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5 Steps to a Smarter Online Pricing Strategy | Total Retail

There are few things as important as your pricing strategy. Get it wrong and your business won’t survive. Get it mostly right and reaching your goals will be more difficult than necessary. Get it right and you’ll pave a smooth path to success.

The internet and smartphones have enabled consumers to easily compare prices across dozens of retailers in mere seconds — even while in-store. But don’t despair! While it’s true the prices you advertise will be compared, you don’t always have to have the lowest price to win. You just have to have the smartest price.

Increasing price volatility in the marketplace and ever-more intricate online pricing policies from product manufacturers have made setting a digital pricing strategy a much more complex task. However, every challenging task your business faces is an opportunity to do it better than your competition. In the spirit of opportunity, here are my top five considerations to keep top-of-mind when devising your pricing strategy:

1. Commit to price as many products as possible.

Our research found 85 percent of online shoppers will leave a durable home goods store’s website and go to another if pricing isn’t displayed. If you’re afraid to show a price on your website because it might be too high, you can put that worry to rest once and for all. Consumers report they automatically assume the price is too high when prices aren’t displayed.

While showing prices online is extremely important, it doesn’t have to be all or nothing. You can begin in increments — e.g., one brand at a time — knowing that showing some prices is better than none. You can earn returns on your efforts as you go.

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5 Steps to a Smarter Online Pricing Strategy – Total Retail.