WooCommerce dynamic pricing

How to set up WooCommerce dynamic pricing rules

Rafay

WooCommerce, out of the box, doesn’t let you set up dynamic discounts. In order to offer discounts to customers based on their selection, you need to set up WooCommerce dynamic pricing rules.

This way, you can encourage customers to buy more from you, boost sales, and build a loyal customer base.

In this article, we’ll explain different discount strategies you can implement. We’ll also show you different ways to set up WooCommerce dynamic pricing rules on your WooCommerce store. Plus, there’s a handy demo site where you can see several examples.

What is WooCommerce dynamic pricing?

WooCommerce dynamic pricing is a way to offer different kinds of discounts on your online store.

You can charge different prices based on the products your customers select or the quantities they select. This means that product prices will be different depending on the customer’s selection. 

Let’s take a look at some examples of dynamic pricing:

  • BOGOF.  BOGOF stands for ‘Buy One Get One Free’ but it can be used for any combination of discounted items accompanying a full-price purchase. For example, if a customer buys a bag of ground coffee, they will get another bag of ground coffee for free. Or you can also choose to give out a free pack of coffee filters to customers who purchase a bag of ground coffee. These are both BOGOF offers.
  • Bulk pricing. Bulk pricing means customers can avail discounts if they buy products in larger quantities from your store. For instance, you can offer a 10% discount if the customer buys 12 units of a product. This way, you motivate customers to buy more from you which increases the average order value.
  • Discounts based on order total. By offering discounts based on the order total on your WooCommerce store, customers are more likely to purchase more than they planned to. For example, you can offer customers a 10% discount when the order total exceeds $50. Your customers will buy more products just so the order value crosses the threshold. Similarly, you can offer a larger discount of 15% if the order total exceeds $75.
  • Increasing prices and adding fees. When you’re low on inventory or have limited stock left, you can increase prices. Customers will have to pay extra if they want the product. Similarly, you can also add Handling charges or Processing fees as additional fees to your products. This can increase the overall price of your product which, in turn, can help you meet costs and increase revenue.

Reasons to have WooCommerce dynamic pricing

Setting WooCommerce dynamic pricing rules can help you execute all sorts of discount strategies. As a result, you can sell more products through your online store.

Before we jump into different ways to set up WooCommerce dynamic pricing, let’s take a look at some reasons why you might want to implement it: 

Reason #1: Sell more products

With WooCommerce dynamic pricing, you can set up pricing rules to incentivize customers to buy from your store instead of competitors. You can also encourage them to buy more products per sale.

This is a great way to attract new customers to your store and, potentially, increase sales.

For example, if you sell laundry detergent, you can offer a discount if customers purchase a pack of six large detergent boxes.

Reason #2: Clear out old inventory

As an online store owner, the last thing you’d want to do is carry old stock. You need to be clearing inventory regularly so that your warehouse space isn’t taken up by old products. More space means that you can order and stock fresh products.

By clearing out old inventory, you can ensure that future investments don’t get affected. For instance, if you had already purchased stock and it didn’t sell, you would need to take out additional finances for making unplanned purchases. Additionally, if you don’t have old inventory sitting at your warehouse, you don’t have to worry about renting out extra warehouse space for new stock. 

Setting up a BOGOF offer is one way to clear out old inventory quickly. For example, when your customers buy a large box of ground coffee, give them a pack of chocolate muffins for free. Similarly, if you sell apparel on your WooCommerce store, you can offer a free t-shirt with an older design if customers buy two pairs of jeans. This can help you clear out old inventory and reduce storage costs.

Reason #3: Offer free gifts

Offering free gifts on your WooCommerce store is a great way to put up attractive marketing campaigns. This can also incentivize customers to buy more from you in order to get the free gift. 

Offering customers free gifts with every purchase can help you attract new customers and increase sales. You can also get your customers to try out new products by handing them out as free gifts.

For example, if your customers buy a dress from you, you can add a face mask to their order as a free gift. 

Check out our tutorial on how to let customers choose a free gift for inspiration and ideas.

Reason #4: Implement a price reduction strategy

If products on your WooCommerce store aren’t selling as well as you’d hope they would, you can implement a price reduction strategy to sell them. You can sell products in larger quantities and make sure your stock gets sold before it’s time to bring in new inventory. 

A price reduction strategy can help your business attract new customers and boost sales. With customers buying larger quantities from you, the average order value will also increase.

For example, if you sell homemade pickles, selling a pack of three pickle jars for $12.99 instead of selling one pickle jar for $6.99 can help you generate more sales. 

WooCommerce dynamic pricing plugin

All the examples of dynamic pricing in this article use the WooCommerce Fees and Discounts plugin. This extends WooCommerce’s standard functionality to give you multiple options for creating dynamic pricing rules.

WooCommerce Fees and Discounts

Create powerful pricing incentives in WooCommerce with dynamic, bulk and role-based price adjustments

Find Out More

Types of WooCommerce dynamic pricing

Here, we’ll take a look at different types of WooCommerce dynamic pricing and help you decide which one you should implement on your WooCommerce store.

Bulk pricing

Bulk pricing is one of the most effective ways of increasing sales and profit on your WooCommerce store. Since cost-effective products appeal to almost everyone, you make sure customers buy more from you so they can qualify for discounts. Customers often end up buying more than they had planned to in the first place if you offer a discount.

Bulk pricing discounts or quantity discounts let you offer customers a better price based on the quantity they order. In simple words, the more they buy, the lower the price per unit they’ll have to pay. 

Bulk pricing discounts are pretty easy to set up. For instance, you can offer your customers a 7% discount if they purchase 10 items or more. 

Additionally, you can also create different discount levels or tiers to cater to customers with different requirements. For example, your first discount tier could offer your customers a 5% discount for buying between 10 to 25 products from your WooCommerce store. You could offer a 15% discount as another discount tier if they buy between 26 to 50 items. 

Related Tutorial
Check out this detailed tutorial to find out more about bulk pricing in WooCommerce

Discounts based on order total

These are discount tiers based on the total value of your customer’s order that are set through a WooCommerce dynamic pricing rule. This means that when customers add products to their cart and their order value exceeds the minimum specified amount, they will receive a discount.

For instance, you can set a 10% discount if the order value reaches above $50. Your customers will qualify for the discount if their total order amount is $50 or over, despite the number of products added to the cart. 

You can encourage customers to buy more from your store by setting up WooCommerce discounts based on the order total. It can help you increase customer retention and gain brand-loyal customers. Additionally, offering discounts based on the order total is one of the best ways to increase the average order value and boost sales on your WooCommerce store. 

Knowing when to offer discounts on the order total is important. It makes sense to offer discounts on the order total if you’re offering store-wide discounts. For example, you can offer discounts on order total during clearance sales. This can help you clear out old inventory quickly.

BOGOF

BOGOF is a popular dynamic pricing strategy that can help you increase sales on your WooCommerce store. Depending on the types of products you sell, you can set up different types of BOGOF offers.

For instance, if you sell apparel on your online store, you could offer one free cap when a customer purchases a cap. Similarly, you can give out a different product when your customer purchases a product from your store. For example, you could offer a free cap with every two t-shirts purchased from your WooCommerce store.

Additionally, BOGOF offers can also be used to offer the second product at a discounted rate. This means that if your customers decide to buy a jacket, they will receive a 25% discount on wool caps on your WooCommerce store.

One of the main reasons for setting up BOGOF offers is to incentivize customers to buy more from you. By offering discounts with each purchase, you motivate customers to buy more from you. 

You can also use BOGOF offers on your WooCommerce store to give free gifts to your customers. It’s a great way to get rid of products that aren’t selling well on your online store or give out new products you want to promote.

Related Tutorial
Here’s a dedicated tutorial on creating a buy one get one free offer in WooCommerce

WooCommerce buy one get one free

Discount tiers

You can set up discount tiers on your WooCommerce store where customers can get discounts based on how many unit products they purchase from you.

For instance, you can offer a lower price per product once your customers meet the minimum product quantity threshold. And if customers exceed the amount specified in the first discount tier, they’ll move on to the next one which offers them a larger discount. Let’s say if the first discount tier is set at 1-20 units, you could set the next discount tier to 21-50 units.

For example, you could sell 1-20 units for $20 each. This would be the first discount tier. Customers who want to purchase more than 20 units will get a better price per unit at $18 each. This would be the next discount tied which starts at 21 units and ends at 50 units. Similarly, you can set multiple discount tiers that will offer your customer an even better per-unit price if they decide to buy more product units from your WooCommerce store.

If you sell SaaS products and subscriptions on your WooCommerce store, choosing to offer discount tiers might be a good idea. For example, you could offer data plans on discounted tiers such as ’10GB for $40 per month’ and ’15GB for $50 per month’.

Similarly, if you sell wholesale goods, you can use discount tiers to sell to both retail and wholesale customers. For example, you could offer a 15% discount if a customer purchases at least 48 units.

Related Tutorial
This article will tell you everything you need to know about tiered pricing discounts in WooCommerce

WooCommerce tiered pricing using the WooCommerce Fees and Discounts plugin

4 ways to set up WooCommerce dynamic pricing rules

Here, we’ll show you four different ways you can set up WooCommerce dynamic pricing rules on your online store. 

#1: Bulk pricing

Bulk pricing discounts are percentage or fixed discounts based on the number of products being purchased. There are three different bulk pricing variations you can use:

Discounts on specific products

To set up a bulk pricing discount, navigate to WooCommerce > Settings > Fees and Discounts and add a new rule.

Bulk pricing discount

Configure the dynamic pricing rules as follows:

  1. Offer type: ‘Bulk Pricing’
  2. Applies to: ‘Specific products’ – so we can specify the exact product that the offer applies to
  3. Tiers – you can enter one or more tiers to specify how our bulk pricing discounts will be applied. In our example above, we’ve got two tiers – one for quantities between 10 and 20, and one for quantities between 21 and 50. 

Here’s how this looks on the front-end of your WooCommerce store:

Bulk pricing discount preview

You can see a demo product for this here.

For more information, you can check out this tutorial for setting up WooCommerce bulk discounts.

Discounts on specific product categories

You can create a bulk discount for products in specific categories. In this example, we’ll set up bulk discounts for all products in the ‘Summer Stock’ category.

Bulk pricing category discount

These settings are almost similar to the bulk pricing rule above, except:

  • In ‘Applies to’, choose ‘Specific categories’ – this will specify which products that the offer applies to. 
  • Then in ‘Buy categories’, enter the category or categories that the rule applies to. 

Now all products in the specified WooCommerce categories will be included in your discounting strategy. Here’s how this will look:

WooCommerce dynamic pricing preview

You can check out example products here.

Discounts on all products

Similar to the steps mentioned above, you can offer a discount on all products in your WooCommerce store. 

Bulk pricing for all products

These settings are the same as the bulk pricing rules mentioned above, except for:

  • In ‘Applies to’, choose ‘All items’ – this will apply the bulk pricing discount to all of your products in your WooCommerce store.

#2: Role-based dynamic pricing

You can also choose to set up role-based dynamic pricing in WooCommerce. This way, you can charge different prices for the same products depending on the customer’s user role. 

Here’s how you can do this in WooCommerce:

Firstly, navigate to WooCommerce > Settings > Fees and Discounts and check the ‘Enable User Role Pricing’ option.

Role-based pricing

At this, you can either set global role-based discounts that will apply to all products or you can set discounts per product.

Setting global role based dynamic prices

To set global role-based dynamic pricing, click on the ‘User Role Pricing’ menu item. You’ll see a list of all roles with the option to set an adjustment and amount against each one.

So if you want to grant users with the role of ‘Customer’ a 10% discount on all products, you can just enter the details against the ‘Customer’ role.

Setting product specific role based dynamic prices

If you prefer to set discounts at product level:

  1. Navigate to Products > All Products and select the product you want to edit. 
  2. Click on the ‘Edit’ button to open the Edit Product page.
  3. Click on the ‘User Roles’ tab in the ‘Product data’ section. 

In the ‘Adjustment’ row, select ‘Percentage Discount’ and in the ‘Amount’ row, enter the amount of discount.

WooCommerce dynamic pricing for individual products

Setting specific role-based prices per product

Finally, if you don’t want to apply universal discounts or fees to products for different user roles, you can enter different prices per product for certain roles.

To select which roles should be enabled for role-based pricing, go to WooCommerce > Settings > Fees and Discounts > User Role Pricing and enter the roles in the ‘Role Price Fields’ setting. You can enter as many roles as you like here.

This will create a separate price field for each selected role.

Check out our article on WooCommerce user role pricing for more information.

#3: BOGOF

We can set up a BOGOF offer in WooCommerce using WooCommerce dynamic pricing rules. Navigate to WooCommerce > Settings > Fees and Discounts and add a new rule.

BOGOF rule

Configure the pricing rules as follows:

  1. Offer type: ‘Buy X Get X’
  2. Applies to: ‘Specific products’ – so we can specify the exact product that the offer applies to.
  3. Buy: how many products the customers need to buy to qualify for the BOGOF offer
  4. Get: how many products the customer will receive at the adjusted rate once they qualify.
  5. Adjustment type: ‘Percentage Discount’ – so we can calculate the offer as a percentage of the product price.
  6. Amount: ‘100’ – so we’ll reduce the price by 100%
  7. Buy product – this is a list of products that the offer applies to.

Here’s how this will look on the front end:

BOGOF preview

And here’s how it’ll look in the cart:

BOGOF cart preview

Buy one product and get a different product free

You can also offer a different product for free for buying a product. To set this up in WooCommerce, navigate to WooCommerce > Settings > Fees and Discounts, and add a new rule.

Configure it as follows:

BOGOF different products
  1. Offer type: ‘Buy X Get Y’.
  2. Label: optional text to add under the price label on the product.
  3. Applies to: ‘Specific products’ – so we can specify the exact products that the offer applies to.
  4. Buy: how many products the customer needs to buy to qualify for the offer
  5. Get: how many products the customer will receive at the adjusted rate once they qualify.
  6. Max Items: the maximum number of items the customer can receive for free.
  7. Adjustment type: ‘Percentage Discount’ – here we’ll adjust the price of the free item 100% (to make it free).
  8. Amount: ‘100’ – we’ll reduce the price by 100%.
  9. Buy products – this is a list of products that the offer applies to.
  10. Get products – this is the list of products that will have their price adjusted if the customer purchases a product from the ‘Buy products’ list.

Here’s how this works on the front-end of your WooCommerce store:

BOGOF different product preview

Here’s a demo BOGOF product.

Buy one product and get a different product discounted

You can create an offer that gives customers a second product at a discounted rate. To do this in WooCommerce, head over to WooCommerce > Settings > Fees and Discounts, and add a new rule similar to this:

Set the dynamic pricing rule like this:

BOGOF discounted product
  1. Offer type: ‘Buy X Get Y’.
  2. Label: optional text to add under the price label on the product.
  3. Applies to: ‘Specific products’ – so we can specify the exact products that the offer applies to.
  4. Count: ‘Product’ – we count by products.
  5. Buy: how many products the customer needs to buy to qualify for the offer.
  6. Get: how many products the customer will receive at the adjusted rate once they qualify.
  7. Adjustment type: ‘Fixed Discount’ – so we’ll adjust the price by a fixed amount.
  8. Amount: ’5’ – we’ll reduce the price by 5.
  9. Buy products – this is a list of products that the offer applies to.
  10. Get products – this is the list of products that will have their price adjusted if the customer purchases a product from the ‘Buy products’ list.

Here’s how this looks in the cart:

BOGOF discounted product preview

#4: Discounts by order total

Offering discounts by order total is a great way to incentivize customers to buy more from you. Navigate to WooCommerce > Settings > Fees and Discounts, and add a new rule similar to this:

Discount order total

Here’s how you can set up the WooCommerce dynamic pricing rule:

  1. Offer type: ‘Order Total’
  2. Label: optional text to add under the price label on the product.
  3. Min total: ‘1’- you’d want to set this to 1 to offer a discount on the order total, regardless of how many items in the cart.
  4. Adjustment type: ‘Percentage Discount’
  5. Amount: ‘5’ – we will offer a 5% discount on the order total.

Here’s what it will look like in the cart:

Discount on order total

Conclusion

The WooCommerce Fees and Discounts plugin lets you set up WooCommerce dynamic pricing rules on your online store. You can implement one or more discounting strategies to attract new customers to your store, boost your average order value, and grow your bottom line.

Ready to start setting up WooCommerce dynamic pricing rules on your store? Get the WooCommerce Fees and Discounts plugin today!

WooCommerce Fees and Discounts

Create powerful pricing incentives in WooCommerce with dynamic, bulk and role-based price adjustments

Find Out More

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