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How to Find Your Competitor Pricing
Regardless of whether you are selling a product or a service, if you want to compete in the market, you'll need to know your competitors. Knowing your competitors includes knowing what they are selling, how they are selling it, and of course, how much they are selling it for. Once you have all this information, you can properly benchmark your company against competitors. There are three ways that you can find out what your competitors are charging your potential customers: 1. Software and Tracking Tools There are a variety of tracking tools and software packages that you can use to track your competitors' pricing, such as OP's Pricing Optimization app. This technique allows advanced AI software to scan market prices and assess your customer base to target specific customers with optimized prices in order to boost your sales. 2. Manual Price Monitoring Manually follow your competitors online or sign up for their regular newsletters and email marketing campaigns. This process is more tedious and opens you up to human error, but it could be a good way to stay in touch with other competitor strategies as well. 3. Call Competitors for Pricing Call into your competitors and ask them—as a potential customer—how much they are charging for the same products or services. You can even ask them for quotes using a personal email address. Otherwise, if you are brave, you can walk into their shop and ask them face-to-face. Conclusion Once you have all the information you need, you can put together a pricing strategy that will put you a cut above your competition. It is worth your while seeing pricing as a strategic tool rather than a guestimate as this will give you competitive context and advantage.
Asked a year ago
What Is Geographical Pricing and How Can It Increase Profit?
In order to maximize profit, businesses often adopt different pricing models, and depending on a business's offered products and services, these pricing models will work better in some circumstances than others. This post will look at geographical pricing strategies and how this pricing model may be what your business needs to find success. Geographical Pricing Strategy Basics Geographical or localized pricing is a strategy to increase profits by charging a different price in different areas where the economic conditions may be different. This pricing strategy will charge a higher price for the same product in an area with higher average incomes and lower prices in an area with lower average incomes. The cost of geographical pricing may also be based on shipping costs, import costs, and local taxes. This tactic allows for higher margins on high-demand items, which can lead to increased profitability for retailers. Advantages and Disadvantages of Geographical Pricing Advantages of Geographical Pricing Increases profits by charging customers from different regions suitable pricesAllows you to increase the price of a product for high-demand itemsAllows expansion into new marketsIncrease volume of orders from a customer at a lower cost Disadvantages of Geographical Pricing Increases administrative burdenMight negatively affect customer loyaltyMay increase customer acquisition costsGeographical pricing has come under fire in the past because it can be seen as discriminatory - something known as geographical discrimination Is Geographical Pricing Right for You? For businesses conducting internationally, international pricing makes sense. If your products are sold to customers on a global scale, you may want to consider using a global pricing structure. On the other hand, it doesn't always make as much sense for local businesses conducting localized operations to adopt a geographical pricing model. Deciding on the right pricing model can be challenging. Thankfully, there are apps like OriginalPO that are more than happy to help out.
Asked a year ago
Tiered Pricing vs. Volume Pricing: What’s the Difference?
Pricing is one of the most important aspects of any business as it is one of the top factors that influences repeat sales and customer retention. There are two basic pricing strategies: tiered pricing and volume pricing. What Is a Tiered Pricing Model? Tier pricing, or tiered billing, is a popular and common way to sell products or services. This tiered discount structure is based on the "price per tier" which defines the cost for each product category. The main benefit of tiered pricing models is that they provide customers with a sense of financial control and assurance that they will not be paying too much for their service. The drawback of tiered pricing is that some customers may wish to mix and match features that are locked away in higher-priced tiers - dropping some features and gaining others. What Is a Volume Pricing Model? Volume pricing models are systems that offer discounts on purchases for larger orders. This model can be used by manufacturers, wholesalers, and retailers. Volume pricing models offer many advantages, including increased profit margins, improved customer relations and retention, and establishing a competitive advantage. However, there are also disadvantages, such as estimating demand for each product and providing the right quantity of inventory. Which Pricing Model Is Right for You? Pricing strategy depends on the type of your business and the type of product you are selling. It also depends on how long you are planning to maintain the same pricing strategy. To help you find the best pricing model for your online business, consider using an app like OriginalPO.
Asked a year ago
Reduce Shopping Cart Abandonment Rates on Your Shopify Store
There are different techniques to reduce shopping cart abandonment depending on the type of store you run. In this post, I'll explain which tactics apply to low volume / high margin product businesses, and which to high volume / low margin product businesses. These are not the only tactics of course, but my goal is to provide you with some mental model for how you could also think about it. Reduce cart abandonment in low volume and high margin Shopify stores Low volume and high margin stores may include furniture, bikes, electronics, auto parts, mattresses, fashion, art, or B2B wholesale / industrial machines, just to name a few. You need to focus on 1 on 1 conversations to close these sales. You'll see most content on the internet will try to convince you of using automated email series, or exit-popups, and Facebook re-targeting (which are all great and you should employ those as well) but please don't forget about a 1 on 1 conversation. If you're selling a $2,000 machine or a $250 pair of pants, chances are a customer wants to speak with someone from your business before making this purchase. ESPECIALLY if you're a small business or a business with a lesser-known brand name. Note: big brands can get away without having 1 on 1 conversations even for their highest margin products because their brand has established trust. Customers know what to expect from brands like Gymshark, Samsung, Logitech, etc. This is why we built the Shop Phone Shopify app. Our data has shown that customers are 5x more likely to make a purchase after abandoning their checkout (dropping their basket without paying) if someone personally contacts them. In our store, we saw order recovery go from 10% to 55% when we started calling and texting customers and asking to offer pre-sale support. Additionally, and even more impressive, we saw that abandoned checkout customers who are recovered, are much more likely to become our best customers over time. In one of our merchant stores, we even saw that number to be 8 out of their top 10 highest lifetime value customers to be abandoned checkouts customers who were contacted over the phone, and then who became best customers over the next 12 months. Increasing conversion rates As for increasing conversion rates, there is also the idea of giving your customers a 3rd action choice for "maybe" customers. Right now, customers will either click BUY if they're a "yes" customer. Or they will click CLOSE if they are a "no" customer. But for "maybe" customers there is no MAYBE button. You can think about creative ways to create this kind of button, such as a "request callback" or "remind me later" or something to this extent. This way you create a super simple and easy way for customers to leave their phone numbers and/or email addresses so you have those leads generated and can use follow up tactics to recover their sales later. It's also just a great way to create better engagement on your website - for example, "call me back" buttons can create a massive trust for your business if you do in fact call those customers back immediately. Reduce cart abandonment in high volume and low margin Shopify stores High volume and low margins Shopify stores may include smaller items like clothing, phone cases, basic electronic accessories like cables, linens, combs, toothbrushes, general-purpose items, etc. If you're in a high volume and low margin business you need to rely more on automated tactics, like abandoned checkout recovery emails, or social re-marketing through re-target only Facebook ads. The reason you should rely more on automation tactics and email is that these products are low margin, so spending too much of your 1 on 1 time to recover these products will be a waste of valuable time. You can still use Shop Phone if you have low volume, or you can use Shop Phone by increasing your alert threshold (so you're alerted for abandoned checkouts over $X, or some amount that's high for your store average). But mostly you should rely on automation, like running retargeting ads on Facebook, if you can afford it. But put a limit on how much you're willing to pay per impression because you don't want Facebook eating away at your profit margin. Retargeting ads can be profitable if you sell subscription products or if your store has a high retention rate where you can earn back the ad spend over time. You can also try browser push alert companies like PushOwl, assuming customers give you permissions and subscribe to your push alerts before they started building their cart and proceeding to your Shopify store's checkout pages. I hope this post was helpful.
Asked 2 years ago
The Benefits of Using a Product Review App on Your Shopify Store
There are many ways to increase the conversions on your Shopify store. However, arguably one of the most effective ways is to show social proof of customers who praise your products, service, and brand. And the easiest way to generate social proof regularly and at scale is to allow customers to leave reviews on your store using a Shopify product review app. People, by nature, are social animals. We enjoy listening to and interacting with others. We value the opinions of other people and seek guidance from them. Oftentimes, people will search for the reviews and opinions of others before committing to a purchase. The reviews that customers leave about the quality of a product and the service they received are far more likely to be genuine, honest, and trustworthy than what the store owners write themselves. Therefore, allowing your customers to review your store is a great way to build trust with your audience, generate conversations about your store, create a sense of community, and even improve your store's appearance on Google (SEO) Although not all reviews may be positive, using negative reviews as a way to prove your customer service skills and commitment to customer satisfaction may play in your favor. By responding to negative reviews professionally and competently, you may be able to not only regain the trust of the person who left the review but also earn the trust of those who may read your response. Shopify store owners who choose not to use review apps We've seen stores that don't allow customers to write reviews because their products are bad, and customers tend to complain about them. These stores don't sell on Amazon for the same reason... So, while there may be justified reasons not to use a review app on your Shopify store, you should consider that reviews have become an eCommerce industry standard. If you don't show any reviews, you're probably putting customers off, and you are missing out on one of the most powerful marketing tools out there… word of mouth.
Asked 3 years ago
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