Here’s what most brands get wrong about discounting: they launch a site-wide 20% off sale for Black Friday, watch orders spike for a few days, and then—crickets. Sales completely dry up.
The real problem? You’ve just trained your customers to wait for the next sale. Now nobody’s buying at full price. Your margins are taking a beating, your average order value drops, and suddenly you’re stuck in this exhausting race where every competitor is yelling louder with bigger discounts.
But what if there’s a completely different approach—one that doesn’t turn your customers into discount addicts or wreck your profit margins?
Instead of “hurry, sale ends tonight,” what if your discount strategy was “buy more, save more”? That one shift transforms discounts from something that eats your profits into a growth engine that actually increases what people spend with you. The trick is figuring out which discount structures actually work for your products and where you are as a business.
Today’s guest brings insights backed by real data from millions of transactions across 100,000+ stores. Katie Keith is the Founder and CEO of Barn2, a company that’s been solving pricing and discount challenges in the WooCommerce ecosystem for years and recently brought that expertise to Shopify with their Bundles and Bulk Discounts app. Katie’s team has identified exactly which discount structures drive profitability without the usual downsides—and with Q4 in full swing right now, the timing couldn’t be better.
Let’s dive in.
What You’ll Learn
✅ Why blanket discounts train customers to wait for sales — and how quantity-based discounting completely flips the psychology from “buy now” to “buy more.” You’ll discover how to create permanent offers that increase cart values without conditioning your customers to expect constant promotions or bleeding your margins during regular periods.
✅ The critical difference between bulk tiered pricing and volume bundles — these are two fundamentally different approaches that most brands confuse. You’ll learn which strategy works best for low-cost items people buy in large quantities (think pens or supplies) versus products where you’re nudging customers to grab two or three instead of just one.
✅ How to offset rising customer acquisition costs through smarter discounting — with Google algorithm changes and rising CPMs pushing CAC higher across the board, you need more value from each customer on their initial order. Katie shares how the right discount structure can lift AOV by 30-40% while still giving customers compelling value.
✅ Why Shopify’s 25-discount limit doesn’t have to constrain your strategy — and how combining unlimited discounts into a single Shopify discount code lets you run different quantity discount types across different products, collections, or markets without hitting frustrating platform limitations.
✅ The strategic framework for matching discount types to your products — including how to think about whether customers might want to buy seven units versus 50, when volume bundles make sense for nudging incremental purchases, and why not all quantity discounts should look like what your competitors are doing.
✅ Stage-specific discount strategies for Q4 and beyond — whether you’re testing product-market fit or operating at enterprise scale, you’ll hear tactical approaches that work for your business stage, including how early-stage brands should think about customer behavior patterns versus how established brands can segment strategies across different product categories.
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Episode Summary
Steve sits down with Katie Keith, Founder and CEO of Barn2, for a conversation that completely challenges what most Shopify brands think they know about discounting. Katie’s company has analyzed transaction data from over 100,000 stores in the WooCommerce ecosystem and just recently brought all that expertise to Shopify—which gives her this unique bird’s-eye view of what actually drives profitable discounting versus what just kills your margins.
The Discounting Mistake Most Brands Make
They kick things off by tackling the biggest mistake brands make: that site-wide 20% off sale that spikes orders for a few days but basically trains your customers to never buy at full price again. Katie explains why quantity-based discounts work completely differently—instead of creating urgency around dates and deadlines, they create incentives to spend more anytime. The whole psychology shifts from “buy now before this ends” to “buy more and save,” which doesn’t condition customers to sit around waiting for your next promotion. This can actually be a permanent offer because it’s win-win: customers get better per-unit pricing, and you get higher cart values without the margin erosion of blanket discounts.
Bulk Tiered Pricing vs Volume Bundles
Here’s where it gets really interesting: Katie breaks down two completely different approaches to quantity discounting that most brands mix up. Bulk tiered pricing uses a table showing “buy 1-5 units get 5% off, buy 6-10 get 15% off” while still letting customers choose any quantity with the standard quantity picker. Volume bundles, on the other hand, replace the quantity picker with an interactive table offering fixed tiers like “buy 2 for $15, buy 3 for $17.” The difference matters enormously for your strategy. If you’re selling pens at a dollar each, you want bulk tiered pricing that encourages someone to buy 50 units. If you’re selling candles at $30 each, volume bundles that nudge customers from one to three make way more sense—nobody’s buying 10 candles regardless of the discount.
Cross-Platform Insights and Timing
What makes Katie’s perspective so valuable is the cross-platform learning. Bulk tiered pricing is extremely rare in Shopify apps but super common in WooCommerce. Volume bundles are everywhere in Shopify but virtually nonexistent in WooCommerce. Most brands just copy what their competitors on their platform are doing without ever questioning whether that strategy actually fits their products. Barn2’s app brings both approaches to Shopify, so you can match discount structures to your actual product characteristics instead of just following the crowd.
The timing couldn’t be better. With Google algorithm changes over the past two years crushing organic rankings and pushing customer acquisition costs higher across the board, brands need to extract more value from each customer on their initial order. Strategic quantity discounts that can increase AOV by 30-40% while still delivering customer value become essential for offsetting that rising CAC. Katie also tackles technical headaches—like Shopify’s 25-discount limit that forces many brands to choose between strategies. Barn2’s approach combines unlimited discounts into a single Shopify discount code, so you can run bulk tiered pricing on some products and volume bundles on others without hitting those frustrating platform limitations.
Strategy for Your Business Stage
The conversation wraps up with stage-specific guidance. For early-stage brands testing product-market fit, Katie recommends thinking carefully about which discount structure actually matches your product type rather than just installing what everyone else uses. For established brands firmly entrenched in one approach, she challenges the assumption that you have to choose bulk tiered pricing or volume bundles—you can run different strategies on different product categories based on how customers actually want to buy those items. This isn’t about following a template. It’s about strategic thinking that matches discount mechanics to customer behavior and what you’re actually selling.
Strategic Takeaways
👉 Shift from urgency-based discounts to volume-based incentives. Blanket 20% off sales train customers to wait for promotions and never buy at full price. Quantity discounts (“buy more, save more”) can be permanent offers because they don’t rely on deadline pressure—the incentive is always there to increase cart size. This psychology keeps margins healthier while still giving customers compelling value, and it works whether you’re doing $10K months or $1M months.
👉 Match your discount structure to how customers actually want to buy your products. If you sell low-cost items where people might buy 50 units (think pens, stickers, accessories), use bulk tiered pricing that rewards any quantity and lets them choose exactly how many. If you sell higher-ticket items where you’re nudging from one to three purchases (candles, skincare, apparel), volume bundles with fixed tiers work better. Don’t just copy what competitors do—think about the actual purchase behavior your products encourage.
👉 Use quantity discounts to offset rising customer acquisition costs. Google algorithm changes over the past two years have pushed CAC higher across the board. If your cost to acquire a customer jumped from $30 to $50, you need that first order to generate more revenue to stay profitable. Strategic quantity discounts that increase AOV by 30-40% while maintaining healthy margins let you absorb higher acquisition costs without sacrificing profitability. This matters whether you’re spending $500 or $50K monthly on ads.
👉 Don’t let Shopify’s 25-discount limit constrain your strategy. Many brands assume they must choose one discount approach and apply it uniformly because of platform limitations. Modern quantity discount apps combine unlimited discount rules into a single Shopify discount code, letting you run bulk tiered pricing on some products and volume bundles on others. You can segment strategies across different product categories, collections, or even markets without hitting technical constraints.
👉 Question whether your current discount strategy is right for your products or just familiar. Most Shopify brands use volume bundles because that’s what popular apps offer, while WooCommerce stores use bulk tiered pricing for the same reason—each ecosystem has its defaults. If you migrated platforms or are launching new product lines, don’t assume the discount structure you’ve always used is optimal. Ask yourself: would customers benefit from choosing their exact quantity, or do fixed tiers work better? Sometimes the answer is different for different product categories in the same store.
👉 For Q4 and beyond, think permanent strategy over promotional tactics. Black Friday Cyber Monday creates urgency that works regardless of your discount structure, but what happens in January when the promotional calendar goes quiet? Quantity-based discounting gives you a year-round strategy that doesn’t rely on artificial deadlines or conditioning customers to wait. Whether you’re early-stage testing product-market fit or enterprise-scale optimizing margins, building a sustainable discount framework now sets you up for profitable growth in 2026.
Guest Spotlight
Katie Keith
Founder & CEO, Barn2
Katie Keith founded Barn2 in 2009, initially as a WordPress web design agency, before transitioning to building plugins in 2016. Now her company solves complex pricing and discount challenges for ecommerce brands—and the numbers are pretty impressive. Her plugins serve over 100,000 stores in the WooCommerce ecosystem, with her flagship WooCommerce Discount Manager offering six different discount types (soon to be seven). That gives her team this incredible bird’s-eye view into which discount strategies actually drive profitability versus which ones just kill margins.
What’s really valuable is the data advantage. Analyzing millions of transactions across tens of thousands of active stores reveals patterns that individual merchants rarely observe. Katie’s background spans both technical development and strategic business thinking, which is evident in how Barn2’s solutions strike a balance between sophisticated functionality and execution that makes sense for busy merchants.
When she started researching Shopify discount apps to expand beyond WooCommerce, she discovered something surprising: the discount strategies popular in each ecosystem were radically different, even though both platforms serve similar types of ecommerce businesses. Bulk tiered pricing dominated WooCommerce but was rare in Shopify. Volume bundles were everywhere in Shopify but virtually absent in WooCommerce. Nobody was really questioning why.
That cross-platform perspective gives Katie unique insight into why merchants often just copy what competitors on their platform are doing without ever asking whether that strategy actually fits their products. Barn2’s recent launch on Shopify brings both bulk tiered pricing and volume bundle approaches to the platform, letting brands choose—or combine—discount structures based on product characteristics and customer behavior rather than just platform defaults. The company’s Bundles and Bulk Discounts app solves technical headaches like Shopify’s 25-discount limit while maintaining the sophisticated discount logic they’ve refined over years of serving six-figure stores.
What makes Katie’s perspective so valuable isn’t just the technical execution—it’s her emphasis on strategic thinking over tool adoption. She consistently pushes merchants to question whether they’re using a particular discount structure because it’s right for their products or simply because it’s what everyone else does. That focus on thoughtful strategy over template-following has made Barn2’s solutions essential infrastructure for brands that want to increase profitability through smarter discounting rather than just racing to the bottom on promotional percentages.
Links & Resources
- Barn2 Bundles and Bulk Discounts — Quantity discount app for Shopify (14-day free trial, Pro plan $50/month with no revenue limits)
- Shopify — Ecommerce platform
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