Many e-retailers use price-monitoring services to check prices of their competitors, and then adjust their own prices accordingly.
Often a product’s price will change more than 10 times in a single 24-hour period, according to data from the price monitoring firm, Profitero Inc, but does that mean that you have to change your prices 10 times as well?
There is no doubt that retailers are well aware of the price cutting strategies employed by Amazon, and other large retailers such as Sears, and Walmart, but is price cutting the best strategy for your business?
Being informed is essential, however, many retailers believe that they need to find the right price for their business model, and rather than simply slashing prices, prefer to find ways to offer their unique services and quality to win a customer’s business.
If you have researched similar products to those you are offering, emphasize the superior quality of your products, excel in customer service, and offer a fair price (though not necessarily the lowest). Anything that sets your product apart can win you the sale – custom-made, free alterations, personal shopping advice.
Building up your email list and tailoring offers to each buyer’s personal taste is a great way for you to personalize your shopper’s experience.
Once a shopper has built a relationship with your store and loves to shop there because of service, quality and personal recommendations just for them, paying more for an item will be worth every extra penny!
Research has shown that retailers who can figure out how to price their products using some of these strategies are still able to sell plenty of products, and make a profit.