In this article, we are going to discuss everything there is to know about Magento price per unit, including its benefits and how to configure it.
What is Magento 2 Price Per Unit?
The price per unit is simply the price of a single unit of product or service. For example, a store is offering 100 T-shirts for $500. It means that the price per unit is:
$500 ÷ 100=$5
When it comes to services, most providers charge by the hour. In that case, the price per unit (per hour) is calculated by dividing the total cost by the total hours. For example, a cleaning company charges $200 for 8 hours work. Thus, the price per unit (per hour) is:
$200 ÷ 8=$25
Importance of Magento 2 Price Per Unit
There are several reasons you should consider setting up the Magento price per unit feature, including:
Customer Convenience
Users can easily compare the price per unit offered by different stores to ascertain which store is offering the best value for money. By offering this feature, you can boost chances of successful conversion and benefit from enhanced engagement.
Pricing Strategy
Determining the right price per unit is important from the store owner’s perspective. It helps them determine the break-even point for every product. It ensures that the cost per unit is covered, thereby protecting the business against a loss.
Cost Analysis
As a store owner, you may have multiple vendors. In case you have a single vendor, it is always wise to explore new options. After all, the entire purpose of running a business is to generate wealth. Calculating the price per unit allows you to compare prices across all vendors. Thus, you can choose a vendor that offers the least priced product, thereby maximising your profitability.
Factors Affecting the Magento Price Per Unit
There are various factors affecting the price per unit. As a store owner, it is imperative that you understand these factors for quality decision-making.
Bulk Orders
When you buy in bulk from the vendor, the price per unit is already reduced. You can easily pass these savings onto your customers. By pursuing a low-cost strategy, businesses can easily penetrate the market.
Packaging
If a customer buys only a handful of items, the packaging costs would be high since the rest of the packaging space is wasted. In comparison, larger orders reduce the packaging costs. Thus, consider this aspect when calculating the price per unit.
Economies of Scale
If you manufacture the products yourself, then increasing the production volume can bring down the costs. This concept is referred to as the economies of scale.
Magento 2 Price Per Unit
In Magento 2, you can easily set the price per unit for a product by installing a third-party pricing calculator extension. If you want to set pricing based on each unit quantity, area, volume or weight then you must use the “Per Unit Price” for each product. Per Unit Price is best fit for selling variable size products like tiles, flooring, fabric, blinds, carpet, liquids, sugar, etc.
Setup Products Price Per Unit in Magento 2
In order to configure Price Per Unit in Magento 2, download & install Pricing Calculator Extension by FME.
- After Installation, Login to Admin Panel > Tap FME extensions > Click Configurations
- In General Settings, Select Yes to enable the extension
Now Expand Basic Tab and set following configurations:
- Fields Label – Set fields labels to be displayed on product page, e.g. length, width, height, volume, meter, etc.
- Discount – Enter title for discount, e.g. Discount, etc.
- Keyword for Minimum Quantity - Enter text for minimum value like min, etc.
- Keyword for Minimum Quantity - Enter text for maximum value like max, etc.
Now Expand Product Page Tab
- Show Base Price – You can show/hide base price on frontend
- Show Discount Price - You can show/hide discount amount on frontend
Customizable Options Settings
Now, when you’re done with the Configurations General settings, you need to display input fields like length, width, height, weight, volume etc. on product page in order to take input value from customers. For this,
- Open a Product in editor mode
- Click & Expand Customizable Options Tab
- Now Click Add Option on right side
- Set Option Title – Make sure the option title matches the labels in the Configurations General settings
- Option Type – Select Field type
- Required - Check if you want to make the field mandatory
Note: Create input fields according to your requirements, e.g. create 2 fields (length, width) for area-based pricing, 3 fields for volume (length, width, height) or 1 field for single dimension volume like liter, etc.
Price Per Unit Volume (cubic meter, cubic ft, cubic inches, liter, ml, gallon etc.)
Now to Setup Price Per Unit Volume, open a product in editor mode
- Click Catalog on left sidebar > Click Products
Now click & expand Pricing Calculator Tab
- Active – Select Yes to Active the Price calculator for the product
- Measure By – Select Measurement Type - select Volume
- Discount Size – Setup discount size, set min & max value and setup discount as Fixed or Percentage amount
- Units – Select Input & Output Units like meter, foot, inch, etc. (will be calculated as cubic meter, cubic foot, cubic inches,)
- Unit Price – Select Per Unit price
- Pricing Limit – Set Pricing Limit, e.g. minimum & maximum values
- Save the Product
Note: You can also price & sell single dimension products like oil in litres, diesel in gallons, etc.
Price Per Weight Unit (gram, kg, ounce, pound, ton, etc.)
Now to Setup Price Per Weight Unit, open a product in editor mode
- Click Catalog on left sidebar > Click Products
Now click Pricing Calculator Tab
- Active – Select Yes to Active the Price calculator for the product
- Measure By – select Weight
- Discount Size – Setup discount size, set min & max value and setup discount as Fixed or Percentage amount
- Units – Select Input & Output Units e.g. Kg, gram, ton, etc.
- Unit Price – Select Per Unit price
- Pricing Limit – Set Pricing Limit, e.g. minimum & maximum values
- Save the Product
Area Based Price Per Unit (sq ft, sq meter, sq yard, sq inches, etc.)
Now to Setup Price Per Unit Area, open a product in editor mode & click Pricing Calculator Tab
- Active – Select Yes to Active the Price calculator for the product
- Measure By – Select Area
- Discount Size – Setup discount size, set min & max value and setup discount as Fixed or Percentage amount
- Units – Select Input & Output Units like meter, foot, inch, etc. (will be calculated as square meter, sq ft, sq yard, etc.)
- Unit Price – Select Per Unit price
- Pricing Limit – Set Pricing Limit, e.g. minimum & maximum values
- Save the Product
Note: You can also price & sell single dimension products like fabric in yards, nylon ropes in meter.
You can then use a shipping extension to set up Magento 2 dimensional weight shipping feature. Dimensional weight means the weight based on the product’s volume. There is no built-in Magento 2 dimension weight feature, meaning you’ll have to use a custom extension for it.
Coming back to our topic, the Price Per Unit extension also performs complex pricing calculations like:
- Calculate Price by Length
- Calculate Price by Meter
- Calculate Price by Gram, kg
- Calculate Price by Square Foot
- Calculate Price by Yards
- Calculate Price per KG
- Set Weight Units in Gram
- Calculate Price by Volume
- Calculate Price by Weight
Conclusion
This concludes our article on Magento 2 price per unit feature. While this customisation more than gets the job done, we can even customise it to suit your unique requirements. If you need any help, feel free to contact our support team.