Get Ahead In The Dropshipping Business With Well Planned Pricing Strategy
Setting up your Dropshipping store alone is not enough to generate sales. Other factors come into play when convincing potential buyers to make the purchase. Pricing strategy is one of them which is a game-changer if you want to get ahead and achieve valuable sales while building a strong customer base.
In this blog, we'll be looking into different strategies that you may try and start using them in your dropshipping business model. Even if they appear to be tricky and confusing to implement at first, the results will be fruitful in the end. Always put a price tag on the product(s) that is appealing to your customers, this is the first step to make sure your customers do not end up closing the window with products that are out of their budget or they feel that they can find it for cheap at some other place. Adopt a pricing strategy that is reasonable and attractive to achieve successful sales.
1. Market Research
If you want to understand buyer behavior and buying patterns then you will need to do in-depth market research. The first step is to do product research. Get into the customer’s boots and analyze the worth of your product by comparing the price with your competitors. Dropping prices lower than your competitors is also not the right thing to do when your brand value and services are better than the rivals. Therefore, it is very important to study the market and know your product’s worth before putting a price tag on it. Using online surveys and other similar techniques to ask your customers the perceived value of your product will help you in deciding the correct price.
2. Playing with the numbers
Have you ever wondered why the products have a price tag with prices like $1.99 or $4.99? This is called psychological pricing (also known as price ending or charm pricing). Market surveys suggest that this technique has a psychological impact on the consumer and they tend to perceive the 'odd prices' as lower than the actual price. A price like $9.99 and 10$ has a negligible difference of $0.01 but consumers look at prices quite differently. Thus, prices such as $9.99 are associated with spending $9 rather than $10. This strategy can be useful in your store which will make consumers believe that they are getting a better deal.
Consumers find it attractive to see the original price that is slashed/discounted. You want to tell your customer that he/she is getting a better deal from your store which gives them a satisfying experience. Displaying the original price makes your brand more trustworthy and transparent which is one of the vital factors in generating sales. This gives customers a sense of security and adds value to their purchase decision that saves them money.
4. Discount coupon and sales
Any customer who loves shopping online likes to avail offers and discounts using coupons. Providing additional discounts using coupons on your store with a specific payment gateway attracts and retains the customer. This gives them a reason to repeat the purchase and come back again in the future. Some customers are discount shoppers or wait for the sale to start to begin their shopping spree. The art of the sale is such that you can control buying behavior and motivate buyers to purchase on your store by carefully scheduling the sale window. You can take advantage of the holiday season or when the consumers are on a break from their busy work life. It takes a good quality product and value-added services to maintain the customer relationship for repeat purchases. The intention of offering a coupon or discount is to encourage the consumer to buy the product again and again.
5. Provide combo offers
What are combo offers? You must have seen offers such as Buy 1 Get 2 free. The model is simple, you price your products in such a way that you cover up the costs of 3 items in one price. This way you can offer your customers 2 free items if they purchase 1 with original price. Price your combo in such a way that when a consumer buys the product(s) individually, it appears expensive. In this way, you can oversell your merchandise. This turns out to be a win-win situation for you and your customers as they are getting a deal that they can not resist. Some of the best combo offer examples are: Buy 2 Get 1 Free, Buy 1 Get another at 50 % off, etc.
These are some of the best pricing strategies for your WordPress and Woocommerce dropshipping store, we hope that by applying these strategies to your dropshipping business would help in generating sales and bring traffic to your store. To make the process of building a dropshipping store from scratch easy, we recommend that you use WooDropship to get a custom AliExpress dropshipping store and take your dropshipping business to the next level.