In a marketplace, a monthly price is a flat rate that users can pay to access a service or product for a full month, regardless of the daily rate. This price is often used to provide a discount or added convenience for customers who need the service or product for an extended period.
For example, if the daily price is $50, booking for 15 days would cost $750. However, booking for a full month costs only $1000, which is cheaper than paying the daily rate for 30 days (which would total $1500).
This structure benefits users by offering savings for longer-term commitments and simplifies payments by consolidating them into a single monthly pricing.
For sellers, it ensures more predictable revenue and encourages longer bookings.
How to Enable Monthly Price In Marketplace?
Go to your admin panel.
Select manage order type.
3. You can create or edit the existing order type.
4. Upon scrolling, you’ll find a tab “Allow sellers to define Monthly Price for their listings”.
5. Now the sellers in your marketplace can add a monthly fee to the listing.
Note: You can only enable the monthly fee when you have Day or Night availability order type.
How Does Monthly Pricing Work?
Let’s the how monthly pricing work with an example
The seller sets a daily base price for using or renting a service. In this case, it's $50 per day.
2. If a user books for a shorter period (like 15 days), they pay the daily rate multiplied by the number of days. So, $50/day * 15 days = $750.
3. Instead of charging the daily rate for each day of the month (which would total $50/day * 30 days = $1500), the seller offers a discounted flat fee for booking the entire month. In this example, the monthly rate is $1000.
4. Booking for a full month at $1000 is cheaper than booking for 30 days at the daily rate of $50, which would amount to $1500. This pricing strategy encourages users to opt for longer bookings by offering them a lower overall cost per day when booking for an entire month.
Marketplaces use monthly pricing to provide flexibility and cost savings for users who need services for longer durations. It simplifies budgeting for users and can incentivize longer bookings, which can be beneficial for both users and providers on the platform.