It seems surprising that some multi-store views shop owners are selling the same Magento products at different prices per store view for particular customers from different countries. Recent research by the National Consumers League, however, reported some examples such as Walgreens, Rite Aid in which they all charged different prices for the same Magento product.
So what makes this strange thing happen? Why do some eCommerce retailers, especially Magento shop owners, may need to set local pricing?
There are several reasons different prices of Magento multiple store views exist across different areas of the economy:
Differences in transportation costs
Transportation costs include gasoline prices and transportation depreciation. Some states and regions within are closer to pipelines and refineries, resulting in a lower cost of gasoline. The distance among stores can partly make up the prices of products because of different logistics costs.
The differences in logistics costs and local gasoline prices cause Magento shop owners to set different prices for the same products in different areas to ensure gaining the stable profit. This is fundamentally important for online shop owners who are using a cost-based pricing strategy.
Variations in demand and supply
Greatly demanding varies even from countries or areas. The demand is variable for being influenced by different religions, seasons, cultures and so on. Just the same as demand, supply cost is also one of the critical factors for online shop owners.
Thus, Magento online businessman considers the demand and supply of local areas carefully to set special prices for each store view.
The variable local taxes
Some countries have higher sales taxes on Magento products than others, which leads to different prices for the same product.
The degree of competition in the local area
More competition between eCommerce businesses typically creates lower prices and vice versa. Generally, larger markets contain more competition because of the more significant number of eCommerce firms. The result of this competition is often lower prices than other locations.
The several reasons bring about the different prices per store views. Some are attributed to differences in the costs of production and others to differences in transportation costs. Some are due to variations and local tax rates while still, other price differences are account for the degree of regulation in the market where the product is sold.
The local pricing strategy guarantees the sustainable profits for eCommerce Magento web-based shop owners. It is needed for the Magento shop owners who have Magento multi-store different prices need to install a multi-store pricing extension, which enables them to set up different prices per local store views.
In addition to Magento 1 version, Magento 2 version for Multiple Store View Pricing was also released with almost the same functions that can optimize your own pricing policy per store view.