1. Penetration pricing strategy
This strategy is based on the “slow and steady” principle. In order to sell the product, the seller sets a low price for the product at the beginning.
When people buy the product and spread it to friends and family, the seller’s sales increase, offsetting the low price of the product.
Some sellers find it helpful to emphasize that the initial low price is the “entry price” to avoid buyers doubting the quality of the product.
2. Competitive pricing
As the name suggests, this strategy relies on some research, and it involves using competitors’ pricing as a guide.
Knowing what your competitors charge, you can match that price or sell at a lower price to ensure your product is highly competitive.
3. Low cost strategy
This strategy relies on keeping prices as low as possible to encourage sales.
Using this strategy requires special care, as you still need to keep an eye on your profit margins. In addition, many buyers will equate extremely low prices with low-quality products, and you need to avoid this by highlighting your product’s selling point in the listing description.
4. Skimming the price strategy
Contrary to penetration pricing, this strategy starts with a high selling price and gradually lowers it over time, creating a feeling of “getting a bargain” at a lower price.
This can be a very complicated process, but if done right. It will work well. Be careful not to drastically lower the price each time in order to keep the perceived value of the product high.
5. Psychological pricing strategy
This is a common pricing routine for many buyers, setting a price point just below the round price. For example, price your product at $19.99 instead of $20.
This strategy follows the principle that buyers focus on the first digit of price, and the above example gives buyers the illusion of saving money.
6. Bundled pricing strategy
This strategy involves bundling two or more products together and charging a slightly lower price than when sold individually.
Typically, buyers buy all the products included in the bundle, even if they have no intention of buying them.
For example, if you’re selling a line of skincare products (each priced at $10), you might consider offering a set of three products for $25 to demonstrate your perceived value to buyers.
7. Discount pricing strategy
This is something that most of us will be familiar with and is a very simple process of lowering the price of a product for a quick sale.
Tactics are often used when sellers wish to clear out old or slow selling inventory.
In some cases, you will need to demonstrate that the product was offered at a higher price for a certain period of time to show that this is actually a cost saving.
Keep your discounts realistic, otherwise, you may make buyers doubt the quality of the product.
8. Dynamic pricing strategy
This strategy allows sellers to constantly adjust the price of their products based on market fluctuations and is a very effective way to stay competitive.
Some sellers may use automatic pricing tools to help price their products reasonably, but the captain recommends that sellers use caution or choose reliable tools.
9. Seasonal pricing strategy
This strategy is only for re-pricing outdated products, for example, if you’re selling beachwear, you can discount it in winter to encourage buyers to buy next summer.
The rest of the time, you might still be able to sell those products, but only if you’re selling them at a reduced price while guaranteeing a profit.