1. Know Where the Market Is Heading
Do you regularly look up industry news, read white papers, and keep track of market trends and the introduction of new or improved products? If you don’t, how will you spot patterns that may impact the demand or future sales of your product – and ultimately your pricing?
A change in the market is one of the main factors which is likely to prompt you into making a price tweak. For example, if your product is seasonal, such as summer clothing, one lousy season weather-wise will influence sales – and prices & start using some of the best amazon product finders to discover seasonal products.
2. Monitor Your Prices
Not only should you be monitoring the market and know where it’s heading, but also your product prices on an individual basis. In other words, singularly, are each of your products profitable? This is different from looking at your profitability as a business as a whole.
Remember that your revenue goal – which is part of how you decide on your profit – should be contributed to by all products, not just one or two best sellers.
3. Raise Your Prices Regularly
So, let’s assume that you have set your pricing, you’re keeping abreast of your competitors, are aware of any new to market products and your product is selling at a steady rate.
The straight answer is that you should never be afraid to test new prices, offers, or combinations (such as bundles – more on that shortly) that will potentially help you sell more products and ultimately increase your profit.
see your competitors increasing their prices in line with yours you know you’ve made a positive change that works!
If a particular price or offer doesn’t work – don’t panic, just try something new. Continually testing and monitoring is essential so that you remain competitive within your niche – but you also make the profit you deserve.
4. Lower Your Prices Only When Necessary
Lowering prices is generally not a good strategy – unless it’s done for strategic reasons. For example, you may want to try and grab the market share quickly, and having a super competitive price will do that.
Maybe your competitors have all lowered their prices, and you are merely following suit – although that doesn’t necessarily mean you should.
Perhaps you have excess stock to get rid of or a discontinued line. These are all legitimate reasons why you may feel that you have to lower your price.
The practice of raising your prices and testing different offers won’t be a success all the time. If you price too high, you will potentially miss your target audience, but that doesn’t necessarily mean you must automatically lower your pricing to the original.
Instead, keep your price high, but add something for free to tempt consumers to try your product. This also does the job of generating interest in your product and of course, your website. Everyone likes getting something for nothing so by adding a freebie, your customer feels like they are getting more value for the higher price they are paying – and they are not so concerned about paying it!
5. Use the Bundling Pricing Strategy
‘Bundling’ happens all the time, right under your nose, yet it’s likely you don’t even recognize it as such.
It’s where you see multiple products sold as a bundle, for a single price. For example, a pack of three t-shirts, five pairs of socks, and two pillows. Or related products such as a brush and comb set, shampoo and conditioner, and sometimes complementary products such as a handbag and a purse or a handheld computer console with a game.