Posted in Pricing on the 10th October, 2016 by Max
I am pretty sure no customer has ever told you “Your price is not high enough”.
The reality is that a price cannot be too high. It can only be too high if you are not able to explain it.
This is all down to perceived value. This explains why a 200 page market trading book will sell for £25 while a 200 page novel will go for £7.99. In one case you are spending money in the view to make more, in the other you are buying a few hours of dreaming.
So make sure you focus on the benefits for the customers and ignore the pricetag.
Posted in Online, Pricing on the 26th September, 2016 by Max
If you are selling on Amazon, do you know you are not allowed to sell the same items cheaper elsewhere? Price on Amazon must be at equal to or lower than the price you sell at everywhere else.
If means if you are having a sale on your website, you need to discount the same items on Amazon, regardless of what your competitors are doing!
It also means you cannot use price as a reason for your customers to order direct from you rather than from Amazon.
Posted in Pricing on the 9th September, 2016 by Max
Various experiments have been made over the years regarding ending prices in 9 and whether it increases sales.
A 2003 study shows clearly it is the case however it goes one step further and proves it can even increase the selling price.
Researchers tested selling a piece of clothing for $34, $39 and $44. The winner was $39 even if there was a cheaper price of $34 for the same item.
Posted in Pricing on the 1st September, 2016 by Max
You buy an item for 10 including shipping.
Typical retail margin in your industry is 50%.
So you should sell it for 15.
The only thing that matters is how much it is worth to your customers. If they are willing to pay 20 or 25 for it, why sell cheaper unless you have a reason to?
Always applying a multiplier is not a pricing strategy, it is a primary school maths question.
Posted in Pricing on the 31st August, 2016 by Max
According to retail experts, the colours used on labels can influence customers.
Studies seem to show that labels written in red ink trigger an urgency state with male shoppers. It means they are more likely to act and buy the product immediately.
There does not seem to have a colour that is providing similar effects on women.