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How To Set Up Tiered Price Promotions in Magento

Sometimes, it feels like Magento will not allow you to set up well-known promotions without needing to install some third party extension. We’ve been able to create a tiered promotions using the native Magento Shopping cart price rules, and allow customers to buy more (and save more!).

This promotion is similar to “buy more, save more” sales at your favorite department store. Lets say you want to set up the following sale:

  • If a customer spends less than $150, they save 15%
  • If a customers spends between $150 and $300, they save 20%
  • If a customer spends between $300 and $800, they save 25%
  • If a customer spends over $800, they save 30%

We’ve created this promotion to not use promotion or coupon codes; that way everyone can enjoy the savings.

Before you start, it is helpful to outline the price tiers, and their savings. Each price tier will require their own rule. In this example, we will create four shopping cart price rules.

Once you have outlines the promotion, log into your Magento dashboard, and go to Promotions > Shopping Cart Price Rules. Next, click on the orange [+ Add New Rule].

Set the rule name, description, status and customer groups as needed. Make sure for Coupon*, you select No Coupon

Magento Tiered Price Promotion | No Coupon Needed

 

For the conditions, the rule should be:

If ALL of these conditions are TRUE:

Subtotal equals or less than 150.00

Magento Tiered Price Promotion | First Tier Conditions

 

For the actions, you want to apply percent of product price discount, where the discount amount is 15.

Make sure that for “Stop Further Rules Processing” you select “Yes.”

Magento Tiered Price Promotion | First Tier Actions

 

Click the orange [Save Rule] button to save the first price tier.

Now, we need to create the 2nd, 3rd and 4th price tiers.

 

 SECOND PRICE TIER:

Conditions:

If ALL of these conditions are TRUE:

Subtotal equals or greater than 150.01

Subtotal equals or less than 300.00

Magento Tiered Price Promotion | Second Tier Conditions

Actions:

Apply percent of product price discount, where the discount amount is 20.

Make sure that for “Stop Further Rules Processing” you select “Yes.”

Magento Tiered Price Promotion | Second Tier Actions

 

THIRD PRICE TIER:

Conditions:

If ALL of these conditions are TRUE:

Subtotal equals or greater than 300.01

Subtotal equals or less than 800.00

Magento Tiered Price Promotion | Third Tier Conditions

 

Actions:

Apply percent of product price discount, where the discount amount is 25.

Make sure that for “Stop Further Rules Processing” you select “Yes.”

Magento Tiered Price Promotion | Third Tier Actions

 

FOURTH PRICE TIER

Conditions:

If ALL of these conditions are TRUE:

Subtotal equals or greater than 800.01

Magento Tiered Price Promotion | Fourth Tier Condition

Actions:

Apply percent of product price discount, where the discount amount is 30.

Make sure that for “Stop Further Rules Processing” you select “Yes.”

Magento Tiered Price Promotion | Fourth Tier Action

 

Now, your tiered promotion is good to go! We encourage you to play around with different price breaks, discounts, and exclusions.

14 Comments

  1. Lindsey

    Thanks for this great tutorial!
    I used to create promotions manually. But as my shop grew, I decided to try some extensions. I mostly use free extensions but the one for promotions is paid (special promotions by amasty), I like it though it’s not very easy to set up and configure.
    Maybe you could write an overview of extensions for promotions? I think it would be interesting.

    1. ifuel

      Hi Lindsey!

      Thanks for the great idea! one of our clients’ biggest concerns is how to set up promotions that shoppers will want to use. Sometimes, it feels like the native Magento shopping cart price rules can be limited.

  2. Murat

    Hello, Is it possible to create the same type of tiered discount on a coupon based promo. We have alot of customers that come to us by way of our direct mail pieces and those mail pieces have specific codes on them and those codes in turn dictate which discount is available for them., However being that the offer can be different based on the quantity of products they are buying i need to be able to have a coupon code apply a tiered discount. Hope this is still an active thread and someone can maybe give me some guidance or ideas.

    1. ifuel

      Hi Murat:

      Using the same coupon code for the tiered promotion is not available with default Magento; you would need to install a 3rd party extension.

      Sorry I could not be of more help!

  3. David U

    What you have described here is exactly what we want to achieve but for some reason, it does not apply discount on the front end when we use the “no coupon” option

    1. ifuel

      Hi David:

      I’m sorry it is not working for you. What are the price breaks and discounts you want to offer?

      And is your promotion for all products, or only specific ones?

  4. David U

    My promotion is for all products and i just created the rule for one tier only just to test. At the point of checkout, it does not apply any discount. I am using magento 1.8.1.0 with sample data installed. Been wondering what could be wrong. I guess once it works for just one rule, then it will work just as you have stated in your post. Thanks

  5. David U

    Thank you for your excellent post. I have found out what the issue was. Thanks

  6. sachin

    Hi ,
    I want to create a coupon code which will give 20% Off on Total Cart value. However if 20% Off results in a discount of more than Rs50,000 then the discount should be limited to max 50,000 only.
    Scenario is as:

    Cart value is 3,50,000
    Coupon Code disc applicable : 20%
    Disc applicable 70,000

    However I want to limit this to 50,000 only.

    1. ifuel

      Hi Sachin:

      Magento does not allow you to set a limit for the Percent of product price discount. However, there are some really awesome Promotions Extensions that may help you achieve your goal.

  7. nicky

    I set up the promo and it seems to be working properly. The only problem I’m seeing is the the discount is not exactly 10%. It’s slightly higher. Any idea why? I’m having the same problem for all the %. It’s slightly higher than what I indicate.

    1. ifuel

      Hi Nicky!

      You may be calculating the discount off the price plus tax (and not off the price before tax).

      You can see how promotions and tax is being applied in your System > Configuration > SALES > Tax

  8. Mea Christie

    How could you alert the customer on the shopping cart that they are $XX away from that next tier to get the discount like this:

    “You are $10 away from 10% off. DEAL: Spend $250 and get 10% off.”

    1. ifuel

      There are some 3rd party extensions that will add a message to the cart (you can configure the logic to determine how much more the user needs to spend). Also, you can have your developer add a static block to the cart where you can add your own message and images.

      Hope that helps!

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