Understanding Bundle Pricing Strategies
Elastic Path Commerce Cloud offers two pricing models for bundles:
Fixed Pricing
A fixed-price bundle has a predefined price that does not change based on the components selected. In this scenario, a SKU is typically assigned to the bundle, and the pricing is set in the corresponding price book.
A gaming retailer, Playtend Games, creates a Game Console Starter Pack that includes a console, a controller, and a game for $499. The individual products might have a combined price of $550, but as a promotional bundle, the retailer offers it at a fixed discount.
- Fixed price is assigned in the price book.
- Customers always pay the same amount, regardless of the individual product prices.
- The bundle itself has a SKU, enabling it to be easily referenced in reports, inventory, and promotions.
Dynamic (Cumulative) Pricing
With dynamic pricing, the total bundle price is calculated based on the sum of the selected products. Instead of a set price, each component product’s price is taken from the associated price book, and the final price is determined when a customer makes their selection.
An outdoor gear retailer offers a custom ski package where customers can select their preferred ski model, bindings, and poles. Since the prices of these products vary, the total bundle price updates dynamically based on the customer’s choices.
- The bundle does NOT require a SKU.
- Pricing is calculated from the selected products in real time.
- Useful for customizable bundles or configurations.