It has been always difficult to determine prices in e-commerce as there are a lot of factors affecting your decision to position yourself in the market: Purchasing prices, profit margins, costs, your competitors’ prices etc. There are also some intangible assets like your brand value, customer loyalty that might have an impact on your pricing strategy.
In this post, you’ll find detailed information about how you can use pricing position information (i.e. where you stand among your competitors relatively, like cheaper, most expensive etc.) to find your optimised prices for the products that you’re selling online.
In the image above, you can see how we show pricing position information in Prisync dashboard. The products are grouped according to their position information like the cheapest, average, the highest etc.
After you get this information, the rest is totally up to you and your pricing strategy. For example, let’s assume that you’re a company that has a price match promise to your customers. Well, in that scenario, to keep your customers happy, you need to investigate the products that you’re not in cheapest position. So, all you need to do is to go to the details of the products that you’re not in the cheapest position by using the filters above. Then, you’ll find a view like this:
In this view, your own store (mylovelystore) and your competitors are listed from cheapest to highest and this view helps you see what kind of actions you need to take to keep your price match promise. For this specific example, you can decrease your price to 125.10 to match it with the cheapest price (competitor1) and make your customers happy!
On the other hand, you don’t always have to decrease your prices. There can be some opportunities that you can increase your prices by still staying in the cheapest position. I guess you already started thinking about the potential increase in your profit margins! Let me make it clear for you.
In this scenario, you can check the products that you’re in the cheapest position to see if there is any chance to increase your prices while staying in the same pricing position. Here is a great example for this from Prisync dashboard:
As you can see, mylovelystore is in the cheapest position with the price of 71.20 and the closest competitor to that has a price of 88.99. Does mylovelystore really need to keep the price that low? Of course not. They can increase their price until 88.88 and still stay the cheapest one for this product, a great opportunity to make more profit by keeping their customers happy!
To sum up, pricing position information is a great opportunity to follow your own pricing strategy and to take the best pricing actions that drive you to more customers and more profits. With Prisync, you can easily reach this information and take advantage of it. If you’re interested in seeing Prisync in action, you can easily start a free trial from here and try it out with all features.