A great sale is clearly promoted well in advance, includes a creative and emotional marketing message, and has quality products at the right price. These first three points are easy to achieve. Your marketing message, product development, and advertising plans will be ready when you have a plan and a timeline. Pricing is another important aspect. Consumers care about pricing. According to research, 65% of online shoppers compare prices from the real world with prices online and decide which place is the best deal. It is important to have affordable prices that grab consumers’ attention. However, you must not price your merchandise too low otherwise you will lose any sales. Your sale prices are even more important during the holiday shopping season, which is a crucial time for retailers. Holiday sales will reach $1.04 trillion to $1.05 billion between November & January. eCommerce total sales are expected to rise between 18-21% from last year, peaking at $114 billion. How do you get this cash? It is important to correctly price your products. It can be difficult to determine the right pricing for holiday sales. There are some ways to ease holiday pricing pressure. These are five pricing tips that will help you maximize your profits this holiday season.
1. Reevaluate your costs.
This is a simple but important factor in determining the cost of your products. It is important to look at your costs more than what’s happening in the market. There are many options. Pricing templates And Calculators There are many resources available to assist you in determining your pricing structure. You should consider the cost of buying and producing your products as well as indirect costs such as storage and equipment costs. This information will help you determine your margin and allow you to experiment with different deals. First, you need to understand your numbers.
2. Do your research on your competitors.
Now that you have a clear picture of your costs, it is time to look at what your competitors are doing. Be careful not to focus on one product. This will give you an incomplete view of the market. Instead, you should break down pricing by product type. It’s not always the best option to offer lower prices than your competitors. Knowing their prices will help you to better understand the market and the price range that your customers expect so that you can set the right prices. A competitive pricing tool can help you in this area. Prisync It is an excellent competitor price tracking and monitoring tool, and it can be used by any size or type of eCommerce business. It is easy to set up and update prices every three hours. Prisync has been used by over 20,000 companies, with an average margin improvement of 20%. Here are some data screenshots that show what you might see with this tool.
Competera Competera’s Pricing Platform is another user-friendly, effective tool for monitoring competitive prices. This tool automates the tedious task of monitoring inventory and pricing, as well as data management, to keep your price competitive.
3. Analyze the historical changes in market prices during holidays.
Knowing the current market prices is not smart. It is smart to also know the trends in pricing for the holidays over the past several years. Do your research to find out the pricing patterns for your niche and the entire retail industry. The National Retail Federation is a good place to start your research. It’s your holiday headquarters and can provide valuable consumer research as well as data on holiday spending. Another site to check out is Internet Archive. This archive is non-profit and allows you to search through archived websites to see what they look like in the past. You can also find their prices. This could be an excellent tool for competitors.
And those pricing tools I listed above, you should pull data from those as well to evaluate pricing changes. Understanding these pricing patterns will give you a leg up with pricing. This allows you to predict future patterns and adjust your holiday pricing strategy accordingly.
4. Try different holiday pricing strategies.
Business is better when it’s smart. They are the key to innovation. Increase eCommerce traffic Profits can be increased. If there is one thing you should do this holiday season it is to experiment with your pricing strategy. One study found that customers were more likely to buy premium, regular and ultra-premium beer if they are priced at different levels. Customers were more willing to pay higher prices for premium and ultra-premium beers. You may be charging too much, and you don’t know it. You could make more profit if you offer a premium version or your main product. However, you haven’t tried it yet so you don’t know. You won’t be able to determine the best pricing strategy for your company or your products until you try them out, lowering and increasing prices as necessary.
5. Consider bundles.
Pricing is not just about how much each product should be priced. Bundles can work for everyone if they are done right. This is how it works: Study done in the electronics industry. Bundled items were more appealing to consumers. Bundled video games increased the demand for consoles by approximately 100,000 units. Be cautious. The study found that bundles could discourage consumers from purchasing video game consoles immediately. It also noted that bundles are not always the best option. “Consumers know that they can delay buying and wait for a better deal. After all, prices for other electronics fall significantly over time.” For example, the price of Nintendo’s Game Boy console was $100 at first, but it dropped to $70 within one year.” Take a look at your products to see if you can bundle them together. You will see which products sell better when you create bundles with different prices. Cross-selling can be boosted by displaying products that are related, especially if the bundle contains products from different categories. As online e-commerce sales rise year after year, product pricing is becoming more competitive. Pricing your products correctly can have a significant impact on your sales and revenue. You can find more information on marketing your products here.