Pricing for Custom Products
Pricing for Custom Products
The formula ingredients you enter and their quantities will be used to determine the formula proportions only. For example, you can enter custom product ingredients and their values add up to 100, but you can allow a user to order more or less than 100 quantity based on the pricing structure of the product.
There are 3 ways to price custom products and determine total amounts.
1. Fixed Amount & Fixed Price
2. Fixed Amount & Variable Pricing
3. Variable Amount & Variable Pricing
Fixed Amount & Fixed Price
With this method you are defining the quantities a user can order, and also determining exactly how much they will pay for the quantity you set. (even if you are a solo practitioner)
An Example would be a quantity of 200 for $20.00 or 150 for $17.50. With this example, a user can only order 200 or 150, and they will pay a set amount. The user cannot order 250 or 500, only the amounts set by admin. You can however, add as many different quantities as you want. If the formula you enter in product ingredients adds up to 100, but the user is ordering 200, the values will be doubled.
Fixed Amount & Variable Pricing
With this method, you are defining the quantites a user can enter, but the selling price is determined by the amount of each ingredient, which is multiplied by the ingredient selling price. This is often the "Default selling price" per unit, but if you have setup pricing tiers, it will use the tier price, and not the default selling price. There could be 10 ingredients in your custom product, and each ingredient value may be different, and will change based on the quantity being ordered. You are setting the quantity, but not setting the price directly.
Variable Amount & Variable Pricing
With this method, you are not defining the quantity, but you are letting the user pick any amount they want to order. You can however set a minimum and maximum amount. If the user tries to enter an amount above or below the min/max, they will receive a warning message telling them they need to enter a value between X and Y. The pricing for this scenario also relies on the unit selling price of the ingredient, which is multiplied by its total amount.
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View Pricing
With each scenario, you can click on the "View Pricing" button to see a breakdown of each ingredient, its selling price, and the total price to be charged to the end user. This is a way for us to ensure all the values are aligning and the correct amount is being charged, based on the scenario. The pricing breakdown also displays your total gross profit and margins for each ingredient and the entire product. With the third scenario ( variable amount & variable pricing) you can enter any value into the box, and it will give you a breakdown of each herbs quantity, cost of goods, selling price, gross profit and gross margin.
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