B2B eCommerce Tiered Pricing Structure | Clarity

Using Tiered Pricing for B2B eCommerce

How to make tiered pricing work for your B2B eCommerce business

PricingPricing can be tricky for any business, but it can be especially complicated for B2B. While B2C businesses can set one concrete price for their products, B2B businesses offer their products at different prices for different customers. They negotiate with their buyers and decide on a fair price based on how much the customer is going to buy and how often they might purchase from them. Pricing can get quite messy for B2B which is why B2B businesses need a set strategy and structure before they start making deals with buyers. One such strategy that works for many B2B businesses is tiered pricing. Tiered pricing can help B2B businesses effectively price and sell their goods and services.

What is Tiered Pricing? 

When it comes to pricing, tiered can have many different meanings. For all intents and purposes of this article, tiered pricing is when a business sells their goods and services to different customers or customer types at different prices. Businesses segment customers based on how big they are, how much they can spend, or how long they have been buying from their business.

Determine a Base Price

While in B2B, the list price for a product isn’t usually the price a customer ends up paying, it is still highly important to have an enticing yet reasonable base price listed on your website for visitors who aren’t registered to see. Many B2B buyers will do their research and narrow their potentials down to a short list before they start contacting sellers to get a price. If you don’t have a price listed, they may gloss over your company, or if the product is priced too high, they may cross you off their list. Your B2B business needs to determine its cost, do its research on what’s competitive, and leave sales some wiggle room when deciding on what general price to list on its eCommerce site.

Customer segmentationSegment Your Customers 

The next step is to create customer segments or customer tiers. Some businesses separate customers into groups based on their size, how much they spend, or how long they have been a loyal customer. Then each segment or tier is assigned specific pricing for products. Having customers put into segments help you easily control what price each customer is paying and ensures that they are charged the correct price at checkout.

Decide on Prices and Incentives 

After your customers have been segmented, you then have to decide on the prices, and possibly incentives, you will offer each segment. Instead of having to negotiate each deal individually with buyers, you can offer them top tier, middle tier, and bottom tier sets of prices. This can help you track your profits, customers, and other numbers much easier. You can also choose to add incentives to each tier such as exclusive deals and specials when they spend a certain amount based on the segment that they are in.

Clarity Can Help

For nearly a decade, Clarity has been providing world class business solutions for B2B eCommerce businesses. We understand the unique needs of B2B and have helped many succeed in the realm of eCommerce. Our team of expert developers has set up tiered pricing for numerous B2B clients on their eCommerce stores. To find out more about tiered pricing or to speak with an expert about a custom solution, call or click to contact us today!