In the subscription commerce platform, there are different pricing methods and ways to implement pricing:
You can price your products with two methods, as floating or fixed prices.
With the floating method, you set a base currency (such as Euro) and a price for that base currency (such as 20€). If the product is purchased in currencies other than the base currency, the price is converted based on the current exchange rate. The price in other currencies may change daily based on the exchange rate. You, however, will always receive the same amount of money for the product regardless of what the currency and exchange rate is.
The base currency is the Euro and the price is 20€. A customer in the U.S. purchases the product for $28.37 based on the current exchange rate. The next day, the price in U.S. dollars for the product is $27.56 based on that day's exchange rate, but you always receive the payment as 20€.
- Regardless of the currency, all prices are equal relative to the base currency.
- Revenue remains stable.
- Prices may not be marketing friendly.
- If customers pay in a currency other than the base currency, the price is converted.
With the fixed method, you set a base currency (such as Euro), a price for that base currency (such as 20€), and also unique prices for one or more additional currencies. No matter what the exchange rate is relative to the base currency, the price in the other currencies does not change. Currencies without a fixed price will be priced according to the floating method.
The base currency is the Euro and there are set prices for 20€, $25 USD, 4,000 Japanese YEN, and 200 Chinese Yuan. Regardless of the exchange rate, the prices for these currencies will remain fixed with the price you entered for them.
- Prices are more marketing friendly.
- Revenue fluctuates based on exchange rate.
- By using price configurations to specify who can use a particular product price based on language and location, you can market to price points in specific regions.
You can implement pricing at the individual product level, or through various price configurations.
The most basic way to price is for an individual product at the product level. You use the Base Price section of the Product portal. You define either floating or fixed prices, but you do not control which customers can use the prices according to their location.
You can set prices in other currencies, and customers can view the prices in another currency and select which currency to pay with. You can’t create more than one price combination for this product like you can with a price configuration.
Pricing through Configurations
You can create more advanced pricing scenarios with price configurations in the Applicable Price Configurator. You define either floating or fixed prices, and you can control which customers can use the prices according to their location. You create various regional price configurations. There is no limit to the number and variety of price configurations that you can set up per product. You can create multiple variations of a product price but for different locations.