Pricing Optimisation is a central part of your business – if it isn't then it should be! Everything from your marketing and sales to your product and operations should be used to either drive potential customers to make an order or support the loyalty of that customer once they’ve made a purchase.
Britain has voted to leave the European Union. It was an unexpected result and not one that was particularly welcome to most businesses in the UK. However, the country is beginning to come to terms with the result of the referendum and the effects that Brexit may have on all our lives.
Psychological pricing is a universal technique that you can apply to virtually any other broad pricing strategy. The general idea behind the concept of psychological pricing is to play on the mental tendencies of consumers, establishing a price that they perceive as better value.
You have an online store, but how do you draw in new customers and keep them loyal? The answer is through offers, coupons, discounts and deals. It's a truth universally acknowledged that most online merchants will be faced at some time with the dilemma of whether to offer discounts, when to offer discounts and how much the discounts should be worth.
It's a fact that no two customers have the same Willingness to Pay, but you naturally want to capture as much of each of your customer's Willingness to Pay as possible. The answer could be to charge different prices to different customers – known as price segmentation or price differentiation.
Any business wants to maximise profits by pricing their goods and services at the right level. Traditionally for many businesses price management has been conducted using Excel spreadsheets to calculate optimum prices – and to convey these prices to all concerned in the sales process.
Any business wants to maximise profits by pricing their goods and services at the right level – and to control those prices using an accurate pricing solution or price engine. Traditionally for many businesses price management has been conducted using Excel spreadsheets to calculate optimum prices – and to convey these prices to all concerned in the sales process. No-one is saying that Word and Excel Price Lists are a completely flawed system of managing pricing but the modern, accurate and more efficient way is to use a pricing software rather than the old fashioned methods that are so susceptible to error, manipulation and corruption.
You may have a wonderful product or service to sell but just because you think it's wonderful doesn't guarantee success. In order to get the customer interested you also have to price it correctly and that requires knowing your customers well and what they're willing to pay, as well as what your competitors are charging in order to remain competitive.
Topics: Pricing Strategy
Wouldn't you have an easy life if you could sell your products and services online for whatever you wanted – and your customers didn't complain at any stage – or go elsewhere? Obviously this might seem like a bit of a fantasy but it's entirely possible to achieve if you're using the right methods of pricing.
what is Differential Pricing?
A differential pricing strategy allows a company to adjust pricing based on various situations or circumstances. The price variations come in different forms, from discounts for a particular group of people to coupons or rebates for a purchase. In a nutshell it means that certain customers pay less for the same product than others.
Topics: Pricing Strategy
Promotional pricing is one of the most powerful sales strategies there is. Prices can be reduced by a percentage amount for a limited duration and an item is therefore deemed to be in a Sale. This helps to increase the demand for the product from price sensitive consumers. Many businesses will offer promotional pricing as a sales incentive when initially launching a particular product line.