How to Configure Price in Magento

How to Configure Price in Magento

Magento comes with many basic features inside, and pricing options are ones of them. You can use this feature for your promotion, or to set up your price based on your own minimum requirements.
Pricing in Magento may become complex for some people, but when you know your way around, you can take full advantage from it.
Prices tab is used to manage the pricing structure for each product in the catalog. There are several fields in the price tab :

Price
This is the retail or basic price of your product.
Group Price
This option allows you to set up promotional prices for specific customer groups.
Special Price
If you want to give a special price to your customers, you can enter the discounted price here and set up the date range to establish from and until when the special price would be given. When you set the special price active, the normal retail price will be crossed out and become inactive for a while.
Special Price From Date
This is to set the beginning date for the special price time range.
Special Price To Date
Setting up the end date for your special price.
Tier Price
This option can be used to set up quantity discount. This discount can be set up for specific customer groups.
Apply MAP
When you set this option to yes, it will hide the actual product’s price from the customers.
Display Actual Price
You can choose whether you want to let your customers see the actual price of your product or not.
Manufacturer’s Suggested Retail Price
You can fill in the manufacturer’s suggested retail price of your product here.
Tax Class
Tax that associated with the products.
There are several kinds of pricing options in Magento. Each of them has their own function and purpose. They are :
 
1.Simple price
This is the most basic form of price. In order to create a simple price and other kinds of price, you need to create a new product first. In Admin Panel, go to Catalog -> Manage Products.

Click the “Add Product” button. Let’s try to make a simple product.


After you fill in Name, Description, Short Description, SKU, Weight, Status, and Visibility, go to Price on the left side tab.

Price and tax class are the only ones you need to pay attention to when you want to make a simple price for your product. For example, you want to sell a new T-shirt in your online store. Let’s say that T-shirt regular price is $5 each. So, you need to write down $5 in the price field.

 
2. Group pricing
In Magento, you are able to set up prices for specific groups as well. Those customer groups are :

• NOT LOGGED IN
• General
• Wholesale
• VIP member
• Private sales member

Those are the default customer groups. You can add your own customized group if you want.
You can specify the price for each customer’s group. For example, you want to give a discount for customers who buy your T-shirt in large quantity (wholesale customers). The basic price is $160, but wholesale customers can buy it for $145.

When you complete all the necessary information, click the “Save” button.
 
3. Special Price
If you want to sell special price to a particular product but just for a few days or weeks, then this option will be very useful for you. With this option, you do not need to change the price back to its regular value manually.
When you add a special price for your product, the regular price will be crossed out both in Catalog and Product Pages. The special price will appear in bold red.
To create a special price, fill in the “Special Price” field and set the date for “Special Price From Date” and “Special Price To Date”. Click “Save” button when you finished.

 
4. Tier Price
This price option allows you to offer a quantity discount from the product detail pages and catalog list. You can apply this discount for a specific customer group or store view.
In the catalog page, the tiered price will appear as both “regular price” and “special price”. As you can see in the image, tiered price includes the word “As low as”, and the lowest price will follow after.

In the product list page, your calculated quantity discount will be accompanied by a message :

Buy 2 for $__._ each and save _%

The price which appears in the front store is the maximum and minimum price. You can add as much tier prices as you want. For example, you can set up tier price for quantity 5 and more, and another tier price for quantity 10 or more. When customers buy 5 or more but less than 10 (for one particular product), the customers will get the tier price for 5 items. However, when the customers add the 10th item, the tier price for 10 quantity will become active and replace the tier price for 5 quantity.
In order to display tier price in your online store, do the following :

• Select “Price” on the Product Information tab at the left side.

• In the tier price section, click the “Add Tier” button.
• If you have more than one websites, select the website to which the tier pricing applies in the “Website” field.
• In the “Customer Group” field, select the group for whom the tier pricing is available. If you want to apply tier price for multiple groups, but not for all groups, then you need to create multiple tiers with the same price information and quantity with different customer group for each tier price.
• Enter the quantity that must be ordered by the customers in order to get the discounted tier price in the “Qty” field.
• Insert the adjusted price for the item in the “Price” field.

• When you finished fill in all the information, click the “Save” button.
• If the system asks you to update the cache and indexes, just follow the instructions in the message at the top of your workspace.

 
5. Minimum Advertised Price
In some cases, merchants are not allowed to display price which is lower than the Manufacturer’s Suggested Retail Price (MSRP). This is where MAP (Magento’s Minimum Advertised Price) can benefit you. This feature gives you the ability to offer a better price to your customers while at the same time remain in compliance with the manufacturer’s suggested retail price.
Suggested retail prices usually different from manufacturer to manufacturer. You can hide your actual price on the page where it is not allowed to show a lower price than the Manufacturer’s suggested retail price.

If you set to allow configuration product in the storefront, with prices that depend on the selected option, like simple product with its own SKUs or customized option, then this logic will be implemented :

• MAP will be applied as the main price. The other price options, associated product or bundle will appear normally.
• If your product does not have the main price, and if its deprived from associated product price, then the MAP for an associated product will be applied.
• If product cart page has Manufacturer’s suggested retail price , the price will not be crossed out.

 
For another kind of price setting, this is the logic that will be used a :

• If a special price is set, it will be considered as the actual price for MAP.
• If tier pricing is set, it will appear based on the Display Actual Price setting.

 
MAP will be applied differently based on the product types :

• For simple and virtual product, the actual price will not appear on catalog and product pages only included according to with the Display Actual Price setting. Custom price will appear normally.
• For Grouped product, the price which is associated with simple product will not appear in the catalog and product pages, only included based on the Display Actual Price setting.
• For configurable product, actual price will not appear, included based on the Display Actual Price setting. option price will appear normally.
• For the bundle with fixed price, actual price will not appear, only included based on the Display Actual Price setting. Price for bundle item will appear normally. (MAP is not available for bundle with dynamic price).
• For downloadable product, it is the same as the others. The price which is associated with each download link will appear normally.

 
In order to apply MAP for your product, do the following :

• Select “Prices” in the Product Information tab.
• Type the MAP price in the price field and choose the tax class.
• Select “Yes” for Apply MAP drop-down option.
• For the Display Actual Price drop-down option, select where you want to display the actual price.

• Fill in the “Manufacturer’s Suggested Retail Price” field (In this case usually the suggested retail price will be higher than the basic price you want to offer to the customers).
• When complete, click the “Save” button.

 
This is how your product will appear in the catalog and product pages.


I set the MAP price to appear in the cart.

 
Those are several pricing options that available in Magento. You can use them based on your own needs.