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4 Exceptional Pricing Strategies for Online Stores

In most cases, the online store manager uses traditional methods when determining the prices of products in his online store to achieve profits (one of these methods: costs - sales = profits), and there is no defect or error in these methods and their application to the pricing, but rather it is the first step to know the price and the initial number that The product can be sold, especially if the first goal is to set the price and wait until the first sale is achieved and the wheel of sales begins to spin, and then it is recommended to look at new pricing strategies that have proven successful and effective when applied in various electronic stores.

1- Free of charge:

Yes “free”, and can it be “free” pricing for a product, yes it is possible, and the most important question is,

How can an online store make profits when providing free products?!

Well, let's look at the practical side of this strategy, by offering free products (from time to time) the attraction of customers to the online store is certain (even if at least out of curiosity to know who this tag-01 is offering these free products, and what those products are), Among them are a lot of potential customers who have not even heard of your online store or even intend to buy at all, but curiosity is the biggest motivator here.

Here was the secret of this strategy, to use the curious inclination of the human soul to attract potential customers and make them browse your online store and move between its various sections and products until their eyes fall and their desire to buy is aroused, and the goal is achieved.

But caution and then caution, this strategy must be applied with caution, and free products are not constantly offered and backfired. Cross-selling and alternative selling, as we mentioned earlier in an article entitled (Raising profits in the application of cross-selling and alternative selling strategies).

Even if the customer takes advantage of the free product only and exits the online store without buying any other product, be sure that that customer will return to your store again to learn about the offers and new products that you offer and certainly will be converted to a customer who buys money, not for free.

There is an important thing and a rule to pay attention to, is that nothing is free (Nothing for FREE), and therefore you got customer information and data when he gets the free product (don't forget that), and this is one of the important direct selling and marketing methods in the world of e-commerce.

2- Pay the amount you want:

It is a method that allows the customer to pay the amount he wants for a specific product or quantity of goods while specifying a minimum price that he is allowed to accept to complete the sale.

The “pay what you want” strategy may be as weird as the free products strategy, and customers may take advantage of these two pricing structures to get products at the lowest prices or for free. tag-02

Yes, you will encounter customers who take advantage of that to the fullest extent, regardless of what you offer in parallel with these products, and the question is,

What is the intended benefit of implementing this strategy?!

You will have more loyal supporters of your online store (and your brand) than those who take advantage of your generosity, and studies have shown that the profits of stores that implement these strategies are on the same level as stores that apply a fixed pricing system and without exceptional strategies.

With no direct financial benefit (when viewed from this angle), these methods remain among the strategies applied by many companies and electronic stores, because they found and confirmed the great and direct marketing impact through word-of-mouth marketing, and users were transferred To marketers affiliated with the store, based on the principle of trust between the store and the customer, which is the goal of any online store.

Compensation:

The question here, and how to compensate for the cost of the free or reduced products that were offered so that we do not face the risk of loss, and the closure of the online store (God forbid).

Very simply, it is compensated within the prices of other products, but caution and extreme caution must be exercised when calculating and applying compensation to other products so as not to exaggerate the price of that product, and here comes the opposite result, and it is possible to divide a very small percentage of those costs on each product so as not to raise the value of The final product, and those costs are eventually compensated.

The other way is to provide added and accompanying services in the online store whose mission is to compensate costs, in addition to raising credibility and distinguished customer service.

3- Quotation:

It is to allow the customer to offer the price that he wants to pay for that product, and this strategy may be similar to the previous strategy “pay the amount you want”, but there is a big difference between them.

In this method, the customer offers a price that may be less than the value of the product in the market, but this does not mean that he will get the product at this price. You have the right to reject the customer’s offer or respond to it with another offer tag-03 similar to what he offered, and here the online store gets More than one opportunity at the same time to complete the sale successfully, while this opportunity is not available in the “pay the amount you want” method.

If the customer offers a price to purchase the product higher than the lowest price set for the product in advance in the store (and this specific price is not shown to the customer, only the general price appears with the product to the customer), the sale process is done quite easily, and the customer is satisfied and the store is as well, as the sense of The customer was satisfied as he paid the value that the product deserved, and the store was also satisfied with the value at which the product was sold.

If the offer was less than acceptable to the store, the store had the opportunity to negotiate with the customer to complete the deal in an amount satisfactory between the two parties without losing the customer, and here the advantage was that the store got a second chance to complete the sale (many stores want that opportunity).

4- Fixed price:

What if one fixed price was set for all products in the online store, regardless of the difference and type of products?!

Of course, this does not happen if the difference between the types of products is large (for example the difference between a shirt and a gold ring), but this strategy can be applied within the same product section (for example the men's shoe section only).

With this method, the customer will not fall into a state of confusion or price comparison of the product as much as his focus is on the quality of the product, its specifications, or its advantages, because he already knows the price as being a fixed price for all products, and here I said moments of thinking, hesitation, and comparison when making a purchase decision, it is known that comparing Prices are one of the most important steps in making and finalizing a purchase decision, and at the same time, the percentage of customers leaving the store to shop or compare in other stores has decreased.

The benefit of focusing efforts on finding the best products at the best prices from the other benefits that the store reaps when applying this strategy. The ceiling allowed to provide these products within these limits.

I reiterate, that caution must be exercised when applying these strategies, studying them in all respects with their costs and returns, and developing an integrated plan for the application, without neglecting the user experience, which must be in its best form and provide a unique experience, thus we obtain the desired results from them when the correct application is not We fall into the taboo of its counterproductive consequences.