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In the world of B2B, the “Request for Quote” (RFQ) is where the real business begins. But for a seller, providing a single flat rate is a missed opportunity. To truly capture a buyer’s interest and increase your average order value, you need to master the Tiered Quote.
Why Tiers Matter
A tiered quote doesn’t just offer a price; it offers a roadmap. It tells the buyer, “The more you partner with us, the more you save.” For buyers, it simplifies decision-making by showing the clear financial benefit of scaling their order.
How to Structure Your Tiers
A successful tiered structure usually follows a “Three-Rung Ladder”:
- The Entry Tier (MOQ): This is your Minimum Order Quantity. Price this to protect your margins while remaining competitive. It serves as the baseline.
- The “Sweet Spot” Tier: This is where you want most of your buyers to land. Offer a noticeable discount (e.g., 5-8% lower than the entry tier) for a volume that is ambitious but reachable for a mid-sized business.
- The Enterprise Tier: For high-volume buyers. This price should be your “best and final,” designed to win over large-scale distributors or industrial users.
3 Tips for a Winning Quote
- Transparency is King: Clearly state the price per unit for each range. Don’t make the buyer do the math.
- Highlight the “Value Add”: If the highest tier includes free shipping or faster lead times, mention it. Pricing isn’t just about the number; it’s about the total package.
- Use Anchoring: Place your highest price (the low-volume tier) first. When the buyer sees the price drop as the quantity increases, the bulk tiers feel like a significant “win.”