A volume discount is a pricing strategy in which gamers receive a reduced price for purchasing large quantities. In gaming, volume discounts encourage players to spend more by offering better deals for larger purchases. The concept is simple: the more you buy, the less you pay per unit - for example, “spend $50, get 10% off.”
A quick history of volume discounts
The volume discount pricing strategy traces its roots to ecommerce, where bulk buying incentives were used to boost sales. By tapping into the psychology of perceived value and sense of urgency, retailers gave consumers the feeling that they’re getting “limited-time-only” additional value for the same price, today shown to increase sales by up to 73%.
Since games have complex economies just like ecommerce shops, more game developers are beginning to implement volume discount pricing as a game monetization strategy, as well. However, volume discounts aren’t really possible in mobile gaming apps, since Apple and Google’s payments policies don’t support bulk or tiered pricing models. For example, the app stores require in-app purchases to have predefined prices - meaning developers can’t create custom discounts based on quantity purchased. Additionally, since there’s no cart functionality in-app, volume discounts would need to be structured within the store’s predefined pricing model - which is not impossible but is complicated.
Today, with the rise of webshops and online gaming payments, volume discounts are becoming increasingly popular for game developers. By marrying ecommerce and gaming, game developers can finally enjoy all the benefits of volume discounts, like increasing both average order value (AOV) and spend depth.
However, it’s a delicate balance - developers have to ensure players feel rewarded, not exploited, to maintain trust and loyalty. Let’s break it down.
Volume discount pricing examples
There are plenty of ways to introduce volume discount pricing into your game’s webshop, giving you more chances to find what resonates with your players and boosts your revenue.
1. Threshold discounts
Threshold pricing is a smart way to offer players better deals the more they buy. By increasing discounts as the number of currency or in-game items rises, players feel encouraged to make larger purchases to get the best deal. Once they hit a specific threshold, the discount applies to all the units, making the overall cost per unit lower. It’s an effective strategy for boosting sales, with some studies showing that it can improve profits by up to 33%. For example:
- Spend $100 = 20% discount
- Spend $200 = 25% discount
- Spend $300 = 30% discount
2. Tiered volume discounts
With tiered volume discounts, players receive progressively larger discounts on products based on the quantity they purchase at once. Each "tier" represents increasing purchase volumes, encouraging players to buy larger amounts to unlock better deals:
- Product 1: $200
- Products 2-4: $170 each
- Products 5-9: $160 each
- Products 10-19: $140 each
- Products 20+: $120 each
If a player opts for 8 products, they pay full price for product 1, $170 for products 2, 3, and 4, and $160 for products 5 through 8. This totals to $1,190, whereas if all items were charged at the original price, it would be $1,600.
3. Package pricing model
Capable of increasing sales by 20%, package pricing wraps everything a player might need into one deal - whether it’s in-game currency, skins, or exclusive content. Similar to tiered pricing but with a twist, the discount is applied to a set number of products, with the savings growing as the quantity increases. As players commit to more, the discount gets bigger, and it's applied evenly across all items in that package.
- 1 product = $100 ($100 per unit)
- 5 products = $400 ($80 per unit)
- 10 products = $700 ($70 per unit)
- 20 products = $1000 ($50 per unit)
Based on these packages, if a player wanted to purchase 7 products, for example, they would have to choose between going up to 10 products or purchasing a combination of package deals. Here, the best option would be buying a package of 5 products for $400 and a single package of two products at $100 each, with the total package price coming to $600.
Now, let’s dive into why you should consider getting started with the volume discount pricing strategy.
What are the benefits of volume discounts?
Volume discounts tap into the psychology of perceived value, urgency, and the drive for a better deal. But how does this translate into bigger gains for your game? Let’s break it down.
1. Boost average order value
As players are given more reasons to buy in bulk - whether it’s extra currency, exclusive content, or other perks - they naturally up their cart size to unlock better deals. The beauty of volume discounts lies in their ability to tap into that "more for less" mindset, encouraging players to make larger purchases in order to reach the next threshold. With each tier offering a better value, players are incentivized to spend more upfront, boosting average order value. The best part? This is an essential way to generate more sales without necessarily spending on attracting new customers.
2. Increase lifetime value
LTV is broken down into revenue and retention, and volume discounts increase both. On the revenue side, players are inclined to spend more because they feel valued and rewarded for their purchases. As for retention, by offering more bang for their buck, these deals encourage players to come back and get the most out of their investment. It’s a win-win: players feel like they’re scoring a great deal, and your game benefits from deeper engagement and repeat visits.
3. Increase spend depth
Players who take advantage of volume discounts are also more likely to invest deeper into the game, spending more over time on premium content, items, or upgrades. As players see the value in spending more to get more and are less resistant to spending, they’re encouraged to purchase in bulk more often. The more they spend, the more they feel they’re maximizing their investment, which often leads to higher overall spending over time.
So, now that you have a better idea of what the volume discount pricing strategy is and why it’s important, what does it look like in practice compared to normal in-game purchases? Let’s map it out.
What is the user journey for purchasing volume discounts?
With volume discount pricing, the player’s webshop purchasing journey gets a lot more exciting, thanks to the growing value they unlock with each additional purchase. Let’s break it down.
1. Discovery and awareness
First, the player has to learn about the volume discount. There are many ways to inform players and market the discount - for example, email marketing, retargeting campaigns, direct messaging, and social media. Make sure to emphasize the time-sensitive nature, tapping into the psychology of urgency and nudging players to act before they lose a great deal.
2. Browsing and selection
Next, the player evaluates their options. They might consider how many coins they need, compare different bundles, and see if there are any other ongoing discounts or offers (e.g., special promotions or limited-time deals). The player selects a product and deal based on their needs and budget. This decision is often influenced by factors like the price per unit, the value proposition, or the immediate benefit.
3. Checkout
When players reach the checkout, give them a visual reminder of how close they are to earning a bigger discount. Seeing what’s required to hit the next discount threshold encourages them to add more items to their cart - leveraging the psychology of perceived value and urgency.
With the what and why sorted, let’s dive into the best practices for maximizing the impact of the volume discount pricing strategy.
How to optimize your volume discount pricing strategy
Optimizing your game’s volume discounts requires a strategic approach to balance player happiness and revenue.
1. Personalize volume discounts based on player activity
By analyzing player behavior and offering volume discounts tailored to a specific player’s activity or purchasing habits, you can increase the chance of conversion. For example, if a player frequently buys in-game currency but often stops short of a higher tier, you could offer them a personalized deal that encourages them to push further, like “we noticed you’ve been purchasing coins often - here’s 10% off your next purchase of 2000 coins.” This personal touch makes the player feel valued and increases the likelihood they’ll make the purchase to take advantage of the discount.
2. Set achievable tiers
Structure your volume discount in a way that feels realistic for players but still motivates them to spend more - enticing them without making the player feel forced to spend too much. Set an initial discount threshold that’s easy for players to reach, which lowers the barrier to entry and makes the discount feel attainable right away. For example, a discount could kick in after they buy a small amount, like $50. As players continue to purchase, increase the discount for larger bundles or amounts. For example, spend $100, get a 10% discount.
3. Build urgency
By tapping into the psychology of scarcity and time-sensitive rewards, you can create a sense of urgency that compels players to act now. Use limited-time offers, like a 24-hour flash sale, or event-specific discounts, like a character launch, to nudge players toward immediate purchases. Be sure to add countdown timers, too. For instance, a timer that reads “Hurry! 2 hours left to get 20% off your next bundle” keeps the deal top of mind and pushes players to take action.
4. Promote it everywhere
Visibility is key when it comes to volume discounts, and promoting offers across multiple touchpoints is crucial to ensure players are constantly reminded of the deals. Prominent, well-placed pop-ups, banners, and notifications, such as in the webshop on the browsing screen or at checkout are a great way to communicate. Outside of the game, you can leverage email marketing, social media, or even retargeting campaigns to existing players.
5. Test and adjust
While you might have an initial idea of what discounts could drive the most sales, every player base is unique, and preferences can evolve over time. By consistently experimenting with different discount structures and messaging, you can refine your approach and ensure that your offers resonate with your audience. Monitor key gaming metrics like AOV, spend depth and LTV to refine your approach.
It’s your turn to offer volume discounts
Volume discounts aren’t just about boosting sales - they’re about creating a win-win for both you and your players. By offering deals that feel valuable and rewarding, you encourage players to spend more upfront while strengthening their connection to your game. When done right, volume discounts can increase average order value, deepen engagement, and turn casual spenders into loyal, long-term fans.
See how you can add volume discounts to your webshop with Stash start boosting LTV. Let’s talk.