Introduction - Pricing
The fourth tab in the bundle creation process, Pricing & Discounts, focuses on the discounts you want to offer to your customers. Additionally, you can apply taxation and shipping charges at checkout.
Discounts are optional, and this stage can be skipped if you wish. However, offering discounts is a proven way to increase engagement and improve your average order value.
Pricing
To simplify the process of configuring discounts, Bundle Builder's discount engine consists of three stages:
- Discount category (Flat or Tiered)
- Discount type (Percentage, Fixed discount, or Fixed price)
- Additional discount customizations
We recommend reading through this guide to help you decide which option is best for your bundle.
Discount categories
Your first decision is whether you're going to offer a Flat or Tiered discount.
Flat discounts are easy to set up and administer. One discount is applied to the entire bundle at a flat rate regardless of the number of products or total value. It doesn't matter if the customer buys 2 items or 10 items - they will receive the same discount at the end, be it 'x percent' off or 'x dollars' off.
Tiered discounts are more complex but can offer bigger incentives to customers. Using a tiered system, the more products customers purchase, the bigger the discount they receive. This can nudge customers into increasing their spending because the rewards are greater after buying hitting various thresholds.
- Tiered discount example: A customer buying birthday gifts adds 3 products to their bundle and receives a 10% discount on the total order cost. Upon realizing that adding 5 items increases the discount to 15%, they decide to purchase two extra products for themselves to benefit from the higher discount.
Discount types
The second thing you will need to determine is the discount Type.
Both Flat and Tiered categories provide three discount types to choose from:
- Percentage discount: Deducts a percentage (e.g. 10% off) from the total bundle value.
- Fixed discount: Subtracts a specific monetary amount (e.g. $10 off) from the total bundle value. We recommend setting a minimum purchase condition (see the Discount customizations section).
- Fixed price: You set the total bundle price (e.g. 5 products can be chosen for $30).
Note: Native bundles are currently only able to offer percentage discounts, while classic bundles can offer all of the above.
You will also need to enter the Discount value.
- If you've chosen a Flat discount then you only need to decide on one value.
- If you've chosen a Tiered discount then you will need to enter a new value for every tier you add.
Applying Tiered discounts
If you opt for a Tiered discount, that means you wish to apply multiple discounts based on the bundle size or value.
There isn't a limit on the number of tiers you can create. You can select one of three possible conditions as a base for each tier:
- Total number of products: The discount will only apply when the customer has the correct number of products in their bundle. (E.g. the customer must purchase at least 5 products.)
- Quantity of single product: The discount will only apply when the customer has the correct quantity of products in their bundle. (E.g. the customer is limited to 1 of each available product.)
- Total bundle price: The discount will only apply when the customer has reached the bundle price reaches a set value. (E.g. the customer has to spend $50.)
Clicking the Add tier button will display four options to help you define your tier discount:
- Tier condition
- Total number of products
- Quantity of a single product
- Total bundle price
- Tier quantity
- Conditional operator
- Greater than or equal to
- Greater than
- Less than or equal to
- Less than
- Equal to
- Discount value
In the example below, we've created two tiers:
- Tier 1: Bundles with 4 or fewer products receive a 10% discount.
- Tier 2: Bundles with 5 or more products receive a 15% discount.
Adding multiple discounts
If a bundle qualifies for more than one discount at the same time, by default, Builder Builder will only apply the greatest discount.
However, you can apply every tiered discount (when the criteria are met) by selecting Apply all of these discounts.
Caution: Enabling the Apply all of these discounts feature could drastically decrease the bundle price - we recommend proceeding with caution if you choose this option. For example, a customer could a receive 10% discount when adding 3 products to their bundle, then a further 15% discount on top when they add 5 products - taking the total discount to 25%.
Discount customizations
Each discount type (i.e. percentage discount, fixed discount, and fixed price) comes with additional customization options. The options vary depending on the discount type.
Simply check the boxes to apply a condition. Here's a quick look at what each one does:
Minimum purchase
If you choose the percent discount or fixed discount option, you can enable the discount once the bundle reaches a certain value.
Show discounted price
This box displays a 'compare at' price for the discounted bundle. If the box is checked, Bundle Builder shows how much customers would have spent when purchasing the same products outside of a bundle.
Allow total bundle price to be 0
Check this box if your customers can order bundles of free products.
Leaving this option disabled will prevent customers from adding free ($0.00) bundles to their carts. A free bundle could be configured in two ways:
- You've set the bundle up intentionally to be free, by offering free products or choosing a 100% discount rate.
- You've set up tiered discounts incorrectly, or have enabled the Apply all of these discounts option, resulting in product prices being discounted 100%.
If using tiered discounts, we recommend testing the bundle to ensure discounts work as intended. However, this option is a good backup to prevent free bundles from being added to the cart.
Setting up a discount: Step by step
Setting up a flat discount
To recap, here's a reminder of the steps for creating a simple flat discount:
Step 1: Select Flat discount.
Step 2: Click the Type field and choose a discount type.
Step 3: Enter a value.
Step 4: Set optional customizations.
Step 5: Click Next to proceed to the next stage (or Save to save your progress).
Setting up a tiered discount
Here's a recap of the steps for creating a tiered discount:
Step 1: Select Tiered discount.
Step 2: Click the Type field and choose a discount type.
Step 3: Define Tier 1 conditions and values.
Step 4: Add more tiers and repeat.
Step 5: Choose whether the bundle qualifies for multiple discounts at once. (Not applicable to Fixed price discounts.)
Step 6: Set optional customizations.
Step 7: Click Next to proceed to the next stage (or Save to save your progress).
Shipping and tax
Taxable
If your bundle is taxable, check the Taxable box. If enabled, Bundle Builder will automatically calculate the total tax for the bundle when it reaches the checkout stage. This option cannot be changed after you create the bundle.
Important: For single SKU bundles - the tax rate is taken from the bundle "Dummy product" and not individual products.
Requires shipping (displays for single SKU bundles only)
If your single SKU bundle contains physical products that require shipping, then check the Requires shipping box to add shipping costs. If shipping costs don't apply - for example, you sell digital products - then leave this disabled.
When enabled, Bundle Builder will use the default shipping options/charges that you set up in your Shopify Shipping and delivery settings.
Next steps
You can return to this tab at any time to edit the discounts you've set. However, it's not possible to change your tax setting.
Next, it's time to set your bundle conditions! This will ensure your customers receive the discount only after meeting certain criteria.