Providing incentives to your buyers based on their buying activity is one of the best strategies to encourage them to buy more. With dynamic pricing, you can change the price of your products based on certain criteria and increase your income by selling more.
Find out how.
Dynamic content is often an overlooked feature on WordPress and WooCommerce, but it offers a lot of flexibility. It allows you to take information from the website and automatically insert it into designated areas.
For example, dynamic pricing can help you increase your store’s revenue and drive sales to specific products that you might want to focus on. In the right hands, it becomes a great tool to have when marketing and growing your WooCommerce store.
In this article, we’ll walk you through everything you need to know about dynamic pricing on WooCommerce. We’ll start with a general introduction to the concept, some of the different ways you can implement it, and how it helps you.
Next, we’ll show you step by step how you can get started using your own dynamic pricing strategies with a free WooCommerce dynamic pricing plugin.
Let’s get started!
WooCommerce dynamic pricing
What is WooCommerce dynamic pricing?
Dynamic pricing is a strategy where you change the price of a product based on certain criteria, such as the number of items a user purchases, customer role/status, customer order value, the customer’s order history, etc …
In almost all situations, you will give the buyer a discount if they meet certain conditions.
A common example is wholesale pricing, where you change the unit price of an item based on how much a buyer orders.
Another common example is ” Buy X, Get X Free “. For example, you can run a special “ Buy 3, Get 1 Free ” offer on a certain item or category of items.
Or, you can give certain VIP members access to special discounted prices (which you can do on WooCommerce by targeting their user role ). You can set VIP status by their order history (eg targeting loyal customers), if they are a paying member, etc …
The goal with all of these dynamic pricing strategies is to encourage your buyers to buy higher quantities and/or place more frequent orders from your store.
When should you use WooCommerce dynamic pricing?
At a high level, the goal of dynamic pricing is to increase your revenue by increasing average order value and lifetime customer value.
For example, if you offer a discount if a user buys more than 5 items, it will encourage them to order more than 5 items when they might have just ordered 2-3 items without dynamic pricing.
Here are some specific benefits and situations where dynamic pricing can help you:
1. Stimulate sales of specific products
You can use dynamic pricing to drive sales of a specific product by selecting that product for dynamic pricing.
Besides increasing revenue, this can be a great way to dump products that aren’t going as well as you hoped.
2. Increase the customer lifetime value
In addition to increasing your revenue for individual orders, you can also use dynamic pricing to increase customer lifetime value by giving special discounts to repeat buyers. For example, you can unlock special prices when a buyer hits certain goal targets such as:
- Lifetime Order Value
- Number of lifetime orders
You can also create reliable recurring income by offering special prices to members who pay monthly fees. For example, the Tripadvisor Plus service offers members special discounted prices on hotels in exchange for a fee of $ 99 per year. This not only gives Tripadvisor recurring annual revenue but also encourages people to always book their hotels through Tripadvisor as they have already invested money in the annual fee.
3. Obtain insight into customer behavior
Finally, you can also use dynamic pricing strategies to generally get more insight into your customers’ buying behavior. For example, if you find that customers are happy to buy certain products at wholesale, you can use that information to set up new products or bundles.
How to set up dynamic pricing on your WooCommerce store
Dynamic pricing is not a basic feature of WooCommerce, so you will need the help of a WooCommerce dynamic pricing plugin to set it up.
Because this pricing strategy is very popular, you can find several free or paid plugins to configure this.
There is a dynamic pricing plugin from a third-party developer (Element Stark) listed on the WooCommerce extensions marketplace. However, it’s a bit pricey at $ 129, and you can find cheaper options (or even free options) to keep your store cost down.
For a more affordable option, you can consider the WooCommerce Dynamic Pricing & Discounts plugin at CodeCanyon.
Or, if you want to keep things free, you can also find some popular free dynamic pricing plugins:
- Advanced Dynamic Pricing for WooCommerce is a popular free option at WordPress.org with an excellent 4.8-star rating.
- Discount Rules for WooCommerce – a popular option focused on all types of discount rules, including dynamic pricing.
- WooCommerce Dynamic Pricing and Discount Rules – a free option from a developer with several popular WooCommerce plugins.
- ELEX WooCommerce Dynamic Pricing and Discounts – another popular free plugin from an established WooCommerce developer.
Because we want to make this tutorial accessible to everyone, we will be using the free Advanced Dynamic Pricing for WooCommerce plugin in the step-by-step guide below.
Most of the other plugins work on the same basic principles, but their interfaces will obviously be different.
1. Configure plugin settings
Before you start creating your pricing rules, you should first go through the plugin settings, which you can access by going to WooCommerce → Pricing Rules → Settings.
The plugin is configured so that you don’t automatically need to change any of the settings – it should only work with the defaults. However, you might want to make some changes for your unique situation:
If you’re not sure how a specific setting is going to change things, you can always come back to this area once you get a better feel for how the plugin works and how you might want it to work. to adjust.
2. Create a pricing rule
Each dynamic pricing strategy that you implement is called a “pricing rule”.
You can create rules that target specific products or you can create rules that apply to all products or products with a specific category/tag.
When setting up a rule you get a lot of different options, so we’ll be sure to give you several examples of how you might want to set things up.
To create your first rule, go to WooCommerce → Pricing Rules → Rules :
At the top, you can configure a few basic settings:
- Title – an internal name to help you remember what the rule does.
- Can be applied – how many times the rule can be applied – you can make the rules of use unlimited or limit their use from 1 to 10 times.
- Apply at first too – how to apply the rule to items in the user’s cart – you can apply to the most expensive items, the cheapest items, or only the items that appear in the cart.
- Coupon – if you check this box, the plugin will add items to the cart at the normal price, but will automatically apply a promo code to add the discount.
Once you’ve made these decisions, you can use the buttons below to configure your rule. You have eight different options:
- Product filters – choose the product (s) the rule will apply to.
- Product discounts – choose the type and amount of the discount.
- Role discounts: Only apply the pricing rule to buyers with a certain user role.
- Bulk rules: Set up wholesale discounts where you apply different prices to different quantities of items.
- Free products – give users one or more products for free if they meet the conditions.
- Cart adjustments – apply discounts, fees, or free shipping to the buyer’s entire cart.
- Cart conditions – only apply the rule if a buyer meets certain cart conditions, such as the total value of their cart, number of items, their connected status, date/time, etc.
- Limits – set an overall maximum usage of this rule.
The important thing is that you can mix and match as many or as few of these options as you want.
For example, you can limit the rule to certain products and limit it to certain user roles and require the buyer to have at least $ 200 in their cart to be eligible. Or, you can only apply the cart condition and not limit the discount in any other way.
When you click on the options, they will expand additional settings areas to configure this type of rule. Once you open a settings area, this button will disappear from the list at the bottom:
So that’s the basic idea of how pricing rules work. Now let’s take a look at some specific examples of how you can apply some of the dynamic pricing strategies we discussed above.
Example 1: Dynamic wholesale pricing
For this first example, suppose you want to set up bulk pricing when the unit price of an item changes based on how much a buyer purchases.
First, you need to add the product filters and choose the product (s) for which you want to enable bulk or wholesale pricing. We’re going to set up a special rule for our t-shirt, but you can target multiple other products, product categories, or even all of your products.
Next, you need to add the bulk rules to set up your bulk pricing. You can set up fixed or percentage discounts. Or, you can also enter fixed prices (instead of a discount). Percentage discounts would be especially useful if you are applying a rule to multiple products with different prices.
For discounts or fixed prices, you can apply the discount to each item or a set (for example, all five items).
For this rule, our wholesale price will be:
- 1-5 t-shirts – full price
- 6-10 t-shirts – $ 3 off per shirt
- 11-20 shirts – $ 5 off per shirt
- Shirts 20 + – $ 8 off per shirt
A quick note – if you are using Elementor WooCommerce Builder, the plugin will automatically add a bulk price grid wherever you have placed the WooCommerce Builder Add to Cart widget.
Example 2: Dynamic role-based pricing
For this second example, let’s say you want to give users with a certain role a dynamic price on the Elementor t-shirt. Let’s say if a person is an author on the website, they get a special price of just $ 10 per shirt.
To configure this, you need two rules.
First, you would use the Product filters rule to target the t-shirt again.
Then you would apply the Role discounts rule to target a user role and enforce the fixed unit price.
Example 3: Discount with minimum expenses
For this last example, let’s say shoppers can get $ 5 off the cost of each T-Shirt they buy, but only if they spend a minimum of $ 100.
To configure this, you would need three rules.
First, you need to use the Product filters to target the products you want to apply the discount to.
Second, you would use the Products Discounts to add the discount per item. You can also specify a total maximum discount – for example, $ 5 off per shirt, but no more than $ 20 in total.
Finally, you would use the Cart conditions to specify that the buyer’s cart subtotal must be greater than $ 100:
If the value of a buyer’s basket is less than. $ 100, they will pay at the regular price of the shirt. But if the value is over $ 100, they will automatically get a $ 5 discount on each shirt.
These are just three examples of the types of WooCommerce dynamic pricing that you can set up. You can play around with your own setup to find the perfect strategies for your store.
3. Customize dynamic pricing details
As you’ve seen in the examples above, the plugin will sometimes add its own content to the product page to communicate your dynamic pricing rules to customers (e.g. bulk pricing grid). Again, if you are using Elementor WooCommerce Builder, these details will usually appear wherever you add the Add To Cart widget.
A good option in the plugin, however, is that you can use the WordPress Customizer to control the style and layout of these additions.
To do this, go to Appearance → Customize and use the new sidebar options:
What Discount Strategies Should You Use On WooCommerce?
There are several different dynamic pricing strategies that you can use with the plugin (s) above. Depending on your store, you might be able to use more than one strategy or you might just stick with one type of dynamic pricing strategy.
Here are some ideas:
- Bulk Pricing Levels – Offer cheaper prices in different tiers as quantity increases (like our first example).
- Member-only pricing – offer special prices for certain user roles (like our second example).
- High Order Value Discounts – Offer discounts on certain items if a user’s total order value exceeds a certain amount.
- Loyalty discounts – offer special offers to loyal customers – for example, people who have placed more than 10 orders.
- BOGO Offers – Offer “Buy X, Get X Free” offers. You can also add conditions to the cart to limit them, such as requiring a minimum spend.
- Product Bundles – Create product bundles that offer lower prices if people buy multiple products.
- Time-based discounts – offer lower prices on certain days/hours. This can be especially useful if you’re using WooCommerce as something like a restaurant ordering system, where you might have days of the week that you want to offer dynamic prices on.
Increase your store’s revenue with dynamic content
WooCommerce dynamic pricing is a great way to increase your store’s revenue by encouraging your buyers to buy more and more often. They will have discounts on the items they want and you will have higher revenue per order and lifetime value – it’s a win-win.
To set up dynamic pricing on your WooCommerce store, you have a variety of plugins available, including free and paid options. We have shown you how to set up dynamic pricing using the free Advanced Dynamic Pricing for WooCommerce plugin, but the other plugins work on roughly the same principles and might meet your needs better depending on the types of pricing rules you have. you want to create.
Best of all, you can still use these plugins even if you are using Elementor WooCommerce Builder to customize the designs of your product pages. As we showed you in the example, WooCommerce’s advanced dynamic pricing works as usual even when using a WooCommerce Builder template (remember – details like the bulk pricing table will appear wherever you add the Add To Cart widget ).
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