4 questions and answers
A single price at all resources in the particular market – is that correct?
Yes, this is correct! The price should be either the same or very close.
Online prices are the most transparent information in e-commerce, allowing the buyer instant arbitrage! Who doesn’t want to save money? If you run the strategy by having your products in many e-commerce resources that compete with each other in price, and thereby pull the retail prices of your product down, then at the moment your price on the market may be lower than that of other manufacturers, the turnover is growing, you win. What’s next? E-commerce resources lower the price due to their earnings, as a result, less efficient ones either die or stop selling your goods. Only the most effective remains with your product, i.e. the strongest, while also they won’t be very happy with his victory, because during the price war, he did not earn anything on your product. The result of this strategy is that you will be pushed out of the market at the earliest opportunity. You are not a comfortable player!
We recommend our clients to try to keep prices in different online resources the same or close to each other. At the same time, the number of online projects with your products can be exactly the same as you need to provide a competitive logistics service, for example! It can be one – your own project with your price and competing logistics solutions on it. In fact, this is the most successful experience at this time!
Should the online be cheaper than offline?
No and no again! You are communicating with the same consumer. It is convenient for someone online, someone offline, it can be the same buyer, only in different situations!
We recommend our customers to offer a single price for the same product both offline and online! It’s easier and easier! All other reasoning is too complex to be true!
Give offline a chance to survive!
Are promotions and discounts everything online?
Promotions and discounts are primarily information. Information is a way to attract attention. All this is not an invention of the online! Promotions and discounts are the simplest information that works well both offline and online.
Online is a more modern trading mechanism and therefore more informational, it requires more information, requires new formats, which no one really knows yet. All this has led to the fact that promotions and discounts are regarded as almost the only informational tool for e-commerce. This is certainly not the case!
In fact, information is everything! In our new world, it’s called content!
The price should be as bright as possible – “break out” on the product. Is it so?
It all depends on what is most important in your product! As we discussed earlier, content has to go from important to unimportant. If the most important thing in your product is the price, then it should be “ripped out” in the content!
We recommend that our clients pay attention first of all to what else, apart from the price, your product can distinguish! The price is clear! It always works! But there is no cheaper price than free, so this game has its obvious disadvantages! Let’s try another one!
Good luck to everyone in new games in a new reality!