A pricing tier is a named set of pricing rules — retail, wholesale, market-day, friends-and-family — that you can apply to your products to get different prices for different channels. Instead of maintaining separate price lists by hand, you define the tier once and let it calculate prices from your costs or base price.
Tiers matter most when you sell through more than one channel. A wholesale tier might apply a lower markup because the buyer is purchasing in volume, while your retail tier carries full margin. Having both defined means you can quote a wholesale line sheet and an Etsy price without recomputing math or accidentally selling below cost.
Because tiers are formula-driven, they stay consistent as your costs change: bump an ingredient price and every tier reprices off the new cost, so your wholesale discount stays a true percentage rather than drifting into unprofitable territory.
Related terms
COGS (Cost of Goods Sold)
The total cost of materials, labor, and overhead directly tied to producing the goods you sell. Tracked automatically through purchases, recipes, and production runs.
Variant
A specific version of an inventory item distinguished by attributes like size, color, or scent. Each variant can have its own SKU, price, and stock level.
Transaction Method
The payment method used for a transaction, such as cash, credit card, PayPal, or Venmo. Can include fixed or percentage-based fees for accurate cost tracking.