- by Kusum Motiani
“The moment you make a mistake in pricing, you’re eating into your reputation or your profits.” – Katharine Paine
It was found by Harvard studies that if there is 1% improvement in the price of your product, you can add up to 11% in your profits. Thus, it proves that pricing is the most significant component to maximize your revenue. The price not only affects the revenue, it is also a major factor in branding and reputation.
A buying decision is usually influenced by price. Anything too low or too high can be difficult to sustain in the long run. It is for this reason that the pricing decision holds utmost importance for retailers. Often, retailers complain of leaving money on the table because of inaccurately pricing the products. If this is something that you relate to then, applying custom pricing strategy could solve the problem for you.
Drafting Custom Repricing Strategies is not a Rocket Science if you are Using Reprezzo!!!
What is right as per your business logic?
Not all businesses are same and for your unique business, you need to customize your pricing strategy as per your business logic. Reprezzo is a great tool in which you can customize your pricing strategy easily using the below mentioned parameters:-
Minimum / Maximum Price
You can easily define the minimum and maximum price for your product. This means that even if your competitor goes below the minimum price you have mentioned, Reprezzo with make sure that your product price doesn’t go below that price. By setting up maximum price you can ensure that your price doesn’t go above a level when there is no competition.
By How Much You Want to Beat Your Competitors?
Beat your competitors by fixed amount or percentage using Reprezzo. Select “match price” to match your price to the competitor’s price. Also you can select the option “Beat me by” and mention by how much price or percentage you want to beat the lowest price product.
When Competitor’s Product Price is below the Minimum Price Mentioned by You
In this case, you can select “Use Minimum Price” so that your product price doesn’t go below the level mentioned by you and gets sold on a loss. Well, you can also choose “Do Not Reprice” or “Ignore Competition” if you don’t want your product price to change in this situation. Even if you want your product price to remain at the maximum level mentioned by you, just select the option “Use Maximum Price”.
Using Reprezzo, you can even decide with whom you would like to compete. For example, if you want to compete with only FBA merchants having more than 75% of seller rate, you can select the parameters accordingly in your custom pricing strategy. You can also select your competitors based on the product condition you are offering. For example, if you are selling a new iPhone then the price cannot be lower than the price of a used or refurbished iPhone.
Buy Box Winner
If you are already a buy box winner, you don’t need to lower your price because there are maximum chances of your product being sold and you would not like to sell it on a lower price, right? If you enable the option “Don’t Lower My Price” under Buy Box Settings, your product price will not decrease if you are a “Buy Box Winner”.
Excluding Amazon as a Competitor
If Amazon is also selling the product which you are selling, you have the option whether you want to compete with Amazon or not. By excluding Amazon, your product would not be repriced according to Amazon’s prices.
Compete With Merchants Qualifying for Buy Box
If you are enabling the setting “Featured Sellers Only” you will be competing with those merchants only who are qualifying for the Buy Box.
The Bottom Line
Having a good understanding of these parameters, would definitely help in pricing your products smartly and achieve desired results. With such an extreme customization in Reprezzo, every merchant selling on multiple marketplaces can benefit out of it. It is more than an ordinary repricing tool as it gives you the complete insight of the price changes done in past and their effects, so that you can take smart decisions and ultimately win the buy box resulting to more sales and profit.
Get started with Reprezzo today, and experience the growth of your e-commerce business you have always aimed for.