A high-quality pricing can not only greatly improve the conversion rate, but also allow customers to have a higher repurchase rate! But how can you find the right price and use it to maximize profits?
Next, the editor will teach you several key strategies and techniques for pricing, so that the product can win at the starting line.
1. What is a pricing strategy?
Pricing strategy, a very critical component of the marketing mix. Price is often an important factor in the success or failure of a deal, and at the same time the most difficult factor to determine in the marketing mix .
The three main pricing decision-making problems that merchants face to sellers are: how to price the product for the first time; how to set the price of a product over time and space to meet the needs of various environments and opportunities; how to adjust the price and How to React to Competitors' Price Adjustments!
The psychology of pricing
In pricing strategy, psychology plays a key role. Many items are priced at xx.99 instead of whole numbers, such as $2.99 and $3.00. What is the effect of deducting this cent?
In fact, people give priority to the numbers before the decimal point , and our brains process numerical information so quickly and completely subconsciously. We haven't even finished interpreting the digital information, so we immediately determined the size of the number, so we felt that 2.99 was much smaller than 3.00.
3. Exclusive Pricing
Loyalty programs that rank customers based on their total past spending and offer offers such as membership discounts or free shipping can encourage repeat purchases or increase the value of a single order.
4. Price adjustment on specific festivals
There are some specific festivals every year. Sellers can launch some promotional products according to different festivals, and the price can be adjusted. It is appropriate to make small profits and high sales during this time period. The purpose is to attract some loyal fans , and can use this to make Amazon pays attention to your store, which is very helpful to you later.
5. Bundled Pricing Strategy
This strategy involves bundling two or more products together and charging a slightly lower price than when sold individually. Typically, buyers buy all the products included in the bundle, even if they have no intention of buying them.
For example, if you’re selling a line of skincare products (each priced at $10), you might consider offering a set of three products for $25 to demonstrate your perceived value to buyers.
6. Classification plus pricing
Category mark-up pricing is also common in e-commerce operations. For example, 3C products, notebook computer sales and profits may not be high.
However, accessories such as charging cables, software, and computer bags are more frequently worn and updated, so a higher profit point can be set for such consumable products. Adding relevant product recommendations can also help increase product sales.