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eCommerce: The Importance of Setting the Right Prices

October 11, 2019 in Blog

Remember the last time you visited your favorite shop? Let’s remember those moments together and see how it relates to e-commerce pricing.

You went into your favorite store, gazing through the stalls briefly, touching a couple of the items for the feel and texture. Suddenly, you found your perfect match. You grab it and place over your body to see if it really looks great on you. You loved the item and the only thing between owning it is the price tag. You find the price tag after a quick search, flip it, and check how much it’s worth.

Yikes!

It costs a lot. It’s not a bargain, it’s not a deal so you give up, and probably leave the shop after similar experiences.

Now, this is a quite common offline shopping story and the example here was mainly for the fashion industry, but if you think that the experience is different in e-commerce you’re wrong! The decision process is way faster than that.

Because in e-commerce pricing, the prices are right there in front of your eyes with the product name, images, and descriptions. Therefore, the e-commerce pricing of any product is one of the most crucial qualifiers when consumers start browsing that product.

Now what?

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2019 PriceEdge Retreat

September 30, 2019 in Blog

Two weeks ago, the Stockholm and Bucharest office spent a couple of great days together in Sicily outside Marsala, to work together, reconnect, and plan out our growth plan for the next 12 months. We set up camp in a fantastic Airbnb where we worked, cooked, and shared stories together. As a team, we wanted to celebrate our success, and spend some time away from the everyday hustle, to think about our company vision, and work on strategies for the future.

A retreat with coworkers can test the culture of a company, but for the Price Edge team, it felt more like a family reunion than a company event. We already spend time with each other out of the office, but the benefit of going on a retreat is that it encourages rewarding conversations and collaboration in a new, relaxing environment.

Looking Toward the Future

Our company trip was a roaring success, and we look forward to putting the conversations we had in to work. We’re already looking toward the future with excitement as our team grows quickly to meet the demands we have from our clients.

Company get-togethers are one of the best ways to keep your team engaged and highly motivated. It also helps to bond further between team members while having fun in a different environment.

You can check out some of what we got up in our pictures below.

 

5 Fatal ECommerce Pricing Mistakes We See People Make

September 19, 2019 in Blog

Anyone who runs or has run any type of an eCommerce business can confirm:

Pricing can be an extremely tricky task to do right.

There are various things that eCommerce businesses need to factor into their pricing such as the value of the product, competition, and current marketing trends.

Unfortunately, many eCommerce businesses underperform because they make pricing mistakes that negatively impact their business. These mistakes result in them creating price wars and losing customers’ trust.

For this reason, we’re going to share with you 5 fatal eCommerce pricing mistakes we see people make in their business. So, you don’t have to do the same mistakes.

Let’s get to it.

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Dynamic Pricing & AI: The Future of e-Commerce

August 14, 2019 in Blog

Apart from marketing, managing inventory, and taking care of logistics, as an online retailer, you must also determine the best price point for your products. This can be a daunting task because calculating your prices and staying on top of managing supplier costs takes time – time you could be spending performing other tasks for your business.

Not to mention the long hours you spend at the computer analyzing competitors’ pricing models and determining your customers’ perceived value of the product. But there are advanced strategies you can use to make pricing your products easier and more efficient: dynamic pricing and artificial intelligence (AI).

What is Dynamic Pricing?

The concept of dynamic pricing is to offer the right price to the right customer, for the right product, at the right time to increase your business’s revenue and profit. 

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4 Key Insights from EPP Monetized, the B2ME Pricing Forum

July 10, 2019 in Blog

EPP Monetized, a gathering of the B2ME pricing community, is one of the latest & greatest events for pricing experts, pricers and pricing software vendors in Europe. In particular, the event gives pricers the opportunity to network and learn from peers, industry leaders and solution providers that can help extend, scale and grow their businesses.

Last week (July 3-5, 2019), parts of the Price Edge marketing & implementation team travelled to Amsterdam and Johan Cruyff Arena to network with and learn from some of the leading pricing experts in the B2ME pricing world at the EPP Monetized Pricing Forum.

Joining over 60 attendees, 30 speakers, and multiple exhibitors at the event, we experienced more than 25 hours of content, and took part in over 20 hours of exhibiting across a three-day period.

Here are our four major takeaways from the conference:
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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 »