If you search for any product on the internet like- mobile phone, clothes etc. then on the front page you will saw the websites of online retailers instead of any information about those products.
It is just a small example of the width and depth of the online market. In this ever-increasing competitive world, the fixation of the price is not everyone’s cup of tea you have to carefully observe different trends of the market to get such a magical figure which can attract the maximum customers as well as ensure your profit. Retailers have to put too many efforts on pricing strategies to survive in the competition and make the profit.
Basic retailer pricing strategies are:
- Product position
- Competition
- Customer perceived value.
Price optimizer software is also available in the market which helps the merchants to decide the competitive prices of products offered. It helps the businessmen by providing accurate price calculation, data protection and increased sales. Retail pricing is very vital in case of the e-business as we have to beat two targets by one arrow first is the maximum customers and second is to make a reasonable profit as well.
There are different types of pricing strategies-
Retail Pricing:-
It is decided by the retailer. In this price, the retailer adds some extra amount in the cost price for taking profit. If the customer needs any product in a small quantity then they have to purchase the product on the retail price.
MSRP:-
MSRP is Manufacturer suggested retail price. Sometimes the retailer has to sell its product on the manufacturer price. MSRP used for high pricing things like mobile phones, Televisions or other electronic products. This is used to make prices of products the same at every place. Sometimes it is also known as RRP (Recommended Retailer Price).
Competitive Pricing:-
Retailers add some attractive benefits to compete with peers and endeavor their best to offer better service. Many platforms are selling the same products but the prices differ according to the quality of the product. Retailers decrease the price to increase the business and compete with competitors.
Multiple Pricing:-
Retailers sell more than one product in the price of a single product. This technique is used some times to increase the business. It also aims to sell the old product or stock clearance. By this technique, customers attract towards the goods.
Physiological Pricing:-
Such a strategy used to hijack the logic and present the actual price in a different way.
Discount Pricing:-
During the off-season, the retailer sells his good at low cost and makes the customer happy. This is a great strategy for the business. This price is lower than the market price to increase the business. We all get attracted to the discount price. But is a temporary decrease in goods and services. This strategy used to increase sales incomes.
How to Decide Retail Price?
In the offline market, a Shopkeeper decides the retail price, after calculating the profit but in the case of the online market, the computation of the retail price is a very complex task.
The platforms have to observe all the factors of the market very carefully to decide a reasonable retail price, as we all know that -pricing is the main tool to beat the competition in the online market.
