Product Pricing Guide
There’s a lot to think through when managing an eCommerce site. Once you’ve learned how to attract visitors to your online store, you’ll need to make sure it’s well set up to convert them to customers. Having your products priced at the right amount will be one of the key factors that help you to start making sales.
Read through these pricing strategies to learn how to price your products and then, how to use Logicblock to implement them.
Run A Market Comparison
If you’re brand new to your industry or product, the first thing you’ll want to know is your competitor’s pricing.
After you run an analysis and determine who’s selling and for how much, then you can make an educated guess at what the product should be priced at.
As a bonus to you and your customers, we have an integration with item411 which allows customers to display competitor’s pricing against yours. How does this help you?
Let’s say you had a physical brick and mortar store down the street who sells the same items as you. As a customer, what would you do? You’d walk down the street and compare both costs before making a purchase.
This is exactly what item411 does: create pricing that beats your competitors but never goes below a set cost. Item411 is included with Logicblock’s Essentials and Professional Packages.
Learn how to execute a product price comparison with item411 here.
Analyze Your Customers
The best source of information you have is already on your website.
You can use google analytics (Note to design: please link to new post “How To Use Google Analytics) to determine how customers are getting to your site, what they buy when they get there and how much they’re spending.
Learn everything you can about your customers: where they live, what they do and who they are, and then price your products for them.
Price For Profit
At the end of the day, you’re pricing your products for one reason: to make money. If your product pricing is not producing a profit for you, it’s time to make a change.
Remember, People Get This Wrong All The Time
Here’s the thing. When it comes to setting a price for your product, you’re ultimately going to be making a guess. Some people are better at this than others and building up your knowledge of the pricing and market will certainly help, but at the end of the day, you don’t know how much people will pay!
This is a perfectly normal part of running an eCommerce store. There will be moments when it will feel like you’re reading your customers minds you priced so well and times when you realize you inflated a product price 10X what you should have. That’s all a part of the job, and it happens to everyone. Accept the “mistake” and move on to the next one.
Read To Set Your Price?
Logicblock has documents to help you get started.
Create sitewide or customer specific pricing by setting up a “price rule” in Logicblock. The below articles walk you through the different steps to set up your price rules and how to use them.
- Price Rules (to modify the selling price of products)
- Importing a Price File for a Contract List Rule
- How to give customers special pricing
If you would like to create pricing based on item411 data, submit a ticket via our support site.