Often thought of as the elephant in the room, price can sometimes be a sensitive subject for companies. Whether you’re trying to be the cheapest on the market or you’re positioning yourself as a luxury retailer, price is something we must be aware of and monitor in relation to sales.
Marketing Factors that Impact Conversion
People search in several ways and once they are provided with results either via a search engine, such as Google, or a list of available products on an ecommerce site, the way we filter the results will vary considerably from person to person. You may find that one customer will search for a specific product via Google and look for a retailer that they know and trust, whereas others may search using a general term and be attracted primarily by price. You could have the best mobile-first website and a wide range of products but if you’re not competitively priced online, you may struggle to convert. If, however, you’re selling a product that is considered an emotional purchase or luxury item and you’re priced too low customers may not trust the quality of the item and think twice before buying online from you. Price is one of the most important factors for online retailers and it’s essential that you analyse the market and have a price model that is flexible and adaptable to seasonal opportunities, online buying trends and your competitors.
Are You Competitive Enough?
For some businesses, you may be aiming to be the most competitive on the market, but to sustain this goal, it takes time and real-time decision making. There is every possibility online that you’re the cheapest on the market for a Ted Baker handbag on Monday, but when Tuesday arrives, a competitor has undercut you to steal your sales. This is the nature of modern online ecommerce and you will need to arm yourself with enough information and data to act fast and maintain your competitive price model.
Positioning yourself in the market will also have a knock-on effect in terms of your tone of voice, branding and content marketing strategy. Can you claim to be the cheapest if you aren’t actively changing your prices based on competition and demand?
Are You Too Competitive?
Don’t fall into the false sense of security trapby thinking that being the most competitively priced online will help you to succeed. If you’re pricing items well below the average price online, you’re going to struggle to make a profit. Keeping an eye on your competitors will help you to understand just how competitive you are and if you’re way below every other retailer, you may want to consider increasing your prices slightly.
Adding one or two pounds on the price of an item that is the cheapest online will still mean you’re the cheapest if you don’t exceed the price of your next cheapest competitor.
How to Get the Balance Right?
Now that you’re beginning to understand the ways in which price can make or break your online business, let’s discuss how to get the balance right.
If you don’t have the time or resource in-house to monitor price comparison in real time, seek the help of a digital marketing agency that can work on your behalf and flag up any price decreases or increases that will affect your business from competitors. Hit Search have a wealth of experience working with ecommerce businesses, developing winning digital marketing strategies as well as optimising for conversion. For more information about our services and to speak to one of our team about your business needs, contact us now.
At Hit Search, we have tools that allows us to price match hundreds of individual products and analyse where your business sits in the market. With this valuable information, we can provide you with instant feedback and enable you to adapt your price structure in real time. Let’s work together and optimise your business now!