Pricing is an issue for ecommerce that you see very little mention of. The reason you see very little mention is that most assume shop owners have set the price they need to achieve the necessary or desired margin. You will find some tips on pricing tricks such as ending prices in .59, .49, .97 etc. While these can help an impulse buyer click, they are not really a strategy.
What is Pricing Strategy?
Pricing strategy encompasses are great deal of theories, techniques and trends…. All of which can be helpful to some and not at all to others. Ecommerce websites vary from each other on many levels, so many that the only good idea is one you have thought out, implemented, tested and measured the results. Below I have some pricing suggestions to get your brain warmed up…
- While you may mark your prices up using a scale of what you perceive necessary to attain the margin you need, it does not make the price a value for the consumer. Take the time to research the “going” prices and set yours accordingly. Getting more for something doesn’t pay the bills when you sell none. Consumers have so many angles, comparisons, and price shopping opportunities now that you haven’t a prayer to sell overpriced products.
- Creating value is a huge sale maker. Do your product pages tell your shoppers about the value and specific appeal they get by buying from you? Do you promise customer support, fair, flat or free shipping, fast delivery or any of the other qualities your company can deliver? You should! Making note of your “small” or “family owned” business can convert many sales for your shop.
- Supply and demand. If you have something in stock which is in short supply, it’s okay to raise the price a bit and capture the fruits of your supply. The price doesn’t even have to be what you consider fair, it just has to be selling.
- The lowest price doesn’t usually win! Believe it or not, most shoppers will not buy the product from the vendor that has the lowest price. While the highest price is not a winner either, somewhere in the middle is your best and most convertible range. The reason is really very simple, if you have the lowest prices, consumers tend to believe you also have the lowest quality and service…. Or worse that you are an eBayer that will gouge them on the shipping and they pay more anyhow. Perception is everything.
- Run weekly sales or coupons to attract the price savvy shoppers without putting off the quality shoppers. Offering a coupon especially will help to convert a price shopper, while not putting off or reducing your image to a quality, selection, service type shopper.
- Check prices for a sampling of your products on the web weekly…. Keep them up to date, the last thing you want is to find that you are currently charging a great deal more for a product that everyone else has on sale. Remember, shopping results will get them the price without ever clicking in to your website. Keep watch on the prices and keep them reasonable to get your share of the click thrus.
Remember, your prices need the same attention you give your content. What’s the point of creating a great website with quality content if your prices cannot make the sale?
One Response to “Converting Sales with Price”
Leave a Reply
You must be logged in to post a comment.