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6 E-Commerce Pricing Strategies to Help You Sell More

June 6, 2019 in Blog

Your e-commerce pricing strategy has a direct impact on how well your online business performs. There are so many things to consider when it comes to pricing such as the cost of your products or services, your customer’s needs, and your competition.

E-commerce businesses often struggle with determining the right prices for their business. They want to price their offerings low enough that customers will purchase, but also high enough that they can make a reasonable profit. For this reason, we’re going to show you 6 e-commerce pricing strategies to help you sell more with your e-commerce business.

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How Profitable Could Your Aftermarket Business Become?

May 13, 2019 in Blog

Why implement new pricing strategies? And why even think about investing in a new pricing software? What is the purpose? Let’s be honest, it is quite simple. The purpose is to generate more profit. Period.

Sure, there are other important reasons too. For example, we all know how overpricing can hurt the long-term brand value and customer loyalty. That matters also. But without that pure financial gain, which is found through avoiding setting prices too low, it would be difficult to justify spending resources on implementing new pricing strategies.

aftermarket profit analysis

The key question, then, is: How large a financial gain could you harvest from your aftermarket? How do you find and implement it? And how can you make that new profit level sustainable over time?

In this article, I will share my thoughts on how to answer these questions. My intention is to share what I have seen and learned during the last ten years as a pricer, a reflection of my own experience of implementing smart aftermarket pricing for multiple B2B and B2B2C companies over the years.

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My Top 4 Mistakes in Aftermarket Pricing. Save Yourself Some Pain & Don’t Make Them Yourself.

November 26, 2018 in Blog

Today I would like to share some of the mistakes I have made during my years in aftermarket pricing. I hope that by reading this material, you will be able to avoid as many of them as possible. I guess I’m trying to write the text which would have helped me when I did my first aftermarket pricing project about ten years ago.

To keep it simple, I decided to make a list of criteria which I think are important if a pricing strategy is to last for a long time. I will zoom into attribute-based pricing strategies. The reason is that those usually give the best return but are also the most difficult to manage.

Before we get into this, just a short reminder that when I write “attribute-based pricing strategies”, I refer to price logic, where physical attributes, such as weight, length, power, brand, etc. are used to set the price. In a nutshell, you create groups of similar parts, and in each group you define which attributes should be used. Then you create the price equation based on those attributes. So here it is, the list of what you should try to avoid if you want your pricing strategy to pass the test of time. My hope is that you will be able to avoid most of these mistakes. Enjoy 😊

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Four pricing strategies for the aftermarket

October 18, 2018 in Blog

In my career, I have been implementing pricing strategies for numerous manufacturing companies. Even though they all are unique, they usually have the following similarities in their portfolios:


They have thousands of parts

There is a mix of manufactured and purchased parts

Some of the manufactured parts are easy to copy, others are not

The cost of the manufactured parts is driven by factors not relevant to the customer; is the product in mass production? Have we switched suppliers? Are there setup costs needed to start production again? Etc.

Few parts represent the majority of sales

It’s dangerous to overprice low selling products, as one high price is enough to damage customer relations


So, how best to price such a portfolio? There are thousands of products, you cannot look at each of them individually. The cost is a terrible base for manufactured parts, pricing one too high is enough to upset and lose a customer forever.

What we have ended up implementing is a combination of strategies, all suitable for different parts of the portfolio. Let me share on a high level what these strategies are. Continue reading »

7 must read books for any pricing professional

October 17, 2018 in Blog

Do you want to learn more about pricing theory? Do you want to be inspired by examples of real-life pricing examples? Do you want to be able to create more effective pricing strategies? Or are you interested in absorbing every bit of information from authorities on pricing

Below you find 7 pricing books handpicked by our pricing specialists which will get you a long way and that we have found extremely useful. This is far from a definitive list, of course, but it’s a great start. Continue reading »

How to use willingness-to-pay in pricing?

September 20, 2018 in Blog

Willingness to pay is the maximum amount a customer is willing to spend on a product or service. Being aware of your customers willingness-to-pay can be the key to a successful price strategy. We will focus here on using willingness to pay in a B2B context.

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Why you need a price management software

August 31, 2018 in Blog

The good news is if you want to get anywhere at within pricing in the early days, you’ll have a handful of Excel files in place.  Which is great. In fact, it’s amazing.

Getting control of your pricing and putting a price framework in place is though. Who wants to run prices by another person and have the time to collect, clean and package the data needed for better pricing? And you did it.

And yet …

It probably won’t be enough. 5 Excel files, 50 sheets, whatever the number is. It’s not scalable. In fact, it may seem like you will everything would fall apart if you left the company.

I get it, I’ve been there. In fact, most price managers have. At one point its simply time to leverage up to a price management software and leave the Excel files behind. You will know when.

Sounds familiar? You’re not alone.

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Why aftermarket business is different

July 12, 2018 in Blog

I have seen it so many times. How companies cure the aftermarket business with the same medicine used for their other businesses.

And guess what… they usually end up giving away margin, losing sales volume, and sometimes even destroying their brand reputation.

Have you seen it too?

So how can you optimize your aftermarket without ending up in any of these pit-falls? Well, the first thing you need to do is understand how your aftermarket is different from other parts of the business.

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Why aftermarket pricing is best done centrally

June 25, 2018 in Blog

Have you also been to that meeting?

The meeting where the local team talks about why they need to own the aftermarket pricing? That they know the market better. How they adapt to the very special situation of their market. How your central pricing is all theory and not reality.

Well… I have been there. Many times. And according to me, the local teams are wrong believing that they are best served setting spare part prices themselves.

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How to build a pricing strategy in 4 easy steps

June 7, 2018 in Blog

For this blog post, we are looking at how to build a pricing strategy in 4 easy steps. We will look at what’s happening today and understand some of the reasons behind failed pricing activities, as well as explain why it’s essential for your business to have a pricing strategy.

What are the benefits of having a pricing strategy?

1. A strategy will give you a set of objectives that are aimed to achieve.

2. It will enable you to understand why you are trying to achieve these objectives.

3. The objectives will have some KPIs (Key Performance Indicators) allowing you to measure and assess what you are doing.

4. It will provide clarity to your pricing and at what frequency you need to reprice.

What happens when you don’t have a strategy?

Often businesses miss out on these benefits because they jump reactively from a pricing need to pricing. The results are as follows. Continue reading »