How and Why to Set Up Price Tiers in Mergado?#

What Are Price Tiers and Why Set Them Up?#

Setting up price tiers means dividing your product range into groups (called queries) based on price ranges (e.g., products priced at 0–199 CZK, 200–499 CZK, 500–999 CZK, 1000+ CZK). In Mergado, this segmentation helps you better target adjustments (such as margin or shipping), choose the right cost per click (CPC) for bidding, and effectively configure PPC campaigns based on price level. Each product segment requires a specific strategy, and knowing which price brackets contain the most products, the highest turnover, or the highest costs gives you a strategic advantage.

When to Use Price Tier Segmentation?#

• Setting different strategies for “budget” and “premium” products, e.g., higher CPC for more expensive products.
• Setting shipping rates based on product price, e.g., free shipping above a certain price tier.
• Identifying products that generate the highest revenue or costs (see price tier configuration in the segment report of the Pricing Fox extension).

How to Set Up Price Tiers in Mergado?#

1. Using Automation#

The quickest way to set up price tiers is with a pre-built automation. With just a few clicks, you can create up to five price tiers.

1. In the selected project, go to the Automation page.
2. Select the automation called Dividing products into 5 segments based on price.
3. In the Automation parameters section, enter the name of the element that contains the product price in your feed (e.g., PRICE_VAT) in the first row.

Tip! Make sure you select the correct element based on whether you want to divide products by price excluding VAT or price including VAT.

4. Enter the upper price limit for each price tier in the corresponding rows.
5. Confirm by clicking the Run automation button.

If you want to edit, delete, or add more price tiers, you can do so on the Products page. Under the Saved queries tab, you will find a list of all your product queries, including the created price tiers. You can delete a price tier by clicking the trash icon, or click its name to edit it.

2. Manual Setup#

If you choose not to use the automation, you can create and configure product groups (called queries in Mergado) for individual price tiers manually. Follow the same steps if you created five price tiers with the automation but want to add more.

1. In the selected project, go to the Products page.
2. At the top of the page, click Simple interface.
3. Enter the name of the element that contains the product price (e.g., PRICE_VAT).
4. Then set the condition for the price tier. For example, if you want to create a query for products priced between 200 and 999 CZK, select the operator ≥ is greater than or equal to and enter 200.
5. Click the "+" icon and fill in the upper price limit. Again, enter the element containing the price (e.g., PRICE_VAT), select the operator ≤ is less than or equal to, and enter 999.

Tip! Make sure that when you enter two conditions, the box to the left of the fields reads “and” (meaning both conditions must be met). If the box reads “or” (meaning either condition), click it to change it to “and”.

6. Click Search.
7. Enter a name for this price tier query (e.g., price tier 200 to 999).
8. Click Save.

You will then see the query listed on the Products page under the Saved queries tab, where you can delete or edit it.

Applying Rules to Price Tier Queries#

After creating the desired price tiers, go to the Rules page and create the necessary rules for individual queries, then apply them.

Usage Examples#

Setting Different CPC by Price Tier#

Why use this: If you have products with very low prices and low margins, it makes sense to set a lower CPC for them so their advertising remains profitable. Conversely, for more expensive products, a higher CPC may be worthwhile since margins tend to be larger.

How to do it:

1. First, create suitable product queries by price tier following the instructions above.
2. On the Rules page, click New rule.
3. As the Rule type, select Cost per click pricing.
4. In the Queries field, choose the price tier for which you want to set the cost per click.
5. Choose whether you want to calculate the cost per click based on:

• a. Minimum click price – The rule considers the minimum click prices for products in individual categories (minimum prices are set by the advertising platform), and you can increase this price by any amount you enter in the Add to minimum CPC field.
• b. Percentage of product price – In the Percentage of product price field, you set the percentage of the product price you want to offer per click. For example, if you set 1% of the price, a product priced at 500 CZK would have a click cost of 5 CZK.

6. Enter a Rule name.
7. Click Create.
8. Repeat for other price tiers and remember to apply the created rules.

Tip! Track performance (clicks, conversions) separately for each tier and adjust CPC based on actual profitability.

Setting Shipping Rates for Different Price Tiers#

Why use this: For individually purchased cheaper products, free shipping may not be cost-effective, while for more expensive products, you can offer shipping as a bonus for customers.

How to do it:

1. First, create suitable product queries by price tier following the instructions above.
2. On the Rules page, click New rule.
3. As the Rule type, select Set shipping rates.
4. In the Queries field, choose the price tier(s) for which you want to set the shipping price.
5. Fill in the Carrier and prices for prepaid and cash-on-delivery shipping.
6. Enter a Rule name.
7. Click Create.
8. Repeat for other price tiers and remember to apply the created rules.

Assortment Analysis Using the Segment Report in Pricing Fox#

Why use this: By dividing your portfolio into price tiers and then analyzing them, you gain insight into which tiers generate the most revenue, clicks, or costs, and can set more effective strategies accordingly.

How to do it: Use the Pricing Fox extension, where you configure your own price tiers in the Segment report. Then choose the metric you want to track (e.g., Revenue or Product count) to get detailed information about your assortment. Based on these insights, you can easily set a more effective marketing strategy. Learn more about the Segment report in this article or video.

Tip! For example, if you see that a low price tier generates many clicks but low revenue, consider lowering the CPC or increasing the margin for that segment.

Advanced Bidding with the Bidding Fox Extension#

Why use this: Dividing products into price tiers is an ideal foundation for advanced bidding management using the Bidding Fox extension. You can set separate strategies for individual segments (e.g., different CPC or PNO targets for budget vs. premium products).

How to do it: In Bidding Fox, create a new strategy where you select the desired price tier as the target query (you can use queries set up in Mergado or create them directly in Bidding Fox). Set your goals (e.g., CPC, PNO, or position on the advertising platform) and save the strategy. Learn more about setting up strategies in Bidding Fox in this article.

Tip! For the low price tier, try setting conservative bidding. For the mid-range tier, optimize bidding based on performance. For the high price tier, choose aggressive bidding with a higher CPC.

FAQ#

What are price tiers and why should I set them up in Mergado?#

Price tiers are product groups (queries) divided by price (e.g., 0–199 CZK, 200–499 CZK, 500–999 CZK, 1000+ CZK). In Mergado, these queries let you customize rules, CPC, or shipping based on product price to make your campaigns more efficient. They also help with assortment performance analysis and identifying which products bring the most profit or cost.

How can I set up price tiers?#

You can create product queries based on price tiers using the “Dividing products into 5 segments based on price” automation. This automation lets you easily create up to five product queries in just a few clicks. Simply enter the element containing the price (e.g., PRICE_VAT) and the upper price limits for each tier. You can edit or delete tiers at any time.

Price tiers can also be created manually, which is the ideal approach if you need more than 5 tiers.

Can I edit price tiers created by automation or add more?#

Yes. In the Products section, under the Saved queries tab, you will see all the price tiers the automation created. Click a query name to edit it (change limits, conditions, or name), or click the trash icon to delete it.

In the Products section, under the Product listing tab, you can create additional price-tier queries manually at any time.

What if I need to segment products by more criteria than just price (e.g., brand + price tier)?#

In Mergado, you can combine multiple conditions when creating queries using the logical AND operator.

For example: BRAND = Nike AND PRICE_VAT >= 1000 AND PRICE_VAT <= 2000 This creates a query for Nike products priced between 1000 and 2000 CZK.

How do I set different CPC for individual price tiers?#

1. First, create suitable product queries by price tier.
2. On the Rules page, click New rule.
3. As the Rule type, select Cost per click pricing.
4. In the Queries field, choose the price tier for which you want to set the cost per click.
5. Choose whether to calculate the cost per click based on:

a. Minimum click price – The rule considers the minimum click prices for products in individual categories (minimum prices are set by the advertising platform), and you can increase this price by any amount entered in the Add to minimum CPC field. b. Percentage of product price – In the Percentage of product price field, you set the percentage of the product price you want to offer per click. For example, if you set 1% of the price, a product priced at 500 CZK would have a click cost of 5 CZK.

6. Enter a Rule name.
7. Click Create.
8. Repeat for other price tiers and remember to apply the created rules.

Another option is to use the more advanced CPC settings in the Bidding Fox extension.

How do I set up free shipping for more expensive products?#

1. Create a product query based on the desired price tier (e.g., PRICE_VAT >= 1500).
2. On the Rules page, click New rule.
3. As the Rule type, select Set shipping rates.
4. In the Queries field, choose the price tier (e.g., PRICE_VAT >= 1500) for which you want to set free shipping.
5. Enter the Carrier and set the price to 0.
6. Enter a Rule name.
7. Click Create.
8. Remember to apply the created rule.

How can I find out which price tiers generate the highest revenue?#

The Pricing Fox extension and its Segment report are ideal for analyzing price tiers. In the report, set the price tier boundaries and see how many products, revenue, or costs each tier accounts for. Based on this, you can easily adjust bidding, margin, or CPC according to actual performance. Learn more about the Segment report in this article or video.

How do I know my price tiers are set up correctly?#

On the Products page, under the Saved queries tab, check how many products each query contains. If the total of all products across queries matches the overall product count in your feed, the segmentation is complete. If some products are missing, check whether tier boundaries connect properly and do not overlap.

How many price tiers can I create?#

You can create as many price tiers as you need. The automation lets you quickly and easily create a maximum of 5, but you can manually add more on the Products page.

What should I do if price tier queries contain no products?#

Check:

• whether you are using the correct price element (e.g., g:price or PRICE_VAT),
• whether the lower and upper price boundary conditions are set correctly and combined using the “AND” operator, not “OR”.