Are you finding it tough to work out how much what you sell is worth in the current market? Or, are you finding it hard to accurately charge for a service, such as hairdressing or sports massages?
You aren’t alone, and for many businesses, upgrading price strategies (or how much you charge for a service) is one of the toughest parts of running a business.
There are options to help you make these decisions, and here, you will be guided through 5 ways to upgrade your pricing strategy.
Price Optimization Software
You can streamline the entire process of pricing strategies with price optimization software.
This will allow you to automatically improve your pricing options to stay ahead of the ever-changing global market and increase your market revenue. Just try to make sure that any pricing strategies software that you invest in is suited to your business and is easy to use.
Segmented Pricing
Is it worth having a set price for everyone who buys from your business? Research says no. You can up your pricing strategy by offering discounts to students, people over 60, or even those who are disabled. This will help to encourage people to shop at your store and will also increase customer loyalty. You could even offer store or online cards to help customers within these groups automatically get the discounts you offer.
Psychological Pricing Options
It is the age-old trick that many businesses employ. Suppose you want to sell a cup; do you place it up for sale at $10 or $9.99?
Of course, you go for $9.99. This creates the image of the cup, or whatever you are selling, being more affordable. This is a proven tactic that encourages customers to spend their money more freely, thereby helping you to better assess how much an item in your stock is worth.
Bundling
This is a very common tactic to upgrade pricing strategies. Bundle similar items together for a set cost and see how well they sell.
For example, suppose you run an online store that is aimed at holistic self-care. You could sell organic face masks individually or bundle them with candles, bath oils and bubble bath to help move more products. These could then be sold as gifts, which will again increase the ‘must-have’ value for your customers and help you up your products. Best of all, if bundling items doesn’t work, then you can just unbundle them!
Experiment With Prices!
If you have noticed that your rare, exotic plants are not selling at the price of $20, you may want to think about lowering the price. Or, you could experiment with educating your customers about these plants online so they will see how rare they are!
If you can afford to, try to experiment with prices as much as you can. Don’t sell yourself or your service short; just try and see what works. You can look at customer feedback, talk to customers about pricing, and, of course, try to stay up to date with market trends to offer customers the best prices that you can.