Happy holidays from all of us at Price Edge 🎉 And big thanks to partners, customers, and team for another great year!
This shouldn’t come as a surprise, but we humans aren’t always rational creatures. Sometimes we make choices based on sound reasoning and logic, and sometimes based on our emotions and our “gut feeling”.
When pricers set prices assuming an “economic” model customer (using rational choice theory), they risk missing out on the best pricing strategies.
Shoppers don’t always carefully consider the quality of a product, its relationship to other products on the market, or the correlation between its price and its actual value. Sometimes they make purchasing decisions based on whether a product is made to look like a great deal, or whether it seems like it might sell out quickly.
This unpredictability can complicate the work of setting prices in eCommerce stores. Fortunately for eCommerce marketers, there are several psychological “tricks”–we prefer to think of them as good strategies–that can make customers more receptive to certain prices.
Here are some of our favorite strategies:
Advantages of PO&M software: Three steps to help you find the right oneDecember 5, 2019 in Blog
Convinced that adopting PO&M software is the next step on your journey to pricing excellence? Then your first task is to figure out which one will work best for you and your pricing team, and then to evaluate the benefits of using a PO&M software.
There are hundreds of tools listed in Capterra’s price optimization software directory alone, not to mention on the market as a whole. The available features range from simple price data management to full-blown price optimizations & process automation.
The three steps outlined below will help point you in the right direction so you can start drawing up a list of PO&M options and their advantages that will lift you and your team up rather than weighing you down.
eCommerce pricing: How to stay competitive without loosing profitsNovember 13, 2019 in Blog
Profit is the driving force behind any retail business! The bottom line of your business is to grow your bottom line. You need to make money in order to keep your business afloat, but you also do not want to price yourself out of the marketplace by pricing your merchandise too high.
In today’s retail world, eCommerce accounts for over $3 trillion in overall sales and you can’t afford to pass up your piece of the profit pie! Digital technology now makes it possible for customers to compare prices on the items they want at many different retailers in seconds, and most customers will purchase the item they want from the retailer who is offering the most competitive price.
So, how do you ensure you are pricing your merchandise to sell?
What is Price Optimization & Management and how should you choose the right PO&M solution for your business?
‘Price Optimization & Management’ or ‘PO&M’ for short, refers to the technology and processes that an organization uses to efficiently manage and optimize the price of its products and services, both external and internal, including actions such as:
eCommerce: The Importance of Setting the Right PricesOctober 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.
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.
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 MakeSeptember 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.
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.
4 Key Insights from EPP Monetized, the B2ME Pricing ForumJuly 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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