Good Price Strategies - Fincraft Capital blog
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Technologies similar to Cookies
Similar technologies are technics or tools, using certain characteristics to identify devices so that visits to a website can be analyzed. It includes, for example, HTML5 local storage, local Shared objects, fingerprinting techniques, tracking pixels and plugins.
For ease of reference, cookies and similar technologies are referred as "Cookies".
Usage of Cookies
Cookies enable us to provide users with certain features and supply us with information about website visits.
We also make use of cookies to make our site more user-friendly, to better understand our existing and prospective customers, including associating a user with different devices and browsers that they may use for online targeting and advertising purposes.
The success of any business depends on sustainable growth. And it, in turn, depends on the effectiveness of the sales funnel. Often, when testing a business idea or opening a new business, the revenue forecast is approximate and based on guesswork rather than real numbers. The salesperson, dropshipper, businessman goes through a period of data accumulation, trial and error, gaining invaluable experience and, unfortunately, getting bumps in the road.
It is important to record every interaction with customers, meticulously collecting invaluable information to predict future sales. If you want to really make money and not "play business" by sacrificing your profits, you need to think carefully about your pricing strategy. And do not be afraid to change it over time.
Markup
There is no universal answer to the question, "How high or low should the markup be?" Consumers choose only those products or services for which the price is consistent with their understanding of the value of that product. With the right pricing strategy, you can consider all the factors that influence a customer's willingness to buy.
Initially, to draw attention to your idea and brand, you can use penetration pricing by selling the product at a lower price than your competitors. Once you establish yourself in a niche and realize that sales are steady and customers are coming back, you can raise prices to equivalent or make them even higher. Don't forget to post customer testimonials on your site.
It is important to record every interaction with customers, meticulously collecting invaluable information to predict future sales. If you want to really make money and not "play business" by sacrificing your profits, you need to think carefully about your pricing strategy. And do not be afraid to change it over time.
Markup
There is no universal answer to the question, "How high or low should the markup be?" Consumers choose only those products or services for which the price is consistent with their understanding of the value of that product. With the right pricing strategy, you can consider all the factors that influence a customer's willingness to buy.
Initially, to draw attention to your idea and brand, you can use penetration pricing by selling the product at a lower price than your competitors. Once you establish yourself in a niche and realize that sales are steady and customers are coming back, you can raise prices to equivalent or make them even higher. Don't forget to post customer testimonials on your site.
Bundled pricing.
Many retailers, both online and offline, attract customers by offering one basic discounted product or product line, encouraging them to buy more. This stabilizes sales, resulting in increased profit per transaction.
Value to the customer.
How well differentiated is your offer? The more different you are from your competitors, the more valuable you are to the customer. Your goal is not to blend in with the crowd. Give something special and unusual. This can be free shipping, an additional discount on related products, testing a new product, a sense of exclusivity and significance.
Don't sell a product at a price that is based on a cost-plus principle. Think about value-based pricing. Don't focus only on competitor prices.
Experience and knowledge.
Are your relationships with customers and clients complementary? Can you share knowledge and experience with the customer? Can you do it discreetly and on time? Attention is the most valuable thing you can offer anyone. It's a concept that borders on caring and interest. The client becomes loyal when he understands that in the eyes of the seller he is not just a tool to make money, but wants to help and solve the problem.
Many retailers, both online and offline, attract customers by offering one basic discounted product or product line, encouraging them to buy more. This stabilizes sales, resulting in increased profit per transaction.
Value to the customer.
How well differentiated is your offer? The more different you are from your competitors, the more valuable you are to the customer. Your goal is not to blend in with the crowd. Give something special and unusual. This can be free shipping, an additional discount on related products, testing a new product, a sense of exclusivity and significance.
Don't sell a product at a price that is based on a cost-plus principle. Think about value-based pricing. Don't focus only on competitor prices.
Experience and knowledge.
Are your relationships with customers and clients complementary? Can you share knowledge and experience with the customer? Can you do it discreetly and on time? Attention is the most valuable thing you can offer anyone. It's a concept that borders on caring and interest. The client becomes loyal when he understands that in the eyes of the seller he is not just a tool to make money, but wants to help and solve the problem.
Price in the long run
Think long term. If you start a business with underpricing, sooner or later you will have to raise it. How will this affect a particular customer and their ability to buy from you in a year, two years from now? Customers take hard any price increases, remembering the past deal, you will ask for a discount and special conditions. Be prepared for this, or do not underestimate the price from the beginning.
If all your customer is interested in is the lowest price, then very soon you are likely to lose him, he will always look for where to buy cheaper.
Inbound marketing.
Make sure your site content is relevant to your target audience, this will attract traffic that you can then turn into sales. One of the benefits of inbound marketing is that it is measurable (conversion rates), gives you more control over your sales funnel and predictable revenue. Analyze incoming traffic, track the audience's reaction to a particular advertisement.
Automate online commerce processes
Fincraft Capital s.r.o. allows you to automate most e-commerce processes, including selecting pricing strategies. It can be used to analyze the competitive environment, check the competitive position, and assess the customer's business position on the market. All products placed with the help of Fincraft Capital undergo constant technical moderation.
Think long term. If you start a business with underpricing, sooner or later you will have to raise it. How will this affect a particular customer and their ability to buy from you in a year, two years from now? Customers take hard any price increases, remembering the past deal, you will ask for a discount and special conditions. Be prepared for this, or do not underestimate the price from the beginning.
If all your customer is interested in is the lowest price, then very soon you are likely to lose him, he will always look for where to buy cheaper.
Inbound marketing.
Make sure your site content is relevant to your target audience, this will attract traffic that you can then turn into sales. One of the benefits of inbound marketing is that it is measurable (conversion rates), gives you more control over your sales funnel and predictable revenue. Analyze incoming traffic, track the audience's reaction to a particular advertisement.
Automate online commerce processes
Fincraft Capital s.r.o. allows you to automate most e-commerce processes, including selecting pricing strategies. It can be used to analyze the competitive environment, check the competitive position, and assess the customer's business position on the market. All products placed with the help of Fincraft Capital undergo constant technical moderation.