Although the common idea out there is that the lowest price out there wins the customer, that’s not the case in the mind of the customer.
If you want to ensure that you’re winning the customer as well as keeping your profits intact, there are some methods to help ensure that you have customers who keep coming back to you time after time.
So, what are these tips? Let’s find out.
- What Makes You Unique?
We all know that there are tons of retailers out there, and most of them don’t offer anything beyond what others are also offering. To ensure that you have an effective pricing strategy, you have to find out what your selling point is. Some retailers like Amazon can give the customer quick shipping and handling. Others can provide excellent customer support, while some others can sell the customer products that can’t be found elsewhere.
So, what is your selling point? What makes you different from every other retailer the market such that a customer will want to come back to you? This is important in your pricing strategy since this means that you don’t have to compete on the same ground as everyone else.
- Give The Customer Something To Come Back To
Something that a lot of retailers forget is that customers are not just mindless consumers that are waiting to buy stuff off of their websites. They’re real, living, breathing people. That means you need to entice them enough to make them want to come back more and more. If a customer is coming back to your site repeatedly, you can be sure that they’re also telling their friends about the site, and that means new customers as well.
So, give the customer incentives. Offer loyalty programs, give them discounts, let them know that they can get a 10% discount on their next purchase if they refer a friend. All of these things may seem cheesy, but they actually work.
- Price Your Products At A Loss
Did he really just say that? Yes, I did. But it’s not what it sounds like. In a world full of competitive products, you might have to lose out on one to gain on another.
If you find yourself pricing your products at a loss, give the customer incentives to buy additional products. This means that even if you’re losing profits on one product, you can make it back through the gains that you got from another product. Although this may seem foolish, it actually does work.
- Study Your Competition
Sun Tzu says, “If you know your enemy and you know yourself, you can fight a hundred battles without disaster”. That same advice holds true in retail. Find out what your competition is doing better than you, find out ways to beat them at their own game. See what your strengths are and capitalise on them. If you can offer faster shipping, advertise that. If you can offer more exclusive products, then let the customer know.
This is definitely a battle, and you should be prepared to fight it with every weapon at your arsenal, and knowledge is the sharpest of them all.
- Know How Much You Stand To Gain Or Lose
What’s a competitive pricing strategy where you don’t know how much you’re gaining or losing? This is pretty simple, find out how much you stand to gain or lose with respect to your current pricing. See if that is efficient, and if it’s not, see what you can do to ensure that you don’t lose any more than you absolutely have to.
- Expand Your Catalog
Although it might be nice to have an exclusive catalog, that’ll only bring in a certain niche of people. If you want people coming enmasse, then you have to ensure that you have a big catalog with a lot of options. Customers like options, a lot of them. That’s your job as a retailer to give it to them. When you do that, you’ll find that customers naturally come back to you.
These are just a few of the tips that you can use to have a competitive pricing strategy. Always stay sharp and see what else you can do to streamline your business. There’s always something else to be done, and something new to introduce—that’s up to you as a retailer.