Optimize revenue with dynamic seasonal pricing

Seasonal pricing can help bring in sales during slow periods. In this post, I'll guide you through the process of developing and deploying a revenue-boosting seasonal pricing strategy in WooCommerce.

A common thread amongst all types of businesses is the need to make money year-round. Considering that demand for products and services changes throughout the year, many businesses are adapting their prices accordingly.

Enter: seasonal pricing - a model that adapts prices to market demand.

Let's explore everything you need to know to successfully implement a seasonal pricing strategy in WooCommerce. I'll show you how to use 2 powerful plugins to automate the process of adjusting prices.

But first, let's begin by looking at the benefits of WooCommerce seasonal pricing strategies.

Traditional static pricing vs. seasonal pricing strategies

Stores that follow a static pricing strategy set a fixed price for products and keep it constant over time — regardless of changes in demand, season, or market trends. For example, a clothing store that prices a t-shirt for $25 all year round.

Stores that follow a seasonal pricing strategy, on the other hand, adjust product prices based on how demand fluctuates throughout the year due to holidays, cultural events, or industry-specific cycles. For instance, a clothing store that discounts ski jackets in the summer but prices them at a premium during winter.

Seasonal pricing can be highly profitable. For example, a recent McKinsey report found that businesses that employ dynamic pricing are projected to see a 2-5% uptick in sales along with a 5-10% increase in margins.

Here are some applications of seasonal pricing across industries:

• Retail. Think: Clothing stores that raise prices on summer essentials like swimsuits in spring.
• Hospitality and travel. Think: Tours and ski resorts that charge premium rates during the peak winter season.
• Events and conferences. Think: Venues that increase rates during high-demand dates like holidays like New Year’s Eve.
• Education. Think: E-learning providers that price courses by semester.
• Recreational facilities. Think: Gyms and water parks that raise prices during summer when demand peaks.

Benefits of implementing seasonal pricing in WooCommerce

When done well, adapting prices based on the season can have the following benefits.

The best WooCommerce plugins to implement seasonal pricing

Manually calculating and adjusting prices every season isn't the best use of your time. So, in this section, I'll introduce you to 2 powerful plugins that can streamline the process of updating product prices in your online store.

Read about them both, then skip ahead to learn how to set up WooCommerce seasonal pricing using your chosen plugin:

• WooCommerce Discount Manager - Set up your product prices based on the most expensive season, and then schedule discounts to be automatically applied at other times of year. Use this to price your products based on when the customer places the order. Jump to instructions.
• WooCommerce Product Options - Create custom price formulas which change product pricing based on the date the customer selects. Use this if you sell date-based products such as hotel bookings or events, where the price depends on the date selected rather than when the customer actually places the order. Jump to instructions.

WooCommerce Discount Manager

It's very time-consuming to manually update product prices every time the season changes.

Enter: WooCommerce Discount Manager.

WooCommerce Discount Manager simplifies and automates the process of managing discounts, so you can easily review or update seasonal pricing strategies as needed. It lets you create and apply various kinds of discount rules with three levels of targeting:

• Storewide, i.e. across all products.
• Category-based, i.e. for specific product categories.
• Product-based, i.e. for individual products or variations.

Top features

• This WooCommerce seasonal pricing plugin lets you apply various kinds of discount rules and conditions, e.g. fixed amount, percentage-based, quantity-based offers, cart-based discounts, etc.
• You can set start and end dates to ensure that promotions launch and expire automatically.
• It lets you apply discounts to specific customer cohorts (based on their user roles) to make your seasonal pricing strategy more targeted.

Tutorial: How to schedule seasonal pricing with WooCommerce Discount Manager

Next, I'll show you how to schedule discounts for the Q4 shopping season. More specifically, from 20 November to 5 December which covers the Black Friday/Cyber Monday sale. Use this as the basis for creating your own WooCommerce seasonal discounts for any time of year.

Before you start, add your products in WooCommerce as usual. Set the pricing according to the most expensive time of year. Then, we'll use WooCommerce Discount Manager to set seasonal discounts.

Step one: Create a new seasonal discount rule

1. Add the WooCommerce Discount Manager plugin to your website.
2. In your site's WordPress admin, navigate to Marketing → Discounts and click the "Add New" button.
3. Next, choose a discount type. There are several to choose from. Select "Simple" if you want the high season price to appear crossed out with the current seasonable price appearing alongside. Or if you don't want to mark prices as discounted on the product page, then choose any other discount type. 

   

4. Name your seasonal discount offer.
5. Under "Which products?", specify the items eligible for the seasonal discount.
   

   

6. Pick the type of discount to apply: Percentage or fixed amount.
7. Tick the checkbox if you'd like to add a sale badge next to the discounted items. This helps to highlight the value customers are receiving during low seasons.

Step two: Set discount rules and conditions

1. Under "Applies to", define the customer groups eligible for the discount: all customers, specific groups, or individual users.
2. Important: Under "Availability", set the duration of your seasonal discount. Use the date picker to select specific start and end dates.
   

   

3. Under "Product page content", add promotional text to product detail pages, such as: "Winter sale: Get 20% off this product! No code needed." You can use text, images, shortcodes, or HTML.
   

   

4. Under "Content location", choose from six different options for where the promotional message should appear on product detail pages.
5. Under "Cart notice", include a custom message in the cart to remind shoppers of the seasonal deal, e.g., "Congrats! We've applied your 20% winter discount on selected products!"

WooCommerce Product Options

If you want to set seasonal pricing based on a date that the customer selects - rather than the date when they place the order - then check out WooCommerce Product Options.

This robust seasonal pricing WooCommerce plugin enables you to create custom formulas which dynamically calculate product prices to reflect seasonal demand. The customer selects a date and the price changes accordingly.

You can also use this plugin to add a wide range of extra options to your products. For example, if you sell gift baskets with seasonal pricing, then you can increase the average order value by offering paid extras like gift wrapping, personalized messages, or premium chocolates for an additional fee.

To see it in action, check out out this live demo product: Mountain vacation (seasonal prices).

Tutorial: How to set dynamic date-based pricing rules with WooCommerce Product Options

Here, I'll show you how to use the "Date" and "Price formula" fields in WooCommerce Product Options to set seasonal prices.

Step one: Add the date fields

1. Add the WooCommerce Product Options plugin to your website.
2. In the admin sidebar, go to Product Options → Add New.
3. Name the option group.
   

   

4. Under "Visibility", pick the products that should have the seasonal price. Include or exclude products as needed.
5. Go to the "Options" section and click on "Add option".
6. Name it and then select "Date".
   

   

7. In the "Choice" section, update the label. Here, I've labeled it as "Check in".
8. Select the "No cost" price type.
9. In the "Selection options", tick the "Disable past dates" and "Enable time" options.
   

   

10. Tick the "Required" option.
11. Open the "Advanced settings" collapsible tray and customize how customers can choose options from the calendar.
12. Hit "Save changes" at the bottom of the page.
13. Repeat the steps to create another option named "Check out". (Alternatively, you can duplicate the "Check in" option and then modify relevant fields).

Step two: Add custom variables and price formula

1. Within the "Options" section, click on "Add option".
2. Name it and then select "Price formula".
3. From the "formula" section, locate the "Custom variables" section, and click on the "+" button.
4. Follow these guides to set up custom variables and price formulas.
   

   

5. After setting up the custom variables (as pictured above), we'll enter the following into the price formula field: [room_price] * [total_days].

Setting conditions: Advanced strategies for seasonal pricing

Adding logical conditions allows you to adjust the price formulas to maximize revenue in your online store. Here are examples of conditions you can add, along with formulas to match:

• Room-specific pricing adjustments to capitalize on heightened demand for special rooms, e.g. a $50/night premium suites' extra fee for rooms with mountain views. [Nights_Stay] * 50
• Early bird discounts to encourage people to book ahead of time, e.g. a 10% discount for bookings made 60+ days in advance, regardless of the season. if( gt( [days_until_booking], 60 ), [Base_Price] * 0.9, [Base_Price] )
• Late booking fee, e.g. an additional 20% for bookings made less than 24 hours before arrival during peak season if occupancy > 80%. if( and( lt( [hours_until_booking], 24 ), [date_in_peak_season] = 1 ), [Base_Price] * 1.2, [Base_Price] )
• Customizable add-ons that allow guests to add services like breakfast, ski rentals, or guided tours tailored to their group size or the duration of their stay.
  • Breakfast: [Group_Size] * 15
  • Guided Tours: [Group_Size] * [Tour_Duration] * 50

And that's it! Make sure you head to your site's front end and test out various scenarios for each formula before rolling it for all customers.

How to develop a data-backed WooCommerce seasonal pricing strategy

Now you know how to add seasonable pricing to WooCommerce, let's talk about how to do it in a way that best maximizes revenue.

Conduct historical market research

Every solid business strategy is built on past performance and market behavior. Review your store's analytics or use Google Trends to identify patterns of interest in your products or services. It's a good idea to observe how your competitors adjust prices during seasonal events so you can match them.

Understand your customers

Not all customer cohorts behave the same way during seasonal periods, so you need to understand their motivations and preferences.

To do this, you need to segment customers based on their buying habits in your store — for example, bargain hunters, high-value repeat buyers, one-time buyers, etc. You can then use the insights to orient your pricing to their expectations.

Map your seasons

Clearly define which seasons matter most for your ecommerce store, based on your product catalog and target customers. Factor in things like holidays, special events, weather conditions, etc. Then plot the:

• Peak season: The period when demand is at its highest, prices are at their premium, and inventory moves quickly.
• Shoulder season: The transition period between peak and off-season when demand is moderate, and pricing is usually in the middle of the range.
• Off-season: The period when demand is at its lowest, prices are typically discounted to attract budget-conscious customers or locals.

Identify key events and dates

To maximize your revenue, it's also wise to line up your pricing calendar with major holidays, cultural events, and key shopping days that impact your industry.

For example, research by Lighthouse, a market intelligence platform discovered that hotels in Las Vegas could raise prices 139% higher than average during the Electric Daisy Carnival in May.

Work out base and seasonal rates

Your baseline price should cover costs (including overheads) and allow a decent profit margin throughout the year. Once these are accounted for, factor in seasonal adjustments for low and high-demand periods.

For example, if you sell outdoor furniture, your base rate might be $200. But during summer, you could increase the price by 10-25% due to higher demand.

Remember to include higher costs during peak seasons, such as increased employee wages and order fulfillment costs as that can impact your profits.

Track and optimize

Much like you adjust your prices based on the season, your pricing strategy shouldn’t be static — continuously adapt it based on your business's performance.

Dig into Google Analytics 4 or your WooCommerce store's reports to keep tabs on metrics like inventory levels, sales volume, conversion rates, and average order value (AOV). It's also wise to monitor your competitors' price changes and adapt your pricing to your business's position in the market.

Seasonal pricing in action

Hotels are famous for pricing according to the season. In this example, we'll set room rates for a Mountain Ski Lodge in Aspen, Colorado that wants to implement a seasonal pricing strategy.

Peak season (December - March)

• Demand levels: This period sees the highest demand due to ski season and holiday travel. Room rates are priced at a premium. Nightly rates increase by 40-100% compared to low season prices. This is also when international visitors and families book premium stays.
• Focus: Maximizing revenue per room.
• Base rate: $220/night
• Weekend premium rate: $270/night
• Additional promotional strategies: Create premium packages that include ski passes, lessons, and spa services. Highlight limited availability to encourage early bookings.

Mid season (April - May & October - November)

• Demand levels: Demand dips slightly, but many nature enthusiasts and couples seeking quiet retreats still visit for events or weekend getaways. Room rates are 20-30% higher than the low season but lower than the peak season. Demand is moderate as the ski season ends or hasn't started yet.
• Focus: More flexible pricing based on occupancy.
• Base rate: $180/night
• Weekend premium rate: $200/night
• Additional promotional strategies: Offer group discounts or extended-stay promotions to fill rooms during these transitional months along with extras like value-added amenities such as breakfast and airport pickups.

Off season (June - September)

• Demand levels: Summer sees the lowest demand but draws hikers, mountain bikers, and event attendees. Reduce rates by 30-70% compared to peak season.
• Focus: Filling rooms with mid-range discounts for longer stays.
• Base rate: $140/night
• Weekend premium rate: $150/night
• Additional promotional strategies: Package deals with local attractions/all-inclusive options.

Seasonal pricing can supercharge your revenue

Pricing products based on market demand rather than keeping them fixed throughout the year can help your online business flourish.

Once you've created your data-informed seasonal pricing strategy using the steps in this post, get these WooCommerce plugins to implement in your online store:

• WooCommerce Discount Manager. This lets you schedule discounts that start and end automatically during peak seasonal events, such as Black Friday, Christmas, or summer sales. Plus, you can add rules and conditions that target specific customer groups (such as VIP customers or first-time buyers) and product categories.
• WooCommerce Product Options. This lets you use simple and advanced custom formulas (with variables and conditions) to automatically calculate product prices. Also, you can offer add-ons and upsells to further boost profits.