First off - why do it? That's easy. To get more and larger orders.
If you can articulate and write a large order with pen and paper, accounting for volume discounts where applicable - your website should be able to do the same.
Determine the tiered pricing model that best suits your business, and let your website process more orders. Your pen will last longer.
2. Conversion Rate
3. Average Order Value
Tiered Pricing by:
1. Product Dollar Value
2. Cart Dollar Value
3. Customer Group
You must determine the means by which you sell your products. Whether you offer better unit pricing for x number of cases of a particular product, or base it on their total order amount (Cart value). In addition to product and cart value tiered pricing, you may have certain customers with blanket price levels due to their annual purchasing volume or other metric.
Mynt's Tiered Pricing extension for Magento expands functionality by adding an easy to read, self-calculating display on the front-end webstore view. As your customer types in their desired quantity to purchase, this extension controls minimums and increments, while calculating on the fly to show unit price, total units, total cases and total dollar amount.
Additionally, you may show specific tiers at a “Sale Price”.
Front-end Store view (Tiered Pricing by Product Dollar Value)
Front-end Store view (Tiered Pricing by Product Dollar Value - Sale Price)