Magento is a platform for eCommerce store owners built on open source technology. It allows vendors to make use of a fully flexible shopping experience. They can also gain specific control over how their shop appears for their end users.
As well as this, there are a number of different tools you can use alongside Magento. These tools help support with marketing, search engine optimization (SEO) and catalogue-management.
These aforementioned tools are useful for those who are looking to make a big impact in the world of online shopping.
One crucial aspect that many Magento users might want to consider is how frequently they change their prices.
In this post, we’re going to look at a number of different competitive pricing strategies you can use (as a Magento user) that doesn’t include software.
We’ll look at what systems currently exist to change your prices with Magento and how different life could be if you were to use a tool to help you do this.
Benefits of choosing Magento for eCommerce?
The technology you use to build and grow your online store is important. Magento offers a wealth of benefits to do just that.
To start, Magento, as a content management system (CMS) is sophisticated. It has a wide range of features and functions you can use to provide your customers with an incredible shopping experience.
You can ensure your Magento-run store has SSH (Secure Shell) access. This provides a secure channel for any network services that usually operate on an unsecured network. This means store owners can access their server remotely and manage their store.
Magento is built to help you increase conversions. The hassle-free shopping experience means you can create checkout processes that are short and easy for the end user to understand. If you want to offer your customers even more choice, you can minimize the number of steps needed to take them to a purchase. Or even allow customers to check out as a guest.
Magento also offers a number of extensions to improve the way you build and grow your online store. For example, the various social media extensions allow users to purchase products directly from social channels. You could showcase your products on Pinterest and link your Magento store right to it. This way, when a Pinterest user sees a blue ‘buy it’ button, they can complete their purchase from right within the app.
Other Magento benefits include offering customer multiple payment options. In this day and age, buyers are spoilt for choice. They get to decide when, how and where they buy. So if you limit the number of ways they can make a purchase, they’re likely to go and visit your competition. Especially if you’re considering selling internationally, you’ll want to make use of the various Magento global payment extension options.
It’s clear to see, then, that Magento offers its users a wealth of knowledge and extensions when it comes to growing your eCommerce store.
One thing we haven’t mentioned yet, however, is pricing.
We harp on about pricing (a lot) because it’s so dang important. If you’re a Magento user running your store, you shouldn’t neglect to think about how you actually price your products.
How do you change your product’s prices in Magento?
If you want to change the prices of your products in Magento, there are a number of ways to do it.
In your control panel, head to Catalog and then Manage Products. From there, search for the product number of the item you want to change. You should see some general information about the product in question. From there, you’ll be able to change the price field to whatever figure you’d like.
Click save and you’re all done. The price has changed.
But what if you want to make use of specific pricing strategies. What if you want to change the prices of a number of products.
It goes without saying, it’d be an arduous task to individually change the price of each product as and when you need to.
Imagine if you had 1000 different products. It’d take you weeks.
One Magento user needed to change their product prices based on specific criteria. Their best bet was to use code (as seen in the image above).
This is fine if you’re competent with code, but what if you’re not.
What’s more, this particular user couldn’t actually find a workaround for what they wanted to do.
It means you need a new system.
The difficulty with competitive dynamic pricing
Dynamic pricing is where you alter the prices of specific products based on predefined circumstances.
It’s an effective method of pricing because it’s autonomous. It allows you to set the best price based on what your customers are most likely willing to pay at the time.
The beauty of dynamic pricing is that it uses data to control what the price of a product should be.
Dynamic pricing looks at the current and past prices of your own products and your competitor’s products to decipher the optimum price point at any given moment.
We’ve already established that within Magento, changing the price of one product is simple. But changing the price of all your products, at any given time, based on specific circumstances?
It’d be difficult.
That’s why if you use Magento and want to make use of competitive pricing strategies like dynamic pricing, you need to implement a tool or extension to do just that.
Using a tool to help you implement dynamic pricing will give you the opportunity to set smart pricing strategies. This means prices change to ensure they are a certain amount higher or lower than your chosen competitors.
Once you set your parameters, this happens in the background, without any input from you.
Meaning, you have more time to focus on the other aspects of your eCommerce company. This could include driving traffic to your store, talking to your customers or sourcing new products to sell.
In this article, we’ve looked at how eCommerce vendors can use various different pricing strategies within their Magento store without first making use of any pricing extensions.
In the current climate, although pricing strategies like charm pricing and anchor pricing are useful and very viable…they’re no longer enough.
As your store grows and grows, so do the number of products you sell.
When the number of products you sell increases, it becomes increasingly harder to manually monitor and change prices. We’ve also considered the downsides to this. There is significant difficulty in implementing successful pricing strategies like dynamic pricing and price discrimination.
Even if you do have fewer products, or enough manpower to manually change prices, you miss out on the intelligence afforded to those who make use of price comparison and repricing tools
If you currently run a Magento store and would like to know more about how you can make use of eCommerce price comparison tools, look out for our Magento product page. As the official Magento partner, we’re excited to share this content with you.