Cost based pricing model is the inherent from cost plus price formula. An economic way of expressing a price is that it is the cumulative of cost of a manufacturing a product along with constant percentages of margins. The accumulated amount is intended for sake of profits and revenues. Market plays a key role in determining the price and worth of service & product. Hence, devising a ceiling regarding expenditure of money can be the ingredient of cost.
Trends of Ecommerce:
The base for the revenue for any Ecommerce website is the price devising mechanism. Online marketing is trending modern marketing patterns; such patterns are giving rise to new techniques, methodologies and technologies, which can boost Ecommerce site over night.
Magento is a popular open source platform of Ecommerce industry that has prime focus for community and enterprise edition as well. Magento is a flexible platform that can have enhanced functionality through free and paid magento extensions. Magento product pricing add-on can add cost and markup percentage within the price under the rules governed by administrator.
Benefits of Magento Cost Based Pricing:
- Magento cost based pricing has simple rule in its derivation.
- Magento product price has less factors or variables affecting strategies of price.
- Configurable product price has advantage of less cost at minimum price threshold that resists loss of revenue.
- Increase in cost can be transferred to user by shaping the price.
Suggestions for Cost Based Pricing Products:
There are many Magento cost based pricing in market but frankly speaking every major extension in the market lack any aspect that may be affecting overall performance of the extension but Magento percentage pricing is evaluated as the best one.
- Let administrator to update prices in bulk along with cost & markup.
- The extension allows the admin to manipulate Magento product price rules.
- Percentage pricing Magento plug-in enables admin to devise rules in the form of percentage price or fixed amount.
- Magento Product price rules can be applied over multiple products and categories by using filters like SKU, ID and colors.