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Regional Pricing

How to Manage Franchise Territory Pricing on Shopify from One Store

Franchise and distributor brands need different prices per state without multiple Shopify stores. Lokally enforces territory pricing by state from one store and one catalog.

By the Lokally team4 min read
  • franchise
  • distributor
  • territory pricing
  • shopify
  • state pricing

How to Manage Franchise Territory Pricing on Shopify from One Store

Franchise and distributor networks in India often have contractual pricing agreements per territory: Maharashtra pays ₹999, Gujarat pays ₹949, and the North pays ₹939. These agreements reflect distributor margins, local competition, and logistics costs negotiated region by region.

The problem: Shopify has one product price. Running a separate Shopify store for each territory multiplies catalogs, apps and admin work. Lokally handles it with regional pricing rules from one store and one catalog.

How Territory Pricing Works on Shopify with Lokally

Lokally applies regional pricing rules at your Shopify checkout (via Shopify Functions). You create a region per territory from its states' pincode prefixes. When a shopper checks out:

  1. Lokally finds the region that the delivery pincode belongs to
  2. Checks if a pricing rule exists for that region
  3. Applies the territory price as a discount at checkout

Lokally can only lower prices, so your Shopify price must be the highest territory price, and every other territory gets a lower price from a Lokally rule.

The shopper sees the price for their territory. Shopify records the order at the actual checkout price. You can reconcile orders per state for distributor reporting.

Setting Up Territory Pricing

Step 1: Map territories to states

Create a simple table:

TerritoryStatesPrice
MaharashtraMaharashtra, Goa₹999
South 1Tamil Nadu, Kerala, Karnataka₹979
South 2Andhra Pradesh, Telangana₹959
WesternGujarat, Rajasthan₹949
NorthPunjab, Haryana, Delhi, UP, Uttarakhand₹939
Rest of IndiaAll remaining states₹999

Step 2: Create one pricing rule per territory

First set your Shopify product price to the highest territory price (₹999 in this example).

Then for each lower-priced territory:

  1. In Lokally → Regions, create a region with the territory's pincode prefixes as wildcards (for example 60* to 64* for Tamil Nadu)
  2. In Lokally → Pricing rules → Create pricing rule, choose the region and the products or collections
  3. Set a fixed regional price (for example ₹949 for Western)
  4. Save and publish

Maharashtra and "Rest of India" pay the Shopify price, so they don't need a Lokally rule.

Step 3: Verify with test orders

For each territory, use a test Shopify customer with a delivery address in one of the territory states. Verify the correct price appears at checkout before payment.

Product Availability by Territory

Some franchise setups include exclusivity: a product is available only in Distributor A's territory, not Distributor B's.

Put the exclusive products in their own collection. Then in Lokally → Storefront content, use Collection rules to hide that collection in the other territories' regions.

This hides it on the storefront for shoppers who choose those regions. If exclusivity is part of a contract, also check orders for exceptions.

Order Reconciliation for Distributors

Each Shopify order records the customer's delivery state in the shipping address. To generate territory-specific order reports:

  1. Admin → Orders → Export (filter by date range)
  2. In the CSV, filter by Shipping Province (state)
  3. Each row's price is the territory-adjusted price (the actual checkout price)

Share the state-filtered export with each distributor for reconciliation.

Protecting Against Cross-Territory Orders

A shopper from Maharashtra might enter a Gujarat delivery address to get the lower Gujarat price. At checkout Lokally applies the price based on the delivery pincode (the actual shipping destination). This limits gaming to cases where shoppers actually ship to a different state.

For high-value products where cross-territory ordering is a concern, check orders where billing and shipping states differ and flag unusual patterns.

Summary

Territory pricing on Shopify for franchise and distributor networks can run from one store with Lokally: one catalog, one Shopify admin, a region per territory, and territory prices applied at checkout based on the delivery pincode. Set your Shopify price to the highest territory price, and use Lokally rules for the lower ones.

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