Choosing an adequate strategy to fix the prices of your e-commerce’s products and services is essential for sales growth. You should keep in mind that the one strategy will not be valid for all of the items, as they present distinct characteristics and are directed to different audiences. So, following their typology, their price can depend on their quality or of the value that the attribute to clients, among others. The first step for fixing prices adequately will be performed as a deep analysis of your buyer persona and its necessities. After, you can help yourself with automatized pricing tools to provide quality information about the market that speeds up decision making. For this process to be successful, from Minderest we recommend you review the following key aspects in establishing prices that we have already commented on in some of our best posts.
- Analyze the product value
- Plan the launch of new items
- Find out the prices and strategies of the competition
Analyze the product value
The product value is one of the main factors that influences price establishment. So, if your items are considered quality or valuable for users, you will be able to increase their price without the demand being affected. The best example are iPhones, for sale at a market price much greater than other smartphones but with extremely loyal users.
You can combine a value-based price strategy, that also plays on the perception of clients. With simple techniques, like rounded prices with odd numbers, you will be able to create in consumers the sensation that they are paying the best price.
You can expand your knowledge about both techniques using the following links:
Planning the launch of new items
The launching of new products to the market suppose an opportunity to boost customer acquisition and amplify brand visibility. In this scenario you can start with two price establishment strategies following the type of product and objective of the e-commerce:
Skimmed Prices or Price Skimming
The strategy of price skimming or skimmed prices consists of the fixing of high prices for the launch of new products promoted as high quality or exclusive. Through the first period of launch, these prices are going to descend to induce sales to other targets ready to spend less money, but also those interested in these items. This has a direct relationship with the value attributed to the products or services, as mentioned previously. Consult here to get the best advice for implementing a skimming pricing strategy.
This is the opposite method. In this case, your prices will try to be the lowest of the market to favor a greater visibility among competition brands. This is above all useful for newly created e-commerce or those that are trying to increase the amount of products in the catalog.
Si es tu caso, infórmate en detalle sobre esta técnica en estos post:
Knowing prices and competition strategies
In a parallel form, those products with greater competition, you can fix your prices based on competition with the end goal of attracting a greater number of potential clients. In this sense, you can opt for lower prices, for acquisition of users with greater price sensitivity and little loyalty to habitual brands; average prices, similar to those that the consumer hopes to obtain; or higher prices, with the objective of being perceived as a higher quality product or service.
If you want to know more, we recommend these posts for you:
- How to adjust prices to your competition without losing margins
- Low, average, and high pricing strategies. Which is the most adequate?
In any of these price fixing strategies for your e-commerce it is important to get to know the price of competition to be able to anticipate and adapt yourself to the changes in supply and demand. This way you will be able to optimize sales and amplify your profit margin. Help yourself with competitor price monitoring tools to automate the search.