Regardless of what type of product you’re selling, you know you need to set a price to sell it. Knowing that you need a price is the easy part. Determining your price – well, that’s where things get tricky. It can be difficult to price your products because if you go too high, you may scare off buyers. And, if you go too low, people may doubt your products’ quality. To help you price your products, let’s explore the subject a little further, shall we? Continue reading “What is Market Price & How to Set it for Your Product”
Let’s assume you have a product you’re ready to launch. You’ve weighed all the possible pricing strategies that are out there, and you’ve opted to go with a skimming pricing strategy where your price is set high based on the value to maximize profits, and then lowered over time to attract your the more frugal shoppers.
Great, but now what? What are your best methods for success? If you are asking yourself these same questions, you’re in luck because below you’ll find some ideas on how to succeed with your skimming pricing strategy. Continue reading “How to Succeed with Your Skimming Pricing Strategy”
Showrooming is the practice where shoppers examine items during store visits, but choose to buy them online because they are cheaper there. Online retailers are in a position to offer better deals as they don’t have to bear the same operational costs as their brick-and-mortar counterparts. Effectively, traditional retailers unwittingly act as showrooms for ecommerce portals.
Retailing as we know it has undergone a sea change. The siloed nature of legacy retailing is re-structuring from brick and mortar to clicks and swipes at a fiercly rapid pace. Retail trade entities have started moving towards what is now commonly referred to as ‘Omni-Channel’. Omni-channel, the holy grail of retailing is supposed to provide consumers a seamless and personalized shopping experience.
Not to be confused with product bundling, basket-based pricing is a smart tactic to entice visitors into buying more. It’s no secret that customers everywhere love a good bargain. Discounts, flash sales, coupons, cash-back and seasonal pricing are liberally used by retailers’ to increase footfalls/visits and thereby drive sales. The way basket-based pricing differs from product bundling is that the latter is restricted to a fixed set of products, while the former can drive sales across products and categories. This makes basket-based pricing a more potent promotional mechanism.
Retail has always been and will always be about choices. Brands and retailers strive to offer the widest and deepest assortment possible to attract substantial consumer traffic. Among other things, success in mass retailing heavily depends on pricing and promotions. The present day challenge for brands and retailers is to sift through the increasingly competitive, complex and ever-growing retail universe. The proliferation of open source platforms like Magento and mobile commerce solutions has led to a huge spurt in online retailers.
Price is generally driven by three external factors: the market, demand, and supply. A deep understanding of how these factors impact pricing is critical to developing a pricing strategy that will move units at scale and with a desirable profit margin. Generally, organizations staff teams of analysts to study the market, identify trends, estimate demand, and gauge supply levels. This model, however, comes with substantial costs and risks, especially as it pertains to accuracy and timeliness of strategic pricing initiatives. If you want to avoid the costs of staffing a team to ensure a successful pricing strategy, yet still want to optimize your pricing, consider implementing a price optimization platform instead.
Pricing intelligence is absolutely vital to being successful today in business. As part of the “Marketing Mix,” price has always been top of mind for marketers and business leaders. Ineffective pricing strategy truly hinders an organization’s ability to grow and be profitable. It can even derail success despite having an exceptional product-market fit. One could make the case that price is the most import part of the Marketing Mix. So how can marketers and executives ensure they’re optimizing their pricing strategy and setting their business up for success in a competitive pricing landscape?