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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 2 years 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 2 years 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 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
Kate Pauline Galagnara
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