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  • Pricing Strategies to Help Improve & Increase Sales

    General Discussion Created 3 years ago | Updated 3 years ago
  • Ebere O Ebere O B
    Dear Seller,
    
    Did you know that utilizing smart pricing strategies when selling your products can contribute to your store growth and success in a competitive marketplace?
    
    As a seller, you must learn the art of setting good prices for your products as wrong product pricing can cause a decline in sales for your store. 
    
    We have shared some tips to put into consideration when setting your product price.
    KNOW YOUR CUSTOMERS- Knowing your customers is an important aspect of your pricing strategy. It is major that you profile your ideal buyers. Ask yourself what your buyers value; are they interested in bargains or do they value high quality and exclusive product? It all depends on how your product is positioned and who you should be selling to. How your buyers consider your product and what you are selling is down to how much you charge. Consider following up with your buyers once they have placed an order from your store to find out whether they might be interested in additional purchases if you are willing to negotiate.
    
    PRICING SIMILARITY CAN CAUSE YOU SALES- According to new research, if two similar items are priced the same, buyers are much less likely to buy one than the other if their prices are even slightly different. Buyers prefer to buy the cheapest of similar items. For instance, if two similar jewelry cost 5000, only 45% of buyers would purchase as oppose when the jewelry are differently priced, one at 5000 and the other at 7000, 80% of buyers would purchase the one with lesser cost. Buyers like to compare prices before making any sales decision. 
    
    ANCHOR YOUR PRICE-  Anchoring refers to the human tendency to rely too heavily on the first piece of information offered when making decisions. For example, the next time you visit a perfume shop, watch an inexperienced buyer purchase a bottle of fragrance as compared to an experienced buyer. The new buyer may likely go for the second cheapest. Buyers will generally not choose the cheapest or most expensive offering. But rather they'll choose the middle ground, the safe bet. When a potential buyer becomes anchored to a price, breaking their already conceived price notions becomes difficult. This is why it is necessary as a seller to create your own anchor- playing safe.
    
    In summary, the right pricing strategy drives revenue, margins and improves the amount of orders a seller receives. Therefore, it is important to measure the impact of the pricing strategy on your products.
    
    Remember to drop your comments via the forum after the impact has been measured.
    
    Happy trading! 

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