3 Tips to Label Right ‘Pricing’ For Products in Your Shopify Store
The most challenging part of running an eCommerce store is labeling products with the right price tags because it is a significant aspect concerning your store’s success.
Indeed, it takes time to find one “reasonable” rate for your products despite how much knowledge you have as a businessperson.
But, coming up with a pricing strategy is especially tricky when it’s your first time launching an online business.
You need to come up with prices that your users will love and enable you to maximize your profit margins by factoring in all of the costs that you’ll incur (covering marketing costs) while selling the products.
That’s precisely why we’ve created this post. We’re going to jump into the topmost ways that eCommerce companies use and decide which price is most suitable for their products.
By the end of this post, you’ll find answers to every question you are looking for.
So, let’s dive into it.
Number 1 – Understand the Market Trends
It will be helpful to find out how much customers will pay and how much rivals or other stores charge. You can then determine whether to resemble or beat them. Utterly equaling the rates is terrible, though – you must be sure all your expenses – both direct and indirect – are included.
One thing we all need to be mindful of is, prices can hardly be fixed for long. Your expenses, shoppers, and rivals can vary, so you will have to stir up your charges to keep up with the market trends.
Also, keep an eye on what’s going on and regularly talk to your consumers to make sure your prices remain affordable to the maximum part of the audience.
Number 2- Make your Prices Charming
Have you ever thought about why most rates are set at .99 cents rather than just rounding it up? Well, there’s a purpose – people normally pay more attention to the left-hand number instead of the numbers next to the decimal. So $9.99 looks infinitely better than $10!
This is what we call charm pricing and is a tried and tested method used by most retailers. So why wait – check out and alter any round prices, so they cost one cent less.
Number 3: Competition-based pricing
Another thing you can try to boost your sales is to monitor your competitors’ products and rates. This is one simple and very fruitful eCommerce pricing strategy. All you need to do is find a Shopify app inspector to spend time researching your competitors’ pricing practices. It would be enough to look at all comparable products rated high and low so that your analysis spans a whole range. Then take the average price according to your research. Be wise not to rate your products below the average price, as this can hint at a ‘race to the bottom’ among sellers. When this occurs, there are no conquerors!
Decrease your costs from the studied average price, and you’ll be left with your possible profit margin based on that average selling price.
Use Koala Inspector
Koala Apps’ Koala Inspector offers you all the secrets behind every Shopify store.
Using the tool, you can quickly reveal all the methods the store owner uses only in one click, including the number of products, bestsellers, and the price range in the store.
Download Koala Apps’ Shopify Inspector and spy on your competitors’ online strategies in great detail.