There is no shortage of information available to help sellers understand how retail pricing works and how to plan an effective strategy for their store. But there is one approach to pricing products to sell online that can really make your job much easier.
The topic of product pricing is broad. However, even a glimpse of some different strategies is often all that’s needed to see what may (or may not) work for a business.
The Short List:
A little research on the topic of pricing products to sell online reveals a host of ways you can calculate a product’s price. For example,
- Mark-up pricing
- Manufacturer suggested retail price
- Psychological pricing strategy
- Multiple pricing strategy
- Discount pricing strategy
- Prestige pricing strategy
- And more . . .
The Time Factor:
The caveat is that you have to consistently plan for and implement different processes and calculations for each method to find the right price. And some take work.
Processes range from setting pre-set profit margins to using suggested retail prices to rounding prices for a perceived lower cost . . . others include doubling the wholesale cost to multiple item calculations for clearance items and mark downs to offering discounts with coupons and reward programs.
Good strategies, of course, but when you consider the learning, planning, tracking and coordinating work involved, it all takes precious time.
Set Your Own Prices!
Instead of spending so much time comparing and tracking pricing methods to see what is working best for your business at any given moment. Plus this is easier to implement while still keeping you in control of pricing products to sell online.
All you have to do is check your competition. See what they are selling the same products for and then set your prices accordingly. You have three choices here:
- meet their prices
- go slightly lower
- or slightly higher
But remember, there’s a fine line between what a customer is willing to pay and what you need to charge in order to cover your operating expenses and still earn a profit.
That’s why setting the right price for your products is crucial if you want to succeed online. And by using this fairly simple, yet effective, “secret” of pricing products to sell online, you‘ll get more accomplished and your business will surely benefit as a result.
What are your thoughts on this topic? Feel free to leave a comment below!
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