Posts Tagged ‘online marketing’

Plan Out Pricing Strategy For Ecommerce Development

Published on Friday, 29 March 2013 07:20

Darin McGilvra

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A pricing strategy doesn’t necessarily mean having the lowest price. When you are working with an ecommerce development team from a Temecula Web design company on a new site, you need to plan out your pricing strategy before launching the site.

Before you can determine pricing, you need to figure out your margins. This means understanding the costs for your products or services.

You also want to include overhead costs, such as the cost of running the website, rent for office space, and salary for customer service reps. Be as exact as you can. You don’t want to deal with rough estimates.

Once you have determined the costs, then you can focus on pricing. First, you need to determine what your competitors are doing with their pricing. Look through numerous websites offering similar products and keep track of the prices they are offering.

Compare the results to your costs and use the comparison to help in determining your pricing strategy. If your costs are low enough so you can price lower than all the competitors, then you can use the strategy of providing the lowest price.

If your costs aren’t low enough, then you will need to adjust your strategy. If you have to price higher than most of the competition, you can market your products or services as being of a higher quality. Show customers that your products or services are worth the extra cost.

If you can price in the middle of the competition, you can market your products or services as having the best value. This means you provide a good balance of price and quality.

If you feel like you have far and away the best quality to offer, then you will most likely want to price it higher than the competition. Customers will expect to pay for high quality, and in fact may not perceive what you offer as high quality if you don’t price it high enough.

Plan pricing while Temecula Web design completes your website

After you have determined your overall pricing strategy, you’ll want to look at ways to bring in new customers. This is usually done with special deals or offers.

For example, you may want to offer a product or service at a lower than usual price for a limited time even though the price is so low, you’ll lose money on it. This is called a loss leader and is a common strategy. The idea is that the special low price will entice customers to bring customers to your website and entice them to buy other products or accessories for the loss leader.

Another strategy would be to offer special deals for buying multiple products or services, such as buy one item and get the second for 50 percent off. Customers will often believe they are getting 50 percent off when they are really getting 25 percent off.

You also could offer a package deal where you offer several related products for one price that is cheaper than if the products were purchased individually. The savings doesn’t have to be great because many customers will appreciate the convenience of only having to add one item to the virtual shopping cart instead of having to purchase each item individually.

Another popular incentive is to offer free shipping. You can make it available for purchases over a certain amount or to customers that do enough regular business to reach an elite status.

The most important thing is to do plenty of research and plan ahead before the ecommerce development team from a Temecula Web design company has completed the website. You don’t want to make pricing decisions based on faulty information.

Darin McGilvra

Darin McGilvra has been a professional writer since 1997. He currently writes about personal finances, information technology and sports for numerous websites, including mycashtime.com, mchelper.com, and Yahoo! Sports.

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