#Revealed: 6 Winning Hacks for Pricing Your Products Right
A wise woman once said, “The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” Right now, she sounds so correct that it looks like she had acquired her sense of business acumen from a bunch of Gujaratis.
Pricing decisions affect a company’s revenue instead of costs. Using the best free website builder to create a web store for your company might not matter much in the near future if the price of your product is too high or too low.
An article (10 Ways to Convert More Consumers) that was published in Help Scout mentioned that only 15% of the population is willing to spend thoughtlessly before they “hit their maximum buying pain”. 61% of people are rather “average spenders”. And the rest 24% of people are “Tightwads” – who spend less anyway.
The rule is simple. If you want to stay in the entrepreneurial game, this is what Shiprocket Social, your go-to eCommerce website builder recommends – Price your products right.
And right now, it must sound like the biggest deal in the world, making you scratch your head on an endless loop. However, we have a manual that can help you accomplish this mission in the best way possible. Read more to find out!
- Cost-Based Pricing
As a free eCommerce website, Shiprocket Social thinks that the first type of pricing you must take into account is the cost-based one. This means that you take into account the overall cost of your product, add your profit margin to the mix and that’s it – you have a price tag for your company’s product.
Caution: Just on the side note – cost-based pricing is not as easy as one of your how to create a website for free tutorials. It requires you to delve into researching the market, studying your target audience’s tastes and preferences, adding all kinds of costs like raw materials, labor, overheads, etc. and a whole lot more. Because if you don’t do this properly, you could end up undervaluing your products.
2. Market-Based Pricing
Back in the year 1925 in America, a popular civil rights movement figure named, Malcolm X said, “Anytime you find someone more successful than you are, especially when you’re both engaged in the same business – you know they’re doing something that you aren’t.”.
In other words, learn from your competition.
As the best free website builder on the market, our suggestion to you is that you must know everything about your competition. Yes, EVERYTHING!
Ask yourself a few of these questions before you set the price of your product –
- Do you know who your competitors are?
- At what price are they selling their products?
- Who is their target audience?
With all your hopes and dreams of staying ahead of the competition, do your market research before they do. Mix both cost-based and market-oriented approaches together for making an ideal pricing strategy for your products.
3. Dynamic Pricing
Seasons change but the price stays the same? Not a chance, buddy! Shiprocket Social presents to you the most competitive and effective pricing strategy.
Dynamic pricing is straightforward in its agenda – Decrease your prices to increase sales during the off-season and increase your prices to generate more profit when you’re booming. This is exactly what most eCommerce companies are doing nowadays. If you’re in business on this free eCommerce website and want to stay in it in the long run, you’ve got to amp up your seasonal and promotional discounts game.
4. Consumer-Oriented Pricing
As an eCommerce website builder, we always urge our clients to mull over the Unique Selling Point of their product. Because if you’ve figured out your product’s USP, it would be much easier to decode your target audience and hence, set a price accordingly. If your customer values your USP, he’ll be willing to pay for it.
Besides that, it’s imperative to the pricing strategy that you comprehend the demographics associated with your product, such as, the age group, location, gender, etc. This information will assist you in setting the target audience for your business.
Some More Tips to Follow –
- The Power of 9: A price tag ending with the digit “9” is a charm price, because it makes the product look cheaper than it is. So for all of you who think you aren’t charming enough when you bat your eyelashes at the customers, here’s a trick up our sleeve for you to get that pricing oomph.
- Premium Pricing: You wouldn’t buy a Chanel or a Dior if it was price-tagged the same amount as a thrift store cardigan, would you? That’s exactly how premium pricing tricks the customer into believing that the high-priced product on your free eCommerce website is an article of prestige and good quality. And in a world where the hush-hush of “What will people say?” prevails heavily, we think it’s time that you resorted to this tactic to grow your business.
- Product Discount in Plain Sight: Did you just give a 50% discount to your customers on a breathtaking pair of crimson heels? Well, show it off as much as possible when running paid ads on social media handles. And since your customers love a good saving on their purchase (it gives them a sense of accomplishment), why don’t you show the regular price along with the discounted one to prove exactly how much they are saving at that moment.
You could read countless how to create a website for free manuals to give a head-start to your dream business idea, and it won’t matter if you don’t have your pricing basics checked. But you know what? That’s where we come into the picture. Because with Shiprocket Social, selling online has to be an easy feat.
If it’s not easy, it’s not the best.