[HOT FAQ] Explain Magento Different Prices For The Same Product In Simple Terms

magento-diffrent-price

[HOT FAQ] Explain Magento Different Prices For The Same Product In Simple Terms

So, the entirety of this article will focus on answering this question:

magento-2-different-price-per-store-view-explain

>>>QUICK ANSWER: Implement Magento different prices for the same product in the store view RIGHT NOW. 

You might find this odd since Magento only allows setting prices at the Global or Website scale. Moreover, even special, or tier prices are only applicable at the Website and Global scope as well. 

However, there are some legitimate reasons why you should try to differentiate prices at the store view level. Moreover, this step can actually grow your turnover immensely without any business optimization. 

Let’s jump right into it.

Why do you want to set Magento different prices for the same products?

Taxes and import duties

One of the central points that influences the costs of products is the distinction in import obligations across nations. 

Brazil, for instance, has an incredibly high import obligation, or tax, of 60%. That explains imported products, for example, vehicles and telephones, are such a significant amount of costlier there.

Numerous items are less expensive in Japan because of lower import assessments and better discount costs. 

tax-expense

Indeed, even nearby expenses have a significant effect. On the off chance that San Francisco has an 8.5% deals duty. Meanwhile, London has 20% Value-Added Tax (VAT), this will fundamentally influence the costs paid by the consumers. 

Side note, we must talk about the contrary between the treatment of deals expense and VAT when discussing fares and imports. 

When sending out a decent, VAT is charged on the product, yet deals charge isn’t. 

However, the shipper addresses deals charge on the full cost of the item. The customer pays VAT just for the worth included by the merchant. 

If you are shipping the product to a nation that doesn’t have VAT from a country that has one in place, the item will be twofold burdened. The sending out government includes VAT while receiving country charges on the overall purchase.

The difference in the cost of distribution

If you’re operating your business across multiple places, chances are you will have different inventories. Therefore, the cost of distribution will vary among these locations.

different-stroke-for-different-folk

That’s why even though you still allow everyone to shop at whatever storeview they want. It’s essential to separate prices for local and non-local customers. 

This way, you can maximize your profit margin by lower your cost of production.

The differences in transaction costs 

Since exchange costs exist and can fluctuate across various markets and geographic districts, prices for a similar decent can likewise shift between business sectors. 

transaction-cost

Where exchange costs, for example, the expenses to locate a fitting exchanging counterparty or costs to arrange and authorize an agreement, are higher.

This surplus leads to the price for a positive attitude will, in general, be higher. Of course, we compare it to different markets with lower exchange costs. 

Supply vs. demand theory

We all know that price is calculated due to its supply and demand. And those criteria also have a local-bias.

supply-vs-demand-theory

If the market is full of similar products, put the price as low as possible to win the competition. That’s a smart move.

However, if customers have a strong urge to buy your product due to its uniqueness, charge a higher price. That’s a logical move.

Therefore, localizing prices due to the characteristics of its market is how you maximize your revenue across the board.

Perceived value

This point shares somewhat similar virtue as the previous one, but it’s more about customer behaviors. Even though the market is saturated, the ultimate factor regarding price is how customers’ valuation of the product itself.

people-perceive-value-differently

Perceived value is the customer’s comparison of the quality or desirability of a product compared to others in a similar niche. To put it merely, French customers might find your backpack more valuable than English customers. Hence, you charge them more. 

Legal restrictions across borders

Legitimate hindrances as capital controls, or on account of wages, migration limitations, can prompt active value differentials as opposed to one cost. 

legal-protection

These will have a comparable impact on transportation and exchange costs. Therefore, more than geographical demand, it’s also political and demographics contributors.

Different strokes for different folks.

The nature of the market structure 

The number of purchasers and merchants can shift between business sectors and advertising focus. The follow up is that position of purchasers and dealers to set costs can fluctuate too. 

market-structure

A dealer who appreciates a severe extent of market power because of characteristic economies of scale in a given market is superb. They may act as an imposing business model value setter and charge a more significant expense. 

This situation can prompt various costs for a similar decent in various markets in any event. For in any case effectively transportable merchandise.

How to set Magento different prices for the same product?

Unfortunately, the default Magento setup doesn’t support this particular action.

>>> INSTANT KNOWLEDGE: 6+ most significant disadvantage of Magento 2 store view

But, with coding and/or the help of an extension, we can make this a reality. 

This is how you do it.

With code (only M1)

First, you need to change the price scope to the Website by going to System > Configuration->Catalog->Catalog->Price.

After that, here is the code for you to use (courtesy of Harsha Sampath)

$client = new SoapClient('http://your-web-site/api/soap/?wsdl'); $API_USER = 'your-api-user'; $API_KEY = 'your-api-key'; $result = $client->call($session, 'catalog_product.update', array('test-product', array('price' => '100'),'your-store-code')); print "<pre>"; print_r($result); print "</pre>";

However, this code only works for Magento 1 – which Adobe is going to drop support for later this year.

That’s why we need a better solution.

With an extension

A Magento 2 different price per store view is much appreciated and widely available for your Magento store regarding this pricing strategy. 

SET UP IN MINUTE: Learn how to set up Magento 2 different price per store view in easy 1-2-3 steps! 

Wrap up

We’ve talked about Magento different prices for the same product in all of its glory: why you want to do it, why it’s the best policy, and how to do it accurately.

Let me know in the comment below your thought about this article or what particular problem that you’re experiencing with your price policy; we love to respond and help you with that!

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