You don’t necessarily have to be a business owner to figure out that price is important to your consumers. Therefore you will need to learn how to build online store pricing competitively.
You are also a consumer outside of your business, which means you’ll be looking at prices when you are shopping when you are booking holidays, and when you are choosing where you shop.
The cost of living crisis is getting to the point where people are unable to afford everyday things, never mind the luxuries. You should be able to figure out pretty quickly that if you have a store that is completely overpriced, nobody is going to be willing to shop there.
It’s not that they won’t want to of course, it’s that they won’t be able to afford to.
Instead of panicking too much about the cost of living issue, you should look at how you can make sure that your business is priced as competitively as possible, especially when you have an e-commerce store.
You are up against giants such as Amazon and eBay, and while you can use Amazon Repricing Software as part of your business intelligence software, it can help to do all that you can to price your products as competitively as possible to appease your consumers.
With this in mind, here are some pricing strategies to ensure that your E-commerce cost structure is not falling to the bottom of the heap.
Table of Contents
How To Do Pricing For Your Store Online
1. Be Specific
Be specific in your pricing. If purchasing decisions are based on logic, it’s smart to make sure that your consumers have a specific price.
Consumers often think that shops will make rounded prices artificially higher, so therefore they are less likely to press that button to buy your product.
Don’t choose around a product or one that is randomly priced. Make sure that you know what the product is worth and price it correctly as you start your new online store or revamp an old one.
2. Use Loss Leaders To Keep Pricing Down
How to build online store pricing right, lean into loss leaders. It may not sound like a good idea, but making sure that you have lost leaders as part of your strategy is actually a very smart way to ensure that your consumers will shop.
The reason for this is that if your local supermarket is advertising a product at a ridiculously low price, the customer will then feel like they are getting one over on the supermarket.
It looks like the supermarket itself will be losing profits on this particular product, but that’s not the case.
If you price a specific product particularly low, you know that you will draw people in.
For example, if your business sells barbecues, pricing some of these items low in the high season will mean that you will still end up making a lot more money, but customers will think that you are not!
3. How To Build Online Store Pricing Right With Visual Cues
Use as many visual cues for sale items as possible. If you lower the price of an item because you are putting it on sale, you need to make sure that people can see that.
You don’t want customers wondering how much does it cost?
It should be obvious in your marketing and it should be obvious to your customers that these items are marked down.
As we talked about the cost of living crisis, it’s important to realize that people will love a bargain, so if they are able to save money on a particular product they need to be able to see that that product is at a low value.
4. Show The Regular Retail Price
Always display the registered retail price. You need to be able to send a clear message to your consumer, and this message is “Look what you could have been paying”.
Often, if people could see the price they would have paid versus the price that you are charging, they are more likely to purchase the product. This is because they can see that you are giving them a great deal.
Of course, this is a strategy that you really should approach with caution. You shouldn’t start pricing down all of your products compared to your competitors, because it’s not good for business.
However, your products can still be cheaper than the registered retail price and if they are, make sure that you proudly display that.
5. Optimize Your Website
Speak to a designer about building an ecommerce website. You may know what your website needs, but you should speak to a designer to do it for you.
They will be able to make sure that everything is optimized so that people will click on the right things.
Once consumers see expensive items, anything after that will always feel like a great deal. This way, they will be much more willing to part with their money and that’s exactly what you want them to do.
Designers will be able to align things on your website so that they are optimally placed so that customers will want to buy your products. The cost of online store website may not be inexpensive.
6. Check Competitors Pricing
To ensure your products are competitively priced, begin by identifying your key competitors. Utilize online tools such as Price2Spy, Prisync, or simply visit their websites to gather pricing information.
Analyze their pricing strategies, taking note of any discounts, promotions, or price fluctuations.
Additionally, consider conducting customer surveys or focus groups to gauge their willingness to pay for your products compared to those of your competitors.
By closely monitoring your competitors’ pricing and understanding customer perceptions, you can strategically price your products to remain competitive in the market.
7. Offer Plan Per Month Billed Annually
Offering plans billed annually can be effective for sales because it incentivizes customers to commit to a longer-term relationship with a product or service.
By paying annually, customers often receive a discounted rate compared to monthly billing, making the offering more attractive. From a sales perspective, this can lead to increased revenue and cash flow predictability.
Additionally, annual billing reduces administrative costs associated with monthly invoicing and collection efforts.
This billing model also fosters customer loyalty and retention, as customers are less likely to churn after making an annual commitment.
In Conclusion On How To Build Online Store Pricing
Learn how to build online store pricing right is the key to make more sales online for your business. It’s not just the pricing itself but how you present it to your audience and market it.
What are you doing to price your products right online for your store? I’d love to hear about it in the comment section below.