Cost is a major factor in any purchasing decision, for obvious reasons. As such, it’s a battleground for many WooCommerce store owners. If you choose the right pricing model for your store – or even on a product-by-product basis – you can nip under a competitor and win their business.
One way to do this is with a WordPress plugin. Be aware that you’ll have a lot of planning to do before you unleash your pricing model on the public. However, once you wrap up the planning phase, the implementation should be straightforward.
For this tutorial, we’ll look at product pricing models, along with information on how to choose the right one. From there, we’ll show you how you can implement it in part with a popular WordPress plugin.
Why your product’s pricing is more important than you realize
The price of a product is not only a marker for how much you’ll earn from a sale. It has lots of other indicators and touchpoints:
- The greater the cost, the more exclusive an item is (in general).
- The price of an item could indicate your labor. For instance, handcrafted items often cost more.
- Your competition will have some role to play when it comes to pricing. This is because you’ll need to offer a competitive and relative price, or you stand to lose customers.
There’s plenty more facets when it comes to product pricing, which is why you need to think about pricing models for your WooCommerce store. We’ll discuss this next.
Pricing models: the options at your disposal
In short, a pricing model is simply the way you’ll charge your customers for products and services. There are a number of models to consider – here’s a non-exhaustive list:
- Cost-plus pricing. This is almost the standard approach for retail services. You’ll add up your costs, then tack on a percentage of profit.
- Value-based pricing. Here, you’ll use the customer’s perceived value of your products and services to set your pricing. This means each customer might have a unique price for the same item.
- Fixed pricing. This model is good for services where a client pays a set price, but you take as long as you need to do the work.
- Time-based pricing. Here, you’ll charge by a set timeframe. Hourly rates are common, but day rates also exist.
There are many more pricing models, but these are the most common ones you’ll find. Even so, choosing the right one for you does require some thought.
How to choose the right pricing model
It’s important to consider a few different factors when you want to choose a pricing model. Research is key, especially when you look at what your competitors choose to do.
Regardless, you can also look inward for valuable insights, by asking yourself questions about your business:
- What do your customers expect when it comes to pricing? For instance, are they used to paying based on a cost-plus agreement, or an hourly rate? It’s also worth asking whether your customer base can tolerate change in your pricing model, and by how much.
- What standing do your products and services currently have? Here, think about how you position your offerings, which customers come to buy from you, and what you’d like to realistically attract in the future.
- Are your production and labor costs high or low? This will obviously dictate not only the pricing model you choose, but also the final cost. As such, it’s an important question to ask yourself.
It’s also important to test any potential pricing model, because you’ll want to know it works and is suitable before you push it across your site. Our advice is to choose a product or two as a test case. You can offer the new pricing model there, and if it gets good feedback from your customers, you can begin to roll it out across your lines.
What the Advanced Product Fields for WooCommerce plugin can provide you with
Advanced Product Fields for WooCommerce is not your first typical choice to implement a pricing model. However, it can not only help you add extra fields to your product pages, but also to add optional extras and complex pricing to your cart.
The ecosystem of the plugin means each option you add has the ability to change the final price, which the customer will see at checkout. Regardless of your pricing structure, Advanced Product Fields for WooCommerce can support it.
What’s more, you can add extra fees to your products based on the pricing model you want to go with. If you use formulas or lookup tables to price your products, the Extended premium plan includes the Lookup Table add-on. This lets you take a spreadsheet’s pricing data and upload it to WordPress.
How to add a pricing model to your store using Advanced Product Fields for WooCommerce
While we can’t implement your specific pricing model for you, we can show you where to find the options you’ll need. However, before we go over this, you’ll want to have some prerequisites in place:
- If you haven’t purchased Advanced Product Fields for WooCommerce, you’ll need to do that.
- You’ll also want to install and activate the plugin before you start.
- At least one of your products will need to have a product field group, along with relevant options. We show you how to do this in our article on setting up extra product options in WooCommerce.
From here, you can look to implement your pricing. In some cases, such as taking donations or using a ‘name your price’ strategy, you can set a product field group Type to Number. The options here will let you set the field as required, enable you to set a minimum and maximum value, and let you adjust the pricing based on a number of factors:
There are a number of other Types that let you implement pricing options too:
- Select list
- Radio buttons
- Text swatches
- Multi-select text swatches
If you select any of these, you’ll be able to add different pricing within the Options section:
The pricing option you choose will be a key decision. We have a full list of what the different options mean in our knowledge base. You might also want to use other features of Advanced Product Fields for WooCommerce.
For example, conditional logic can help you display only the relevant options to your customers. What’s more, you might want to add discount options that lower the price. For food establishments, dietary restrictions might mean you reduce the price if you leave out dairy, for example – there are many other variants to consider.
Product pricing is so vital, you’ll want to think long and hard about which pricing model to implement. This involves lots of research, considering your customer base, and taking baby steps when it comes to implementation. Some pricing models benefit from the Advanced Product Fields for WooCommerce plugin.
While this plugin is not a typical way to implement a pricing model, it enables you to adjust the final price based on the options you set with the plugin. What’s more, you can implement any complex pricing model using formulas or lookup tables – the plugin supports both strategies.
If you’re ready to add an optimal pricing model to your store, take a look at Advanced Product Fields for WooCommerce today!