One of the most important challenges in an ecommerce is to fix adequate prices to the products in each moment. Valuing together the product costs, their value and the competitor prices can be a more complicated task than it seems.
Its obvious that for fixing product prices for your eccomerce, first you need a pricing strategy adjusted to the characteristics and objectives of your online shop. However, at the time of executing it, there are 5 errors that many ecommerce commit again and again, both in terms of the competition and the relationship with the potential customer. Do you want to know what they are?
1. Underpricing. Reducing prices always results to be more attractive to the consumers, but, to which point can you make offers? Bear in mind that in the price of your product the costs, the shipping costs and the VAT will influence; with this figures in mind you can play above or below, but always with control. Pricing software that reflects the benefit you get with the product at any given time can help you to have a clearer view of your prices.
2. Permanently copy the competition. Is it worth changes your products prices every time you competitor does? If the difference is not as important as to have an impact on your ecommerce, it’s better to contain the profit margin. Keep in mind that your customers aren´t just motivated by the prices in your shop, but also by values such as trust and transparency.
3. Skip the consumer impression. How much would your potential customers pay for your product? Remember your client’s aren´t going to pay more for your product just because it seems to be exclusive, there should be a clear value proposition that differentiates it enough from other products to make them attractive. And on the other hand, the same thing happens; few clients would pay less than they thought a product was worth, as an abysmal difference in price with your competition may generate mistrust or reluctance as to the actual quality of the product.
4. Modifying prices before campaigns or sales. Putting prices up and down before these discount times can make you stand out with your potential customers and your competition. In your pricing strategy you must have those dates well located to plan the price changes in the calendar without anyone being able to question your transparency.
5. Having insufficient data on competitive prices. At this point you should be clear on two variables: how to monitor the prices of the competition and which brands can really compete with yours.
First of all, to monitor the competition in real-time, it is imperative to have price intelligence software. Manual monitoring can overlook some data from other brands and vendors that may not have been on your list of competitors.
And secondly, from this list of potential competitors, you must be clear which companies can really be the competition in your market. Doing online price tracking with brands that are not relevant to your business can cause you economic loss and damage to your company image.
So now you know, if you want to avoid unwanted surprises, keep in mind these 5 common mistakes - easily avoid ed- before modifying your ecommerce prices. You will see how quickly you begin to consolidate your pricing strategy.