When talking about pricing strategies, we know that we must always have a clear understanding regarding current pricing trends. These vary depending on the behaviour of the potential buyer, the incursion of new business models or the opening towards greater levels of competition.
This is why it is necessary to discover and get to know new pricing strategies that allow each brand to differentiate itself, anticipate the wishes of its audience and be at the forefront of the market.
In this sense, it should be noted that pricing could have different implications when talking about strategies for online stores, for manufacturers or for those brands that do not have a direct sales channel to the end consumer, but through a retailer.
Undoubtedly, one of the big trends that is expected for 2019 are those related to omnichannel pricing strategies. Although the adaptation of prices between channels continues to be at the expense of each business’ quirks, in an environment in which more and more users buy through different platforms, it is of imperative necessity that each and every one of the brands reflects on how to get on the multi-channel boat during 2019.
Equate online or offline prices?
With what motive? How much room for improvement can there be? What is our competitors pricing strategy? It’s necessary for each person in sales, business strategy and marketing ask these questions and internalise them, only then will they be able to know which is the solution that best fits their online store.
Another trend in pricing for 2019 will revolutionise the brand-product-value relationship. That potential buyers become concerned about branding, is a reality. In fact, it seems that we are living, precisely, on a previously unseen wave of brand generation, together with its symbolism and belonging. This is something that we can be especially appreciated in luxury goods and, in general, the entire fashion sector. However, it has also been extrapolated to other sectors like technology. A good example here is Apple and their pricing strategy.
Now, more than ever, it makes sense to bet on pricing strategies based on the value that the customers project onto the product itself. Adjusting the price of the product according to this perceived value is key to maximize profitability. What factors should we take into account? The seasonality of the purchase, the needs of the user regarding the product and the contribution of value by the brand for that particular product. What makes it different?
Last but not least the role played by dynamic pricing strategies should be highlighted. And it is this technology, and the associated software, that have really made a difference regarding dynamic pricing in recent years.
The possibility of adjusting the price of each product individually as different factors vary is, as of today, the cornerstone of many large retailers such as Amazon. The great advantage offered by specialised tools for dynamic pricing is to be able to identify which are the key indicators that should lead to prices changes.
In whatever case, it is necessary to take into account pricing strategies oriented to the competition. As experts continuously point out, there are more and more reasons to monitor competitor prices – this is one of the essential keys to execute a complete dynamic pricing strategy.
It is clear that both dynamic pricing and having knowledge of what the competition is up to will not be new pricing strategies during 2019, but to continue with them will be essential to not lose market focus.