Many popular brands utilize their customers’ needs at the right time to increase revenue. For instance, you might notice the price increases when you book an Uber during busy times, like rush hour or rainy days.
This is where Uber understands its customer demands. More people need a safe ride to their destination during rush hour or rainy hours. Uber raises its prices for people who are willing to pay without a say, and it makes more money than on a typical day.
It is how WooCommerce dynamic pricing works. It involves adjusting prices in real time to match people’s willingness to pay. If done correctly, it can be a smart way to sell more and increase revenue.
As a WooCommerce store owner, you can change product prices based on product demands and customer needs to make more money in a specific time.
In this blog, you’ll learn how to configure WooCommerce dynamic pricing & discounts based on different factors and types to increase your store’s sales.
Note: WooCommerce does not have a default dynamic pricing option, so we will use a plugin to set one up.
Set up dynamic pricing for specific products in WooCommerce easily using Discount Rules Pro and boost sales.
What is WooCommerce Dynamic Pricing?
WooCommerce dynamic pricing, also known as surge pricing or demand pricing, refers to the strategy of adjusting product prices based on certain factors, such as product demand, user roles, time of purchase, or other purchase criteria set by the online store owner.
It helps you offer personalized pricing for specific customers, optimize their pricing strategies, and maximize sales.
Main Factors Influencing Dynamic Discount Pricing
Dynamic pricing mainly relies on the following factors to adjust product prices:
- Product Demand
When product demand is high, prices can be increased to capitalize on customers’ willingness to buy. Alternatively, prices can be decreased to boost sales of low-demand products. - Product Supply
When the stocks are low, prices can be increased to create demand. Also, when stocks are high, prices can be decreased to clear slow-selling inventories. - Time and Date
Product prices can be adjusted based on time of day, day of the week, or seasonal demand fluctuations to better align with customer preferences and boost sales. For example, you can reduce the price of an item near its expiration date to clear it from your inventory. - Customer Segmentation
Dynamic pricing can also be used to target specific customer groups by personalizing prices based on their purchase history, demographics, or shipping location.
For example, Amazon Prime Members may receive additional discounts or benefits compared to regular customers, which is a form of personalized pricing tailored to a specific customer segment. - Quantity Purchased
Customers buying in larger quantities may expect bulk discounts. Dynamic pricing can be implemented to encourage customers to buy more. - Economic Factors
Economic factors such as GDP rate, GST, and inflation also create an impact on dynamic pricing. - First-Time Orders
Dynamic pricing is also applied to first-time orders to motivate new customers to try products and convert them into repeat buyers.
Benefits of Applying Demand Pricing for WooCommerce Stores
Applying dynamic pricing and discounts for WooCommerce stores is a strategic idea to increase sales, but it benefits you in more ways:
- Lowering product prices during the ‘Sale’ period helps customers shop more, and raising prices during high demand can increase sales. This results in more revenue and enhanced customer experience.
- Dynamic pricing in WooCommerce can be used to get rid of old or slow-selling items. Reducing the original price will grab customers’ attention and increase the sales of specific items.
- Flexible pricing based on product quantities helps customers get discounts when they purchase in bulk, which increases sales.
- WooCommerce dynamic pricing and discounts can be a great tactic to surpass competitors and win more customers, as they have the same product price, but you change it for customers.
Set time-based dynamic pricing in WooCommerce using the Discount Rules Pro plugin and increase revenue during high-demand periods.
Types of Dynamic Discounts
WooCommerce dynamic pricing & discounts can be used in different ways to help store owners optimize their sales and revenue.
Here are some common types of dynamic pricing to implement in WooCommerce:
- Tiered or Quantity-based pricing: You can offer discounts based on the quantity of items purchased. For example, $10 each for 1-10 units, $9 each for 11-20 units, and so on.
- Category-based pricing: You can change the price only for products in specific categories. For instance, you can offer 15% off for all electronics or 20% off for all clothing items.
- User role-based pricing: Customer segmentation is essential to understanding customers’ purchase patterns. You can group customers into different groups, such as wholesale dealers, subscribers, or first-time customers, to adjust prices based on their purchases. For example, regular customers might see one price, while wholesale customers or VIP members might see discounted prices.
- Time-based pricing: Prices are adjusted based on the time of purchase. For example, implementing a flash sale discount for a limited time or reducing the price based on low demand. It creates a sense of urgency and makes customers buy items quickly before the offer expires.
- Location-based pricing: You can offer one price to US customers and a different price to Indian or other region customers. You can change prices, including packaging and shipping fees. This can be useful for offering discounts to customers in specific regions or for adjusting prices based on local market conditions.
- Product bundling: Bundle Discounts are applied when customers purchase a set of products together. For example, offering a 25% discount when purchasing a laptop and a laptop bag together.
- Dynamic pricing based on cart total: WooCommerce dynamic pricing & discounts can be applied only when customers purchase for a specific amount. This encourages customers to reach the set threshold, which directly impacts the total order value. For example, offering a 10% discount on orders over $100.
- Dynamic BOGO pricing: You can offer a free or discounted item when customers purchase a specific product at the original cost. This simple “Buy One, Get One” offer is a popular tactic for increasing sales, and it is dynamic as it is not always available. For example, customers receive one free t-shirt when they purchase two or three t-shirts.
- Product-specific pricing: You can change product prices based on demand, seasonality, or inventory levels.
- Conditional pricing rules: You can provide dynamic discounts with specific conditions, such as buying certain products together, reaching a minimum purchase amount, or purchasing during a promotional period.
How to Set Up and Configure WooCommerce Dynamic Pricing & Discounts?
Setting dynamic pricing in WooCommerce for specific products or categories can be effective in boosting sales only if it applies correctly.
WooCommerce lacks dynamic pricing features. However, you can use a dynamic pricing & discount plugin called “Discount Rules for WooCommerce – Pro” to implement dynamic pricing in WooCommerce.
You can check this installation guide to install and activate this plugin to your WordPress – WooCommerce dashboard.
For this advanced dynamic pricing for WooCommerce tutorial, consider selling a range of “Tea Bags with various flavors” on your online store.
Now, let’s discuss the detailed steps to change prices based on different factors to increase the sales of “Tea Bags.”
Scenario 1: Dynamic Pricing for Specific User Roles
Offering dynamic pricing for specific user roles like Wholesalers, Subscribers, or VIP members will help you personalize pricing based on their purchase behavior and enhance loyalty.
Example: Offering an exclusive deal for Wholesale customers – $5 off on all products.
To create dynamic pricing in WooCommerce for specific user roles:
- Go to WooCommerce and select “ Discount Rules”.
- Click the “Add New Rule” button and enter the name for your dynamic pricing offer.
- Now, choose “Discount Type” as “Product Adjustment”.
- Filter “All Products” as we apply storewide discounts.
- In the Discount section, select “Fixed Discount” and set the value “5.”
- In the Rules section, choose “Condition Type” as “User Role” and select the specific user role, “Wholesale Dealer”.
- Save and enable the rule.
$5 off applied to all products only for wholesale customers.
Note: You can also apply this dynamic pricing for specific customers (users) instead of user groups.
Related Read:
How to create customer-specific discounts in WooCommerce?
Scenario 2: Time-Based Demand Pricing in WooCommerce
Dynamic pricing and discounts for WooCommerce can be applied only during specific periods or days. It is one of the best ways to promote holiday sales.
Example: Bulk Discounts- valid from 9:00 AM to 6:00 PM on March 6, 2024. The bulk discount price can be:
- Buy 1-3 Tea Bags: Each $5 Off
- Buy 4-10 Tea Bags: Each $10 Off
- Buy 11 or More: Each $15 Off
To create time-based dynamic pricing in WooCommerce:
- Go to “WooCommerce” -> “Discount Rules” -> “Add New Rule”.
- Choose “Discount Type” as “Bulk Discount.”
- Filter “All Products” as we apply storewide discounts.
- In the Discount section, set the Minimum and Maximum Quantity and choose “Fixed Discount” with value.
- In the Rules section, choose “Condition Type” as “Date and Time” and set the specific period.
- Save the rule.
Now, bulk discounts are applied to products only during the specific date and time.
Related Read:
How to Setup WooCommerce Tiered Pricing?
Scenario 3: Surge Pricing for Specific Products
You can apply dynamic/ surge pricing to specific products based on their demand.
Example: Let’s say the sales of “Jasmine Tea Bag” is lower than expected. So, reducing its original price to $5.
To create dynamic pricing in WooCommerce for specific products:
- Navigate to “WooCommerce” -> “Discount Rules”.
- Add a new rule.
- Choose “Discount Type” as “Product Adjustment”.
- Filter the specific product.
- In the Discount section, select “Fixed Price Per Item” and set the value. Here, the original price of “Jasmine Tea Bags” is $45, so the value is set as “$40” with $5 off.
- Save the rule.
If you want to increase the product price, you can simply navigate to the product page and select the specific product to change its regular and sale price.
Or, you can also bulk edit two or more products to increase or decrease their prices at once.
Note: You can also apply dynamic pricing and discounts for specific categories.
Related Read:
How to create category discounts in WooCommerce?
Scenario 4: Location-Based Dynamic Discount Pricing in WooCommerce
You can offer dynamic pricing for specific locations to increase brand awareness in particular regions or widen your brand in new places.
Example: Offering Bundle discounts on “Peppermint Tea” only for customers from “Morocco” country.
To create dynamic pricing in WooCommerce based on location:
- Open “Discount Rules” under “WooCommerce”.
- Add a new discount rule.
- Choose “Discount Type” as “Bundle Discount”.
- Filter the specific product.
- In the Discount section, set “Quantity” and “Value.” You can have three discount types to select from:
- Fixed price for the set/bundle
- Percentage discount per item
- Fixed discount per item.
- In the “Rules” section, choose “Condition” as “Country” and select the specific location. Save the rule.
The actual price of 3 sets of “Peppermint Tea Bag” is $90, but only $80 is applied to the customer from “Morocco.”
Note: In addition to a dynamic pricing strategy, you can offer free shipping to specific locations in WooCommerce to attract customers from those regions.
Similar to these above scenarios, you can mix and match purchase conditions with specific discount types to offer dynamic pricing to your customers.
Also, you can use WooCommerce dynamic coupons to offer product discounts instead of a direct way. Customers must enter the coupon code at checkout to claim their discounts.
Customize Dynamic Pricing Table in WooCommerce
If you offer bulk discounts on products, you can display a customized pricing table to help customers understand the discounts they get for different product quantities.
To customize the dynamic pricing table,
- Go to “WooCommerce” -> “Discount Rules” -> “Settings” page in the menu.
- Scroll to the “Product” section and enable the “Show discount table” option.
- Click the “Customize discount table” and customize it based on your discount offers.
- Save changes.
- Changes will be reflected on the product pages, and customers can see the customized dynamic pricing table.
Offer conditions or location-based dynamic pricing easily with Discount Rules and increase your sales and revenue.
Conclusion
Offering WooCommerce dynamic pricing is easier than you think. When implemented at the right time, it is a profitable and risk-free strategy. Also, knowing customer needs is essential to personalizing product prices.
This blog provides you with tested and recommended dynamic pricing strategies for quickly increasing your sales.
You can simply utilize the “Discount Rules for WooCommerce -Pro” plugin to create dynamic pricing offers and sell more products.
Also Read:
- 5 Best WooCommerce Dynamic Pricing and Discount Plugins
- How to set up Multiple Prices Per Product in WooCommerce
- How to offer a free gift in WooCommerce?
The best dynamic pricing and discount plugin in WooCommerce is the “Discount Rules for WooCommerce – Pro.” You can download the free version of the plugin to start creating dynamic pricing in a few easy steps.
To change the product price dynamically in WooCommerce, you need a dynamic pricing plugin like “Discount Rules for WooCommerce.”
1. Go to “Discount Rule” -> Click “Add New Rule.”
2. Enter the rule name and select the discount type.
3. You can provide a discount for specific or all products.
4. In the discount section, you can set the discount value based on your sales goal.
5. Save and enable the rule to offer dynamic pricing.
To install the WooCommerce Dynamic Pricing plugin, follow these simple steps:
1. Go to your WordPress Dashboard -> Plugins -> Add new.
2. Search for “Discount Rules for WooCommerce”
3. Install and activate the plugin to use it.
Yes, it is possible to set Bulk Discounts in WooCommerce Dynamic Pricing using a plugin.
Dynamic pricing is a must-try strategy for WooCommerce stores, as it is worth every discount at a specific time. It involves understanding your customers, adjusting prices based on real-time market conditions, and increasing your sales.
Dynamic pricing has both advantages and disadvantages.
Lowering prices on specific products and at specific times can influence customers to buy more while raising product prices on high-demand products can make customers avoid purchasing.
But if it is done correctly (offering it to the right customers with needs), you can easily make profits.
