How to Markup Magento 2 Product Cost Price by Percentage?

If you are a store owner, then you’ll understand that one of the key aspects of running an online store is the pricing strategy. One must update prices regularly to ensure that they are in line with the market trends and help the owner turn a profit. Before we move towards the Magento 2 advanced pricing strategy, let’s quickly get an idea why store owners must update product prices frequently.

Need to Update and Adjust Prices Frequently

Market Competitiveness

eCommerce is a highly competitive industry as evident from the number of eCommerce stores opening up each day. With cloud-based platforms like Shopify, starting an online store has never been easier. From the consumer perspective, this competition provides additional choices.

However, from the business perspective, each new store is an additional competitor. If a store tries to grab the market share by opting for penetrating pricing strategy, you have no option but to follow a similar approach. Thus, to ensure market competitiveness, you need to keep an eye on competitor pricing strategies.

Customer Attention

Brand loyalty is eroding due to the high competition. Naturally, if a user has a never-ending choice, they’ll always be looking for a seller that can offer them more value. To ensure that you attract and retain customers, you’ll need to offer discounts. Regular discounts and promotions can be beneficial to your store’s bottom line.

Cost Fluctuations

Another reason to research more about Magento 2 advanced pricing is to consider the cost fluctuations. For instance, shipping charges may vary frequently. You’ll need to cater this cost into your pricing to ensure you make a profit. Otherwise, an increase in shipping costs can undermine your profit or even force you towards a loss.

Customer Segmentation

You need to set up “get special price Magento 2” feature for specific customer segments. For instance, if you have a class of frequent buyers, you ought to reward them with special prices. Likewise, if you have a geographically dispersed target market, you can set up special price in Magento 2 to offer prices based on local conditions.

Inventory Management

Lastly, you’ll need to configure the prices frequently due to inventory management. If you have unsold inventory, there’s no point in holding it. The best way to get rid of it is by offering special discounts.

Managing Product Prices Through Magento 2

Increasing product prices of entire catalog from the Magento interface can be quite difficult as it requires a lot of hard work to update product cost one by one. If you want to update product cost of a specific product or entire catalog, a much easier way is to use a price markup extension like Percentage Pricing by FME Extensions.

Percentage Pricing

The Magento 2 Percentage Pricing extension automatically adds profit margins when setting product prices.

Check it out! >

This extension allows you to markup product’s existing cost price by a percentage or a fixed amount. With Percentage Pricing extension, you can create a simple percentage price markup rule and apply to selected products or entire catalog. Once you’ve downloaded & installed this Magento 2 extension, open the store backend and follow these steps:

Creating a Percentage Cost Price Markup Rule:

• Open Store Admin Panel, Click FMEextensions from sidebar
• Click Manage Rules > Add New Rule
• Set Rule Name & Description
• Select Customer Groups & Store Views (as per your requirement)

Now set Percentage Cost Price Markup Duration (start & end date) & Set Rule Priority.

Now Click Conditions Tab,

• To apply Percentage Markup Rule to Products, you can select Product Attributes like SKU, Category, etc.

Now navigate to Actions Tab,

• Select Apply as Percentage of Original (original means existing cost price)
• In Action Dropdown, select Add and Enter Percent Amount, 10, 5 etc. If you want to increase cost price by 10% then enter 10.
• Save the Percentage Markup Rule.

Note: The percentage markup will be applied on product cost. So, you need to set the product cost at the products backend.

Add/Update Product Cost in Magento 2

To Add/Update Product Cost, follow these steps.

• Click Catalog > Products
• Open a Product in Edit Mode
• Click Advanced Pricing

Once the following Popup window opens, Enter the Product Cost and Click Save.

Final Thoughts on Magento 2 Advanced Pricing Feature

This concludes our article on how to markup Magento 2 product cost price by percentage. If you need any help, feel free to contact our support team.