Apply your learning

Use your understanding of Prices in Composable Commerce to help a home appliances online retailer setup their new online store.

After completing this page, you should be able to:

Select the right type of Pricing option for the home appliances retailer.

The Appliance Alchemists

The Appliance Alchemists is an international retailer that sells home appliances such as refrigerators, washing machines, and dishwashers. They have stores across the globe and several country-specific tiered loyalty programs. They have recently switched to Composable Commerce for their commerce infrastructure and are now in the process of setting up pricing for their products.

They have three product classifications—standard, premium, and custom.

Standard products are their most frequently sold items and have fixed prices across all Channels and Customer Groups. For example, they sell a basic refrigerator for $500 across their website, mobile app, and physical stores, regardless of the customer’s location or loyalty status.
Premium products are items that sell at a higher margin and have different prices depending on the Channel (that represents individual stores) and Customer Group (that represents membership tiers). For example, they sell a smart washing machine for $1000 in their US store, €900 in their Spanish store, and AU$1500 in their Australian store. However, Australian customers who have a gold or silver membership can purchase the same item for a reduced price of AU$1300 and AU$1400 respectively.
Custom products are items that they create on demand for specific customers and have dynamic prices based on the product specifications and external factors such as market demand and supply. For example, they sell a dishwasher that can be customized with different colors, sizes, and features. The price is calculated based on the customer’s choices and the availability of the materials.

Decide which pricing type (Embedded, Standalone, or external) to use for each type of product.