{"id":23941,"date":"2025-06-18T04:25:25","date_gmt":"2025-06-18T04:25:25","guid":{"rendered":"https:\/\/tenthplanet.in\/odoo\/?p=23941"},"modified":"2025-10-22T08:52:58","modified_gmt":"2025-10-22T08:52:58","slug":"product-pricing","status":"publish","type":"post","link":"https:\/\/tenthplanet.in\/odoo\/odoo-retail\/product-pricing\/","title":{"rendered":"Product Pricing"},"content":{"rendered":"\n

Choosing the Right Pricing Strategy for a Retail Product<\/strong><\/h2>\n\n\n\n

Pricing is a critical factor in retail success. Choosing the right pricing model can maximize profits, attract customers, and ensure competitiveness. <\/p>\n\n\n\n

Indian retail pricing is a mix of cost structures, taxes, and competitive strategies<\/strong>. Whether you run a small store, an e-commerce business, or a large retail chain<\/strong>, understanding these components helps in optimizing profits while staying compliant. <\/strong>Below is a breakdown of key retail pricing models<\/strong>, their advantages, disadvantages, and best use cases.<\/p>\n\n\n\n

<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

1. Key Components of Retail Pricing in India<\/strong><\/h2>\n\n\n\n

A. Cost Price (CP)<\/h3>\n\n\n\n
    \n
  • The price at which a retailer purchases the product from the manufacturer or wholesaler.<\/li>\n\n\n\n
  • Includes:\n
      \n
    • Purchase Cost<\/strong> (with\/without discount)<\/li>\n\n\n\n
    • Transportation & Logistics <\/strong><\/li>\n\n\n\n
    • Import Duties<\/strong> (if applicable)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

      B. Wholesale Price (WP)<\/h3>\n\n\n\n
        \n
      • The price at which distributors sell to retailers.<\/li>\n\n\n\n
      • Typically includes a 10-30% markup<\/strong> over the cost price.<\/li>\n<\/ul>\n\n\n\n

        C. Maximum Retail Price (MRP)<\/h3>\n\n\n\n
          \n
        • The highest price<\/strong> a retailer can charge, as per Indian law.<\/li>\n\n\n\n
        • Must be printed on all packaged products.<\/li>\n\n\n\n
        • Includes:\n
            \n
          • Manufacturer\u2019s Cost + Profit<\/strong><\/li>\n\n\n\n
          • Distributor\/Wholesaler Margin<\/strong><\/li>\n\n\n\n
          • Retailer Margin<\/strong><\/li>\n\n\n\n
          • Goods & Services Tax (GST)<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

            D. Selling Price (SP)<\/h3>\n\n\n\n
              \n
            • The final price at which the product is sold to customers.<\/li>\n\n\n\n
            • Can be equal to or lower than MRP<\/strong> (but never higher).<\/li>\n\n\n\n
            • Retailers may offer discounts<\/strong> below MRP.<\/li>\n<\/ul>\n\n\n\n

              2. Pricing Strategies Used by Odoo Retail (Indian Retailers)<\/h2>\n\n\n\n

              A. Cost -Plus Pricing (Markup Pricing)<\/h3>\n\n\n\n
                \n
              • Formula:<\/strong> Selling Price = Cost Price + Profit Margin (%)<\/em><\/li>\n\n\n\n
              • Common in Grocery stores & small retailers<\/strong>.<\/li>\n<\/ul>\n\n\n\n

                B. Discount Pricing (Markdown Pricing)<\/h3>\n\n\n\n
                  \n
                • Prices are set based on discounts<\/strong> below MRP.<\/li>\n\n\n\n
                • Used for Branded products (Hamam, Gold Winner)<\/strong> in supermarkets<\/strong>.<\/li>\n<\/ul>\n\n\n\n

                  C. Dynamic Pricing (Margin Based)<\/h3>\n\n\n\n
                    \n
                  • Prices change based on common margin slabs<\/strong><\/li>\n\n\n\n
                  • Discount applied on MRP <\/strong><\/li>\n\n\n\n
                  • Example: 1%-10% margin gets 2% Discount on MRP.<\/strong>  20%-40% margin gets 10% Discount on MRP.<\/li>\n<\/ul>\n\n\n\n

                    D. Psychological Pricing<\/strong><\/h3>\n\n\n\n
                      \n
                    • Prices like \u20b999, \u20b9499<\/strong> to make products seem cheaper.<\/li>\n\n\n\n
                    • Common in fashion, FMCG, and electronics<\/strong>.<\/li>\n<\/ul>\n\n\n\n

                      E. Promotional Pricing<\/h3>\n\n\n\n
                        \n
                      • Festival Sales<\/strong> (Diwali, Big Billion Days)<\/li>\n\n\n\n
                      • Buy 1 Get 1 Free (B1G1), Cashback Offers<\/strong><\/li>\n\n\n\n
                      • Example: 50 % off<\/strong> on Specific Category\/Brands\/Products<\/li>\n<\/ul>\n\n\n\n

                        F. Bill Value-Based Pricing<\/h3>\n\n\n\n
                          \n
                        • Promotional strategy where a discount is applied automatically if the total bill value crosses a certain threshold.<\/strong><\/li>\n\n\n\n
                        • Example: <\/strong>Get 5% off on orders above \u20b92,000<\/li>\n<\/ul>\n\n\n\n

                          3. Taxes Impacting Retail Pricing in India<\/h2>\n\n\n\n

                          A.Taxes in Retail Pricing<\/h3>\n\n\n\n
                            \n
                          • GST slabs:<\/strong>\n
                              \n
                            • 0% \u2013 Essentials (milk, fresh food)<\/li>\n\n\n\n
                            • 5% \u2013 Branded food items<\/li>\n\n\n\n
                            • 12% \u2013 Processed food, cosmetics<\/li>\n\n\n\n
                            • 18% \u2013 Electronics, furniture<\/li>\n\n\n\n
                            • 28% \u2013 Luxury goods (with additional cess if applicable)<\/li>\n<\/ul>\n<\/li>\n\n\n\n
                            • GST is included in the MRP<\/strong>, not added separately at the counter.<\/li>\n<\/ul>\n\n\n\n

                              Pricing Challenges<\/h3>\n\n\n\n

                              \u2714 Price Sensitivity<\/strong> \u2013 Indian consumers prefer discounts & low-cost options.
                              \u2714 GST Compliance<\/strong> \u2013 Different tax slabs affect final pricing.
                              \u2714 Competition from E-commerce<\/strong> \u2013 Online discounts pressure offline retailers.<\/p>\n\n\n\n

                              \"\"\/<\/figure>\n\n\n\n

                              4. Odoo Retail\u00a0Price list<\/strong><\/h2>\n\n\n\n

                              A. Multiple Prices per product<\/h3>\n\n\n\n

                              Assign different set of prices to each Companies and assign to Customers. <\/p>\n\n\n\n

                              Example<\/strong>: Public Pricelist, WholeSale Pricelist, Membership Pricelist<\/p>\n\n\n\n

                              B. Advanced Price rules (discounts, formulas)<\/h3>\n\n\n\n

                              Price rules and apply discounts, margins, and roundings<\/p>\n\n\n\n

                              Example:<\/strong> 2 % Discount from MRP, 10% Markup from Cost<\/p>\n\n\n\n

                              C. POS Terminal \/ Company  Based<\/h3>\n\n\n\n

                              Set different price lists specific to company or branch in POS terminal.<\/p>\n\n\n\n

                              5. Screenshots<\/h2>\n\n\n\n

                              A. Selling Price – MRP Based (Branded Products)<\/h3>\n\n\n\n
                              \"\"\/<\/figure>\n\n\n\n
                              \"\"\/<\/figure>\n\n\n\n

                              B. Selling Price – Lot Cost Based (Unbranded Products)<\/h3>\n\n\n\n
                              \"\"\/<\/figure>\n\n\n\n

                              C.Selling Price – Product Cost (F&V)<\/h3>\n\n\n\n
                              \"\"\/<\/figure>\n\n\n\n

                              D.Selling Price – Slab Based (Margin Ratio)<\/h3>\n\n\n\n
                              \"\"\/<\/figure>\n\n\n\n

                              6.Price Info – Example <\/h2>\n\n\n\n

                              Set 2% Mark Down from MRP<\/h3>\n\n\n\n
                              \"\"\/<\/figure>\n\n\n\n

                              Set 30% Mark up from Landed Cost<\/h3>\n\n\n\n
                              \"\"\/<\/figure>\n\n\n\n
                              \n","protected":false},"excerpt":{"rendered":"

                              Choosing the Right Pricing Strategy for a Retail Product Pricing is a critical factor in retail success. Choosing the right […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[367],"tags":[],"class_list":["post-23941","post","type-post","status-publish","format-standard","hentry","category-odoo-retail"],"acf":[],"_links":{"self":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts\/23941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/comments?post=23941"}],"version-history":[{"count":0,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/posts\/23941\/revisions"}],"wp:attachment":[{"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/media?parent=23941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/categories?post=23941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tenthplanet.in\/odoo\/wp-json\/wp\/v2\/tags?post=23941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}