Markup pricing as pricing strategy
If you need to determine pricing for multiple products in a fast and efficient way, the markup pricing strategy is the go-to pricing strategy for you. The relative simplicity and scalability of this technique makes it a logical choice for many companies. This pricing technique (also known as cost-based pricing) is based on adding a […]
Price signaling as part of your marketing mix
How to use price signaling in marketing? It doesn’t matter if you’re a price signaling expert, or hearing this term for the first time. If you have a product with a consumer base, you are already practicing price signaling, even if you don’t know it. Price signaling plays a vital role in how people perceive […]
Pricing over product life cycle
Understanding the product lifecycle helps organizations to make better pricing decisions. With clear pricing decisions you ensure that the product survives the cut-throat market competition and stays afloat no matter how challenging the situation gets. By pricing over product lifecycle you ensure that the buyers are enticed to choose a brand over the others time […]
Promotional Pricing Strategy
Promotional pricing strategy aims towards increasing brand awareness and attracting customers by offering massive discounts and deals. The market strategy creates a perception of time-based scarcity in the minds of the consumers.
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Recommended Retail Price and How to Use it Effectively
In today’s extremely competitive market, what does it take to make your sales figures rise? Let’s be honest: it’s much more than simply offering an attractive product. Because competitors can even reach your target audience from the other side of the globe, you’re facing more competition than ever before and you need to find ways to stand out.
Understanding Customer Lifetime Value (CLV) in e-commerce & retail
The customer lifetime value (CLV) is a valuable metric that shows the total amount of money a business expects a customer to spend on products and services throughout the customer relationship. Businesses need to know who their most valuable customers are and customer lifetime value is an important measure in determining that. Smart marketers are […]
How big of a difference in ecommerce prices is noticeable?
Have you thought about how big of a difference in ecommerce prices is noticeable to consumers? Have you ever wondered how some businesses can effortlessly increase their prices little by little? How do they do that? Well, Weber’s law enables them to do it, and many marketing and pricing experts absolutely swear by it. Go […]
Five good pricing strategy examples and how to benefit from them
Pricing strategies are the main profit drivers in eCommerce. As price is the key detail consumers compare in eCommerce, pricing strategies should be your number one focus area. Building winning pricing strategies is easy: find out how your customer value is delivered and ensure your pricing is part of it. In this article we introduce five best pricing […]
What is market cannibalization (and how to avoid it)
It is all too common for big brands to experience market cannibalization when they start marketing new products – this happens when the new product launches lower the sales of existing products from the same company. Having the right pricing strategy is vital for businesses, but it is a point of concern when they experience […]
Using machine learning to calculate price-elasticity
Machine learning in price and profit optimization Machine learning refers to the study of computer algorithms that improve automatically through experience. It is seen as a branch of artificial intelligence and it focuses on automating analytical model building. It is based on the idea that systems are able to learn from data, identify patterns and […]