How to Set Up WooCommerce Dynamic Pricing

Whether you run an online store or a physical store (or both!), there are a number of ways you can offer a personalized shopping experience to customers using their geolocation. One of them is WooCommerce dynamic pricing or charging different prices for your products.

Dynamic pricing generally refers to discounted prices you may offer to customers. This is because most businesses don’t increase prices as this may not generate any additional sales. Of course, this isn’t true in every case. Cab services, for example, use dynamic pricing to charge higher fares during peak hours and online stores charge higher shipping fees for customers located at distant locations.

Done right, dynamic pricing is a useful strategy that can help you offer select product prices, payment gateways, and shipping methods to customers, enabling you to increase conversions and boost sales. In this post, we’ll go over a step-by-step guide on how to set up WooCommerce dynamic pricing on your store.

Let’s put everything into context before we begin.

Different prices for your online store and physical store

Dynamic pricing is a pricing strategy used by businesses to update the prices of their products on the fly. Product prices can be updated based on a number of factors such as the customers’ geographical location, product demand, or as part of a marketing effort.

For instance, you can display specific products to customers living in the proximity of your retail store and offer them discounted prices. Similar, you can set pricing rules and create block lists based on the customers’ distance.

Here are some scenarios where you might need to consider setting up different prices for your online store and physical store:

  • Offer customers a discount on online purchases. Selling online is more cost-effective than selling through a physical store. By offering discounted prices, you can incentivize customers to make online purchases. This is especially useful during the ongoing COVID-19 pandemic and lockdown situation.
  • To encourage customers to buy more from you. You can offer discounts on specific items or product categories to encourage people to buy more from you. For instance, you can give discounts during the end of season sale on select items at the retail store.
  • Offer customers a discount if they’re close to your physical store. You can attract potential customers to your store. For example, if customers are within 5 kilometers of your restaurant, you can offer a 10% off special deal.

Next, let’s look at how you can charge customers different prices on your online store and physical store.

Distancr: the simplest way to set up WooCommerce dynamic pricing

Distancr is a powerful WordPress pricing plugin that helps you charge product prices based on the customers’ geolocation. This means you can easily update prices, display products, offer shipping methods and payment gateways depending on the geographical location of each customer. It also comes with a number of API integrations that enable you to calculate prices precisely.

With Distancr, you’ll be able to quickly configure locations by entering the geographical information of the city or area you run your business. You can also integrate the plugin with Google Autocomplete to fill in this information.

In addition to this, Distancr’s dynamic pricing feature lets you create pricing rules, helping you automatically modify and set product prices based on the customers’ geolocation. Similarly, its blocklist feature allows you to restrict access to shipping methods, product categories, and payment gateways. 

How to set up WooCommerce dynamic pricing using Distancr

Here, we’ll show you step-by-step how to implement WooCommerce dynamic pricing using  Distancr. You can use it to modify product prices based on the geolocation of your customers. For this tutorial, you’ll need your WordPress website, the WooCommerce plugin, and the Distancr plugin.

Step #1: Install the Distancr plugin and configure settings

The first thing you need to do is get the Distancr plugin and install it on your WordPress website.

Navigate to WooCommerce > Settings > Distancr from your WordPress dashboard and select the Options tab. Here, you can change the Distancr plugin’s basic settings.

Distancr Options tab
  • The Distance Unit dropdown list lets you configure the units for the geo-distance restrictions. The available options include kilometer, miles, and nautical miles.
  • The Choose API dropdown list gives you three different API options for calculating distance, namely maxmind, ipstack, and ipapi.
  • In the API Key textbox, enter the API key given by your geolocation provider.
  • Click on the Check Connection button next to Test Connection to make sure your API key is working correctly.
  • You can enter a Google Maps Key to auto-suggest locations, if you’d like.
  • Click on the Save changes button to continue.

Once you’ve configured the plugin, you’ll need to add locations. Simply head over to WooCommerce > Settings > Distancr from your WordPress dashboard and click the Locations tab.

Click the Add Location button. You can make the following configurations for each location you add:

Distancr Locations tab
  • Unique Name/ID – This textbox lets you enter a name for the location you’d like to add. You’ll be able to select the exact location without entering the coordinates each time.
  • Latitude – Set the latitude coordinates of your desired location.
  • Longitude – Set the longitude coordinates of your desired location.

Repeat the same process until you’ve added all the locations you’d like. After you’re done, click on the Save Locations button to proceed.

Step #2: Set up pricing rules

Head over to WooCommerce > Settings > Distancr from your WordPress dashboard and select the Pricing tab to configure pricing rules.

Click on the Add Rule button to get started. You can make the following configurations for each pricing rule you create:

  • Priority – Here you can set the levels of priority for the pricing rules. The pricing rule with the higher priority will overrule pricing rules of lesser priority.
  • Location – Select a location from the dropdown list.
  • Distance – Set a distance value.
  • Compare – Choose either the less than (<) operator or the greater than (>) operator.
  • Product Category – Choose the product category you want to apply the pricing rule to.
  • Price – This option lets you set a value for adjusting the price.
  • Apply to – Select the price you want to apply the discount to using the dropdown list. The available options include all prices, only regular price, and only sale price.
  • Discount-Type – Select a discount type. The available options include percentage decrease, percentage increase, fixed decrease, fixed increase, and fixed amount.

Repeat these steps to create as many pricing rules as you’d like. Once you’re done, click on the Save Rules button to proceed.

As an example, here’s what your pricing rule may look like if you create a pricing rule to offer a 15% discount on all grocery items for customers who live within a radius of 10 km of San Francisco:

How to Set Up WooCommerce Dynamic Pricing 1

You can also apply pricing rules based on per-product or per-product variation. For this, go to the Edit product screen and open the product you wish to create the pricing rule for.

Distancr pricing per-product

From here, scroll down to the Product data section and select the Distancr tab and enter the pricing rule. When you’re done, click on the Update button to proceed.

BTW: You can also set up your pricing rules on variation level and modify your prices based on each variation of your variable product. Take a look at this:

How to Set Up WooCommerce Dynamic Pricing 2

Now you should be able to set up WooCommerce dynamic pricing pretty easily in your store. Let’s move on to another (optional) topic.

Step #3: Add blocklists (optional)

For most online stores, having the ability to add blocklists is incredibly important. It can help you ensure that you don’t overspend on shipping and give you the option to offer specific payment gateways to customers.

Navigate to WooCommerce > Settings > Distancr from your WordPress dashboard and click on the Blocklist tab. Click the Add Rule button and make the following configurations for each rule you create:

  • Location – Select a location from the dropdown list.
  • Distance – Set a distance value.
  • Compare – Choose either the less than (<) operator or the greater than (>) operator.
  • Block – Here you can select a Blocklist rule. The available options include Products, Payment Gateway, and Shipping Method.
  • Product Category/Payment Gateway/Shipping Method – Depending on the Block option you choose, you can select a product category, payment gateway, and shipping method to block.

Repeat the same process until you’ve created the block list. Finally, click on the Save Rules button to proceed.

As an example, here’s what your block rule will look like if you create a blocklist rule to block all products in the Furniture category for customers who live outside a radius of 100 miles from San Francisco:

Distancr Blocklist tab

Step #4: Testing

If you have activated the testing tool in WooCommerce->Settings->Distancr->Testing you can use the new and easy to use frontend testing tool as long as you are logged-in as an administrator.

How to Set Up WooCommerce Dynamic Pricing 3

Click on the earth icon and a little box will pop up. There you can switch your location (or reset to your real location) in no time and check life how your prices, products, shipping, and payment methods change based on your configured rules – how cool is that?

Conclusion

Dynamic pricing helps you offer a personalized shopping experience to customers using their geolocation data.

Adjusting product prices in WooCommerce on the fly is incredibly easy with the WooCommerce dynamic pricing plugin Distancr. You can use this plugin to easily set and display the product prices based on the customer’s geolocation and offer them select payment gateways and shipping methods. This way, you’ll be able to offer targeted discounts which will in turn help you convert more customers and boost sales.

Ready to implement WooCommerce dynamic pricing in your store? Get Distancr today!