2 min read

Price management for all types of business models

Por Mauricio Lang | Sep 11, 2020

Strategy Business Model

2 min read

Price management for all types of business models

Por Mauricio Lang | Sep 11, 2020

Strategy Business Model

As part of the administration of an online store it is possible that, depending on the business model and rules that you want to follow, it is necessary to establish some variations within the prices that the products reflect.

In one of the last entries tothis blog we talked about the ways in which promotions and dynamics can be generated within our virtual store.

As a continuation of the subject of inventory and price management, today we will analyze advanced price rules that can be configured independently of these campaigns, so if your store includes some type of special price throughout the year or you are considering using this strategy as a competitive advantage, I invite you to continue with me.

Within the configuration of your virtual store thereare several options to set advanced prices within the product catalog. Now, as usual, I insist, the ease and quantity of options that you have will always depend on the robustness of your eCommerce platform. During this blog we are going to cover 4 different types of price configurations with which we can adjust our virtual store to the business rules that we have previously established, which are group price, special price, quantity price and minimum price announcement.

Special price

The configuration of a special price within the catalog is defined in the same way in which the promotional prices are offered, which we analyze in the infographic In fact, it could be said that the special price falls within the promotions, having the characteristic that when activating said price functionality, the price without discount that the product had and that it will have once the window ends is continued time that we enable. It is also important to mention that the special price can be configured for both a specific product and for multiple products simultaneously, which allows configuration versatility.

Price by quantity or tier price

The quantity pricing feature allows the setting of a quantity discount for products being purchased. Said rebate can occur in a specific product listing or for a certain category / brand or on the main product page of the store. Additionally, it can be configured to advertise to a specific view of the store or to a select group of customers. This feature becomes very valuable for all those stores and brands that not only have a retail business model, but also offer volume discounts, without having to be a B2B sale. It is no longer necessary to load each of the products as product groups, but with the benefit of prices by quantity, a single SKU is loaded, and the different desired prices are configured according to the quantity to be purchased.

Price per Group or Group Price (as found in Magento)

The Group Price consists of enabling a special price for a certain group of customers to choose from. The configuration that Magento allows by default allows us to enable different prices for the types of taxes that may be needed depending on the country or state in which our client is buying. However, this functionality can be used to generate specific groups to which we want to give a differentiated price. As for the logic and development of the groups, it is up to the brand that owns the eCommerce, so if we have a select group of clients that we are interested in encouraging or reaching, this tool can be a very good ally.

Minimum advertised price or minimum advertised price

Sometimes, for stores that represent brands that do not belong to them, they are presented with minimum prices that they must adhere to. For these cases, the option of announcing a minimum price makes a lot of sense. As long as the price that the manufacturer defined as the floor is displayed on your home page, you can continue to sell at the lowest price that your store offers. In this way and as an example, if the manufacturer established that it has to be advertised at a price of $ 100, the product may appear in its store at that price while it sells at the 90 that it used to sell previously.