The eternal question of a business is how to optimize profitability. Well, one answer to such a point is to raise revenue. Yet pricing in Magento 2 is not a piece of cake as it must tackle the targeted customers and attract their attention. Just read on to get your secrets to optimum pricing power with the top Magento 2 Pricing extensions.
Trending Advanced Pricing Strategies for Magento 2
Market Research is a vital part of each business decision, and setting prices is no exception. To find the best pricing solution, let’s take a look at the trendy strategies that help boost your profitability and customer satisfaction.
1. Personalized Pricing
It tops the list of B2B pricing strategies and is also called Dynamic Pricing. Price Segmentation per customer group has been around for so long; the most prominent example is price negotiation through quotation.
Magento default already offers quite a few options for setting different prices per customer group like advanced pricing, catalog price rule, and cart price rule. To customize further, we can use Magento 2 customer-specific pricing extensions to fix the prices per individual customer and manage the different catalogs with conditions.
- Pros: Responsive pricing increases customer satisfaction and maximizes profits.
- Cons: Risks of price wars and customers get frustrated at continually changing prices.
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2. Charm Pricing
$99.99, €9.9 are such typical prices we see every day. The odd numbers create a psychological effect on the customers by appearing to be comparatively lower than the rounded price.
People nowadays are price-sensitive, so a single cent slashed off the price makes definite sense in a large-quantity order. In the book Priceless, William Poundstone finds out that odd-even pricing increases sales by approximately 24% compared to “rounded” price points.
- Pros: Gives customers a perception that they are getting a deal.
- Cons: It creates a sense of deception and does not guarantee sales.
3. Premium Pricing
Consumers are now cost-conscious but also quality-oriented. Low prices may attract customer attention but not enough to convince them to make a purchase. Conversely, people assume high quality from expensive products.
The context plays a vital role in customers’ buying decisions. However, it’s your unique selling point that allows you to set high prices while bringing necessary values to users.
- Pros: Customers perceive your products as premium.
- Cons: Difficult to implement when customers are price sensitive and have many choices (You offer limited differentiated value).
4. Bundle Pricing
Bundling products help increase sales in two ways: reducing customers’ time for choosing a product combination and offering a lower price for the set of products.
Bundle Pricing helps diversify the buying options and has been around for so long. The products in a bundle go together, so instead of picking every single product choice, customers can now grab a ready-made batch at an excellent price.
- Pros: Offer an allegedly higher value at a lower cost, reduce marketing costs, and sell the individual products at a higher price than their prices in the bundle.
- Cons: You get lower profits from bundled products, and customers may leave if they feel forced to buy a bundle.
Default Tools for Pricing in Magento 2 Community
As you may already know, Magento 2 default caters to a lot of functions for configuring prices. Now let’s dive into the pricing tools available for Magento 2 Open Source.
1. Types of Price
Besides the regular price, Magento also offers advanced pricing options on each product page for further customization.
- Special Price: alternative lower price for a specific time. Interestingly, when Magento shows the special price along with the strikethrough price, the product looks way more appealing.
- Group Price: also called Tier Price, yet it can mean both. Magento allows setting unlimited special discounts per customer group for each product. The more customers buy, the greater discount they get.
- Manufacturer’s Suggested Retail Price: A way for recording the price suggested by the manufacturer. Meanwhile, we could use this field to list the cost we spent on purchasing each product unit.
2. Price Rules
Catalog Price Rule
The catalog price rules help with setting price discounts based on conditions. We can configure rules per:
- Product Attribute
- Customer Group
Cart Price Rule
Meanwhile, the cart rule is for setting discounts for products in a shopping cart. The conditions include:
- Cart Attribute
- Cart Item Attribute
- Product Attribute, Customer Group, Website
Especially, coupon codes in cart price rules allow generating a code which you can use for promotional campaigns or to your valued customers.
>> EXPLORE All Magento 2 Pricing aspects for your successful business in a single tutorial!
The Trending Magento 2 Pricing Extensions
Equivalent to the above pricing trends, here comes the trendy Magento 2 pricing extensions.
B2B Customer Pricing
Magento default already supports setting up special prices per customer group for each product, but it is quite manual work! Also, there are limited pricing features for B2B websites, that’s why we come up with these three extensions.
1. Magento 2 Price per Customer (BSS)
This Magento 2 Customer Specific Pricing extension is for price segmentation. You can set a custom price for each product tailored to a specific customer or customer group. All the product prices can be assigned automatically through conditions and managed efficiently with rules.
- Work ideally for B2B website with multiple customer groups, each with a unique selling point
- Personalize price per individual customer/ customer group with the least manual works required
- Replace the original price entirely with a custom price
- Mass-assign rules with product/ customer conditions
- Quick advanced pricing setup for multiple products within each rule
2. Magento 2 Hide Price/ Call for Price (BSS)
The extension name tells all its secrets: hiding price and asking customers to interact to get price. The required action might be direct contact, login, or fill in a customized form. It works just right for B2B websites where price negotiation is such a daily activity.
- Hide price per customer group and product category
- Replace the “Add to Cart” button with a custom text or link to the “Call for Price” form
- Manage all price requests in one single grid
- Send email to admin upon new price request and customers upon price quotes
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3. Magento 2 Customer Group Prices (MageWorx)
A Magento 2 Customer Group Pricing extension for diversifying price strategies! The module allows setting special product prices per customer group and displaying the price precisely on search results.
- Allow importing/ exporting product prices via a CSV file
- Support managing the group prices via REST API
- Able to migrate price data from Magento 1
Store View Pricing
As you know, configuration scope means a big deal in Magento and default Magento offers three currency settings to support multi-currency stores:
- Base Currency for setting product prices and processing transactions
- Default Display Currency for displaying prices on each store view
- Allowed Currencies for choosing the base & display currencies
However, the three settings do not yet support setting up different currencies per store view for checkout, that’s why we need these two extensions.
4. Magento 2 Multiple Store View Pricing (BSS)
Target different customers with different prices based on their locations! This Magento 2 Pricing extension supports setting up different prices for each product and also configuring base currency per store view.
- Diversify prices of all kinds: regular, special, tier, all per store view
- Set up base currency per store view
- Customers can checkout with the store view’s base currency
5. Magento 2 Checkout with Display Currency (BSS)
Another Magento 2 Advanced Pricing solution for displaying product prices on the frontend! The module improves customer experience by allowing them to checkout with the store’s display currency instead of the base currency of the whole website.
- Easy checkout with display currency of the store view
- Work with all payment methods
- Add the display currency to sales documents and emails
Other Pricing Tools
These are two additional extensions that support further price customization in Magento 2: One for setting up tier price and the other one for building price formulas.
6. Tier Price for Magento 2 (Mageplaza)
The extension enhances customer satisfaction through an automated pricing table and sounding notice of tier prices. You can target the tier prices of multiple products to customer groups with minimum manual work as it also supports setting Magento 2 Customer Group Pricing.
- A clear layout of tier pricing table at frontend
- Allow setting special tier prices to specific customers
- Manage tier price rules effectively with tier groups
7. Product Price Formula for Magento 2 (Itoris)
This Magento 2 Advanced Pricing module works exceptionally well for calculating the price based on customers’ choices at the frontend. You can tackle any complicated math formula through various conditions, including those related to product attributes, customers, or store views.
- Multiple price formulas per product
- Set price conditions per product options, customer group, and store view etc.
- Can work with math options and custom variables
Pricing in Magento 2 is a big issue, especially on B2B websites. Therefore, we have shortlisted the tools provided by default Magento and the trending pricing strategies. Also, we introduced the top 7 Magento 2 Pricing extensions that meet all the pricing customization needs. We hope you can find the solution for maximum profitability and customer satisfaction.
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