altogether. |
Tiered pricing versus standard pricing
Standard pricing is the default, and any Product set to standard pricing has a fixed price per unit. For example:
|
Weight |
Price | Price Per Gram |
|
1 gram |
$10.00 | $10.00 |
|
2 grams |
$20.00 |
$10.00 |
|
3.5 grams |
$35.00 | $10.00 |
Tiered pricing automatically applies price breaks when a customer buys larger quantities without having to set up or apply a Discount Plan. For example:
|
Weight |
Price | Price Per Gram |
|
1 gram |
$10.00 | $10.00 |
|
2 grams |
$18.00 |
$9.00 |
|
3.5 grams |
$30.00 | $8.57 |
Notice how the price per gram decreases with each successive weight threshold, giving your customers an incentive to buy more in order to get a better deal.
Keep in mind, however, that your wholesale cost and tax rates are fixed, so the trade-off is lower profit margins at higher weight thresholds.
Weigh Heavy setting
Apply a Weigh Heavy to your pricing tiers so budtenders have some "wiggle room" when weighing flower.
For example, a Product's tax-included price is $10.00 at the 1-gram threshold. A customer orders 1 gram, but the closest the budtender can get without under-weighing is 1.02 grams:
Without a Weigh Heavy, Greenbits will count the extra 0.02 grams in the price calculation, resulting in a total of $10.20
With a Weigh Heavy, Greenbits will ignore any extra fractions of a gram within a range that you specify. For example, if you set your Weigh Heavy to 0.10 grams, Greenbits will price any amount from 1.00 gram to 1.10 grams at the $10.00 price point the customer expects, with the added bonus of not having to deal with coins.
What's next?
Compare and contrast tiered pricing strategies to determine which one is best for you, then learn how to set up tiered pricing.