Blog

Introduction

Price optimisation is the process of finding that pricing sweet spot, or maximising price against the customers willingness to pay.  Companies up and down the supply chain, both in B2B and B2C settings, rightly dedicate a massive amount of time towards price optimisation to ensure that their products will sell quickly at the right price while still making a decent profit.

Pricing matters - it's one of the classic “4 Ps” of marketing (product, price, place, promotion). It will be a key element of every B2C and B2B strategic plans. A case in point would be Bryant Homes Pricing Strategy. They operate in a highly competitive market but Bryant is able to price its products in the premium range because it offers some of the very best homes (product), in attractive and sought after locations (place) and its promotional literature reflects an upmarket image.

Want to increase revenue? You need to grow to survive. Specifically, you must expand your customer base and increase your revenues.

The fastest and most effective way for a company to realise its maximum profitability is to get its pricing right. The right price can boost profits far quicker than increasing sales volume; the wrong price can shrink profits just as quickly.

Determining price is one of the toughest things to do in business, largely because it has such a big impact on your company’s bottom line. One of the critical elements of pricing is understanding what economists call price elasticity.

What is Promotional Pricing?

Promotional pricing is a powerful sales tool, used to increase the demand for a product, particularly among price-sensitive consumers. This marketing strategy involves reducing prices by a certain percentage for a limited period, hence, positioning an item as on sale. This tactic is often employed when launching a new product line as a way to incentivise sales. Today, we'll explore promotional pricing in detail and take a closer look at its forms, benefits, and drawbacks.

What is the Pink Tax?

Despite leaps and strides in the fight for gender equality, one area that remains conspicuously unfair is the price disparity between men's and women's products, often referred to as the "pink tax".

Understanding Cost-Plus Pricing

Cost-plus pricing has a longstanding history as a standard approach for setting prices for many B2B and B2C businesses. It's a model that prizes simplicity: tally up all the costs involved in the production or manufacturing of a product, set a margin that reflects your desired profit, and then add this to your total cost. This yields your selling price.

In the cutthroat world of business, profitability is not just an objective; it's a matter of survival. Irrespective of whether you're a promising startup or a multinational corporation, maximising profit is a common objective that underscores every business strategy. The idea is to strike a balance between revenues and costs, setting the business on the path of growth and sustainability.

No surprises here! Your end goal is to make money with your ecommerce store!  Well, that's all fine and dandy but it's not always easy to decide how to price your Ccommerce products in a way that will maximise your profits whilst being fair to your customers. 

Product pricing for your ecommerce store can be the most powerful tool in your toolkit when it comes to improving your bottom line but a fine balance is always required - and determined by the products you’re trying to sell.