Product pricing is critical for your ROI, but it's also essential for your brand. If you offer too many big deals, and you come across as a bargain brand, not enough, and your customers don't think that you're there for them.
It’s a juggling act for sure.
When pricing your products here are few things to keep in mind to ensure you aren't leaving money on the table, (and if you are, it's part of your strategy).
When it comes to pricing your product, many online retailers will start with the markup of 50% and then move the needle from there. If 50% covers costs and makes the right profit, then they' stick with it. Many variables are taken into consideration. And depending on your niche, you'll find that prime spot that makes sense for your profitability.
There are going to be times when you'll want to keep your price low, and the key here is to be strategic and aware when you're doing it. Use the different methods of pricing for web design work, based on product attributes to achieve your financial goals per product.
If you want to attract more customers, consider discount pricing for certain products. You can also implement loss-leading pricing to attract customers into your store for one product, only to guide them towards other products that may be on their wish list.
There are multiple examples of e-commerce stores that took an initial loss because they had a surplus of one item that they choose to give away as a free gift when paired with a purchase. However, over the course of the promotion they came out on top.
You can also use psychological pricing to boost sales. There’s a reason why adding 5.99 is more eye-catching than $6.
The list of pricing methods goes on from bundle to keystone to anchor variations, and it’s up to you to find the style that suits your customers, as well as your bottom dollar throughout the year, and then adjust for promotion periods and to gain customer attention.
Keep in mind that you can have higher pricing than the competition and still have an edge over them. By taking action and providing features like better customer service, more product information, and free written and video tutorials with the purchase.
Pay attention to the products that you need to be more aggressive with when pricing versus those rare items that few people carry and you see a bigger profit margin. And as always -- keep testing to see what gets the best results!