Knowledgebase
How to set up quantity discounts in Magento
The Magento admin panel has a convenient feature that allows you to create product discounts based on the number of items from the same product purchased by the customer. In Magento this option is referred to as Tier Price.
To add quantity discounts log in to the admin panel of your store and go to Catalog>Manage Products. Find the product that you want in the table and click on its row to edit it. Of course, you can add discounts while creating a new product. On the form with the product settings click on the Price tab on the left. This will display all the available price settings. Find the option labeled Tier Price and click on the Add Tier button.
A table row with a drop-down menu and a couple of fields will appear. The drop-down menu is for the customer group; by default, it's set to ALL GROUPS which means that the discount(s) will apply to everybody. If you want to, you can choose a specific group that you've created. There's a field for the quantity. In that field you can put the minimum number of products that the customer has to order for the discount to apply. The last field is for the price of a single product after the discount is applied. For example, let's say that you sell a product for 50 dollars and you want to set up a discount of five dollars for each product when the customer orders four or more products. So in this case you have to type 4 in the Qty field and 45 in the Price field that's next to it. Then just click on the Save or Save and Continue Edit button in the top right corner.
You can add several discounts by clicking on the Add Tier button and configuring the options. For instance, if we use the above example, in addition to the five dollar discount for four and more ordered products, you can add a further discount of seven dollars per product for eight and more ordered products, making the price 45 dollars per product for four or more order products and 43 dollars for 8 and more ordered products. You can remove a discount by clicking on the delete button next to it.
After you edit a product by adding discounts clear the Magento cache from System>Cache Management and refresh the frontend to see the result.
On the product list page on the frontend there will be shown, in addition to the price for one product, the lowest available price based on the discounts that you have added. On the product details page all discounts will be listed based on the number of products that the customer has to order for the discounts to apply.