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"Companies that have well-defined pricing strategies are 40% more likely to realise their monetising potential than firms that don't have them " says Madhavan Ramanujam and Georg Tacke in "Monetizing Innovation: How Smart Companies Design the Product Around the Price."

An effective pricing strategy, one that drives conversions, must have clear intent, quantifiable goals and a time-frame for implementation.

We're all hoping that the days of a recession are way behind us now but it certainly does no harm to be prepared in case the economy becomes rather less stable, particularly, for example, during this Brexit negotiating period – and beyond.

Airline Pricing is Confusing

If you spend any time researching on the internet for a flight you'll soon find that the price can be high one week, low the next - and the really confusing thing is that long-haul flights can often be cheaper than short haul destinations.

Strategic pricing sets a product's price based on the product's value in the eyes of your customers (or potential customers) rather than on the more usual cost of production plus a markup.

Loyalty is an old-fashioned word traditionally used to describe fidelity and enthusiastic devotion to a cause or an individual.  In a business context it describes a customer’s willingness to continue buying from a firm over the long term, preferably on an exclusive basis, and recommending the firm’s products or services to friends and associates.

Customer loyalty is seen as a key determinant of a firm’s profitability. Your goal should be to make your customers feel good about shopping with you – and want to return.

To be a successful Ecommerce retailer you need to pay close attention to your pricing strategy/pricing strategies. 

For distributors, the biggest challenge is running your business on low operating profit margins.

In its most basic form, distribution is all about the "spread," or profit margin, between what you bought the product for and what you sold it for. The bigger the spread, the bigger the profits.

Even if a lot of our high streets are suffering from the competition offered from ecommerce sites, shoppers are still willing to visit a "real-live" shop and be tempted to purchase if the prices to them seem reasonable and competitive.

It's a misconception that online prices will always be cheaper – and there's nothing tempts shoppers to part with their hard-earned cash more than an attractive shop window display or instore promotions.

Feeling downhearted that you can't compete with the "major players" in the Ecommerce world? OK, so you're not going to take on Amazon anytime soon but there are other canny ways to compete - and it all starts with thinking about, then developing, a competitive ecommerce pricing strategy.

Hot off the press is our latest guide for online retailers entitled: 'The Ecommerce Pricing Guide'.

You can download it here.