“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.”
— Colin Powell
These three power factors, combined with making the right business strategies would ensure success in the long run. The decisions about many important features such as hiring the right candidates, purchasing the right commodities to build your product, and inevitably deciding the pricing factors perfectly once it is done. In this modern era, with the fluctuations in the economy, we cannot entirely depend on strategic pricing. The value of the products keeps changing day by day. The e-commerce products and websites should remain intact with the market dynamics.
The most commonly used pricing strategy of today would be dynamic pricing. It is the most elementary feature in our present economy due to the influence of price on supply and demand. We cannot deny it since every commodity that you see on E-Commerce websites such as Amazon, eBay and Flipkart come under the umbrella of this strategy. All the E-Commerce
giants are leveraging this strategy.
According to Trinity insight, research says that dynamic pricing increases your gross margin at 10%.
If you are going to change the price concerning its real-time value, then you have nothing much to lose when it comes to your market shares. It is how you should be rolling your dices at the end of the 2010s.
Static pricing is when the prices do not keep moving in a sinusoidal manner. It remains fixed. The services of content writers, graphic designers, and IT consultants or manufacturers would not have changed depending on each client. They have a fixed price for themselves. This would be a really risky strategy if you are going to implement it for eCommerce websites. You would forgo sales opportunities.
When you are an entrepreneur who is selling his service, goods or products online, then it is widely recommended to dynamically change your price. Let’s say you offer a hotel rental service. You can provide discounts on the upcoming Christmas holidays to attract more tourists and visitors. Have you noted how air tickets price keeps changing constantly? Yes, that’s based on the demand and how early you are going to book your tickets to fly. These are all determined by dynamic pricing, which is more suitable to sustain in online competition. This would lead to a considerable increase in the ROI of your business.
As the Microeconomics rule states, when the price increases, the demand decreases. As the right time of performance or the time to purchase approaches, demand increases. When the supply is less but the demand is more, the price would increase.
You should be aware of applying the right rule in the right place. When you are in need of automating your online competition control, then you should go on with the best strategy.
Re-pricing would be the best choice. We, at Wersel, automate the entire process for you accurately. We allow you to concentrate on your business, rather than focusing on complex tasks. You will know which rule fits you well and which competitor you should be watching keenly.