About 84% of customers cited price as the largest influencer on their purchase decisions.
San Francisco, CA (PRWEB) September 25, 2014
Arguably one of the largest drivers of profits, finding the right pricing strategy is vital for success in today’s hyper-competitive online retail market. Pricing is a concept that is anything but new to retailers, but the ways that they are approaching it are changing quickly. Comparison shopping is now more prevalent than ever, largely due to the rise of new technologies, such as mobile devices. As a result, pricing has become even more important for online retailers of all sizes.
About 84% of customers cited price as the largest influencer on their purchase decisions. Pricing also has a significant impact on other aspects of retail businesses, as it can build or destroy brand reputations. Pricing a product too low can inhibit a prestigious reputation, but pricing a product too high can deter customers from making a purchase. Finding the “Goldilock Zone” of pricing is essential for all retailers in order to sustain a strong customer base.
Price can be influenced by various external factors that affect the supply and demand for products. Changes in seasons affect demand, which can result in a need for an increase or decrease in price. This effect is beyond retailers’ control, but price automation can address the uncertainties present in the industry. Retailers do have a choice in pricing when it comes to adding value, such as fast handling or free shipping. By providing these services, retailers can charge a premium for their products.
Wiser has identified several pricing strategies that are key to online retail success, but there are some that retailers will want to avoid. Wiser’s new infographic shows which ones have been effective for online retailers and the potential downfalls of each. Arie Shpanya, pricing expert and CEO of Wiser, said, “As the online marketplace becomes more competitive, a customized pricing strategy is crucial as a means to differentiate online businesses from the competition and drive profitability.”
Dynamic pricing, for example, is a pricing strategy in which a company changes prices due to market and internal fluctuations to stay competitive and price for profit. By using dynamic pricing, a retailer can keep up with changes in demand, stock, and more. Wiser suggests using strategies like dynamic pricing to maximize revenue and profit.
To view the full infographic, visit http://www.wiser.com/infographic-upandaway
Wiser provides a complete suite of solutions to give retailers, brands, and manufacturers the edge to stay both competitive and most importantly, profitable.
Wiser’s flagship product is WisePricer, a full-featured dynamic pricing and merchandising engine that monitors, analyzes and reprices retail products in real-time. WisePricer enables retailers to boost profit margins and revenue, price with confidence, and improve merchandising through powering the development of a sound pricing strategy.
Wiser also offers a MAP monitoring solution, WiseMapper, for brands and manufacturers to monitor and protect their pricing across the thousands of retailers selling their products.
For more information on Wiser and WisePricer, please visit wiser.com/wisepricer.