Let’s say you have a product, and it’s ready to hit the online market. How do you set the right price for it? What’s the best way to monitor pricing among your competitors?
Here’s a short FAQ to help you with pricing strategies and issues.
Why should the product’s price matter?
For the past few years, people have pitted price and quality. Many believe that price doesn’t matter – quality does. In fact, customer service is what matters to customers. There’s no doubt that product quality and customer service are essential.
They, though, should not make pricing secondary. It has different meanings for customers. It may mean the brand, savings, and even value.
How do you keep track of prices?
Keeping track of prices is not easy, especially if you are the master supplier and have vendors. You can set the best price for the product, but then the retailers can change it for whatever reason.
To help you, you can use platforms that monitor the minimum advertised pricing policy offered by firms such as PriceManager. It is a technology that provides notifications to you and the seller if they commit compliance violations. Moreover, you can keep track of the competitor prices for the same item online.
What’s the best way to set the price?
There’s no single technique in setting up the price for the product. You can explore some of the options here. Some consider matching theirs with those of their competitors. Others put into mind their brand. For example, Audi is a luxury car brand, and thus, its price should never be equal to that of a Nissan.
Many factors can also affect the price. One of these is the law of supply and demand. According to it, the price goes up when the demand is high, but the supply is low. The opposite happens when the supply is high, but the demand is low.
Price may not be the only factor that the customers look for, but it does matter to them. Giving it equal attention as you do with your quality and customer service is one of the best strategies to beat your competition.