Post by account_disabled on Mar 6, 2024 7:26:54 GMT
Pricing strategies are essential to increase digital store sales. A shop that you created to get noticed by potential customers with the greatest possible care, choosing the best hosting and the appropriate theme. Why is product price important? Simple, you position yourself. pricing strategies You position yourself compared to the competition and provide information on the quality of your product. Also because in this way you can manage one of the key points to influence public evaluations , namely the information relating to economic data. Sometimes the decisions of the people you want to reach are not linear and rational, they follow impulse and emotion. Pricing strategies help work in this direction. Do you want some examples? Value pricing strategies Subjects Value pricing strategies Conquest of the market Saturation price Dynamic pricing strategies Relationship with competitors This strategy for finding the right price for the product or service pushes you to choose the price based on the consideration that your customers have for what you offer.
For example, Ferrari or Apple impose a value-based pricing strategy . You basically Venezuela Phone Number decide the price based on how much they are willing to pay. You don't (only) evaluate the company's costs and objectives, you don't decide the price even by observing the competition. In some cases the goal is to lower the price compared to recover with an increase in volume. But this is not the case. Here the only useful reference is how much the customer is willing to spend. Once you have defined your customers' willingness to pay more to have that product you can start playing with marketing to add useful reasons to obtain exactly that good and not others. Be careful, cost based on value has limits: it must be synonymous with objective or subjective quality for the user, so you must communicate this surplus and make people perceive why it costs (even a lot) more. Must read: how to create a pricing table on WordPress Conquest of the market elasticity of demand Known as penetration pricing for competitive markets . In practice, it is a solution that allows you to start with a low price and then increase it over time.
That is, when users have already become familiar with the good you offer and are not willing to change their habits. Even when you implement a pricing change. Now the game is over, I have purchased an asset several times and if the value changes slightly I won't go back . At this point we need to question the elasticity of demand . That is, how much the demand changes with the change in price. This condition works well with products that target an audience that is price sensitive and makes decisions based on this parameter in a very competitive market. That is, with a large number of actors jostling. In some cases the low penetration price is linked to cross or upselling that revolves around the basic product. For example, a technological good may have a low price because the real profit is in the sale of accessories. A bit like what happens with Woocommerce : the structure is free but the plugins are paid. The price of penetration of a market has a limited time. It helps to get noticed, to establish itself as a choice. Then it is slowly destined to rise to increase profits. This condition is not sustainable for long and, above all, it must be carefully planned if you do not want to make a loss. Saturation price The exact opposite of the previous solution. We are not talking about a pricing strategy that goes up but down.
For example, Ferrari or Apple impose a value-based pricing strategy . You basically Venezuela Phone Number decide the price based on how much they are willing to pay. You don't (only) evaluate the company's costs and objectives, you don't decide the price even by observing the competition. In some cases the goal is to lower the price compared to recover with an increase in volume. But this is not the case. Here the only useful reference is how much the customer is willing to spend. Once you have defined your customers' willingness to pay more to have that product you can start playing with marketing to add useful reasons to obtain exactly that good and not others. Be careful, cost based on value has limits: it must be synonymous with objective or subjective quality for the user, so you must communicate this surplus and make people perceive why it costs (even a lot) more. Must read: how to create a pricing table on WordPress Conquest of the market elasticity of demand Known as penetration pricing for competitive markets . In practice, it is a solution that allows you to start with a low price and then increase it over time.
That is, when users have already become familiar with the good you offer and are not willing to change their habits. Even when you implement a pricing change. Now the game is over, I have purchased an asset several times and if the value changes slightly I won't go back . At this point we need to question the elasticity of demand . That is, how much the demand changes with the change in price. This condition works well with products that target an audience that is price sensitive and makes decisions based on this parameter in a very competitive market. That is, with a large number of actors jostling. In some cases the low penetration price is linked to cross or upselling that revolves around the basic product. For example, a technological good may have a low price because the real profit is in the sale of accessories. A bit like what happens with Woocommerce : the structure is free but the plugins are paid. The price of penetration of a market has a limited time. It helps to get noticed, to establish itself as a choice. Then it is slowly destined to rise to increase profits. This condition is not sustainable for long and, above all, it must be carefully planned if you do not want to make a loss. Saturation price The exact opposite of the previous solution. We are not talking about a pricing strategy that goes up but down.