Quantity discounts for coffee brands

Quantity breaks for coffee brands, from 5% to 15% off each unit, priced by the margin engine on sourced costs, with the lift each tier needs.

1 unit

Revenue $49.29 to contribution margin $20.61 (41.8%)
Revenue
$49.29
Cost of goods
−$12.00
Pick and pack
−$3.20
Shipping label
−$9.29
Card fee per order
−$0.30
Refunds
−$2.46
Card processing
−$1.43
Contribution margin
$20.61

2 declared kinds cost nothing on this option

4 units, 15% off each

Revenue $145.29 to contribution margin $66.99 (46.1%)
Revenue
$145.29
Cost of goods
−$48.00
Pick and pack
−$3.20
Extra picks
−$1.44
Shipping label
−$13.89
Card fee per order
−$0.30
Refunds
−$7.26
Card processing
−$4.21
Contribution margin
$66.99

1 declared kind costs nothing on this option

Each tier, shipping charged, per order
OptionCustomer paysShipping chargedCostsMarginMargin %Conversion against 1 unit
1 unit$40.00$9.29$28.68$20.6141.8%—
2 units, 5% off each$76.00$9.29$45.21$40.0847.0%can lose 48.6%
3 units, 10% off each$108.00$9.29$61.84$55.4547.3%can lose 62.8%
4 units, 15% off each$136.00$9.29$78.30$66.9946.1%can lose 69.2%

Every figure is computed by the margin engine in Offer Suite's own code, in whole cents, from the costs below.

What the numbers say

Quantity breaks take a larger share off every unit as the quantity grows: 5% off each for two, 10% for three, 15% for four. Shipping is charged at $9.29, the 1 lb label passed through, so the offer's cost is the discount alone.

One unit keeps $20.61. Four at 15% off keep $66.99, 46.1% of what the customer pays: the four units share one pick-and-pack fee and one parcel, and the label for four weighs in at $13.89.

Against the single, each tier 2 units can lose 48.6%, 3 units can lose 62.8%, 4 units can lose 69.2% of conversion per visitor. Quantity breaks work when they move buyers up a tier, not when they discount the buyers who would have bought four anyway.

The cost structure, and where it comes from

Price$40.00, a bag of coffee. Offer Suite's dev store catalog
Unit cost$12.00. “Single Bag: price 40.00, unit cost 12.0 · mug gift: unit cost 4.0, compare-at 18.00” Offer Suite's dev store catalog
Pick and pack$3.20 per order and $0.48 for each extra item. Fulfill.com, 3PL pricing benchmarks (The Fulfillment Advisor 2025 survey of 600+ warehouses), read 23 September 2026
Shipping labelUSPS Ground Advantage, commercial, Zone 5, by weight rounded up to the pound: 1 lb $9.29 · 2 lb $10.50 · 3 lb $12.12 · 4 lb $13.89 · 5 lb $14.53. Packed weight is an assumption: 0.8 lb per unit. USPS Notice 123, USPS Ground Advantage Commercial, Zone 5 (effective 4 October 2026), read 13 October 2026
Card fees2.9% + $0.30 per order: Shopify Payments' online rate for a standard card on the Basic plan in the United States. Higher plans pay a lower rate, and premium cards a higher one. Shopify's pricing page for the United States, online standard card rates, read 12 October 2026 Rates by plan and country
Refund reserve5%, Offer Suite's default assumption for consumables. NRF's all-category figure for online sales is 19.3%, but consumables are rarely returned; use your own rate.
GiftA mug: unit cost $4.00, retail $18.00. The dev store's mug gift: unit cost $4.00, compare-at $18.00.

The offer, as an agent writes it

An agent writes this offer as one document for Offer Suite's API, validated against the offer schema. Below is one option of it: what the buyer gets and the price it promises. Offer Suite checks with a real cart that checkout charges exactly the prices above.

Show one option 4 options · excerpt
{
  "key": "qty-2",
  "display": {
    "title": "2 units, 5% off each"
  },
  "lines": [
    {
      "role": "main",
      "quantity": 2,
      "purchase": {
        "type": "one_time"
      }
    }
  ],
  "pricing": {
    "promise": {
      "firstChargeCents": 7600,
      "renewalChargeCents": null
    }
  }
}

How Offer Suite validates, versions and publishes a document like this one: offer documents.

Questions

Are quantity discounts profitable for coffee brands?

On these costs one unit keeps $20.61 per order, two at 5% off each keep $40.08 and four at 15% off each keep $66.99. The tiers cost money only on buyers who would have bought the same quantity at full price.

How much conversion do quantity breaks need for coffee brands?

Against one unit, per visitor: 2 units can lose 48.6%, 3 units can lose 62.8%, 4 units can lose 69.2%.

See what your own offers earn.

Offer Suite opens to Shopify brands a few at a time. Join the waitlist, or ask for a free profit audit of your past orders: realized profit per item and per offer option, what each costs you, and where margin leaks.