Pricing Strategy

[VIK007]

Hi All,

Just after a bit of advice with regards to a pricing structure / strategy.

We retail more than whole sale at the moment but looking to go more towards wholesale in the new year.

currently trade on ebay, website and amazon.

i was wondering what is your experience with how to price items?

Should all three platforms have the same price? or is it okay to have it cheaper on the website as less costs there?

 

[Billmccallum]

Hi All,

Just after a bit of advice with regards to a pricing structure / strategy.

We retail more than whole sale at the moment but looking to go more towards wholesale in the new year.

currently trade on ebay, website and amazon.

i was wondering what is your experience with how to price items?

Should all three platforms have the same price? or is it okay to have it cheaper on the website as less costs there?

As a customer, I would be confused why you would offer the same product at a different price!!!!

 

[VIK007]

Thanks for the reply.

Yes that is fine...i will be sure to offer the same price for items on all platforms.

Do you think it is best to reduce the price per item or offer customers a discount on bulk quanity?

For example--- scenario 1.

1 ball = £4.99
buy 6 balls and each ball will cost you £3.99
buy 10 balls and each ball will cost you £2.99


Or Scenario 2.

buy one ball for £2.99
or 10 balls each for £2.99

What seems the best route to take??

 

[Billmccallum]

Thanks for the reply.

Yes that is fine...i will be sure to offer the same price for items on all platforms.

Do you think it is best to reduce the price per item or offer customers a discount on bulk quanity?

For example--- scenario 1.

1 ball = £4.99
buy 6 balls and each ball will cost you £3.99
buy 10 balls and each ball will cost you £2.99


Or Scenario 2.

buy one ball for £2.99
or 10 balls each for £2.99

What seems the best route to take??

From a consumer point of view, I dont want to feel that I'm being penalised for just buying one item, so it would annoy me to see a promotion that means someone who buys ten can get the same product for almost half the price, but a 3 for 2 offer would seem reasonable.

From a business point of view, what's the objective of reducing the price?

a) encouraging new customers to visit by offering promotions
b) encouraging existing and new customers to buy more when they do visit
c) getting rid of excess stock

If you have existing customers who are return buyers, then target them with small discount vouchers targeted at slow moving stock or end of lines rather than larger discounts on lots of things.

If the aim is to increase sales with all visitors, it does not always follow that this increases profitability when you lose most of your profit margin on the promotion. Targeting new customers with a one off discount voucher, much like morrisons or sainburys "spend £40 - £60 and get 10% off all purchases".

the only time I would use your scenarios would be to get rid of excess stock.

Just my opinion, for what its worth.... Happy New Year

 

[VIK007]

Happy new year

Thank you for your opinion. Notes taken.

aim is to increase sale for new and existing customers. I want customers to return to my site to make purchases as opposed to making purchases via eBay/amazon where I incur fees.

My products are low valued items with average price being £10...

So based on this I'm trying to move traffic to the site and give all customers a fair price?

 

[Billmccallum]

Happy new year

Thank you for your opinion. Notes taken.

aim is to increase sale for new and existing customers. I want customers to return to my site to make purchases as opposed to making purchases via eBay/amazon where I incur fees.

My products are low valued items with average price being £10...

So based on this I'm trying to move traffic to the site and give all customers a fair price?

Might be worthwhile looking at loyalty points, same price as ebay/amazon, but "collect 100 points for a £10 gift voucher"....