Low prices are the top reason customers buy online for items. The 2021 Consumer Trends Report Q4 by Jungle Scout discovered that this was their top reason to shop online. Low pricing strategies allow your business to sell a lot of products. And sure, it is okay to have low prices, but you have to be careful. Because a competitor can come out with the same product and cheaper than yours, hurting your sales.   

Before you decide to lower the prices of your products, you got to analyze which products are the chosen ones and the most convenient moments to do it. Now, we are showing you the best low-price strategies that your company can use.    

1- Promotional pricing 

Offering discounts and promotions are a perfect method to offer low prices. Promotional pricing is a pricing method where a company temporarily reduces the prices of its products to achieve higher demand and make more sales. Of course, your brand image will not be affected because you are lowering your products' prices for a certain period. That is the key that makes promotional pricing successful. 

2- Bundle pricing 

Another pricing strategy you can use is bundle pricing. Bundle pricing focuses on selling two or more products at a lower price than it would cost the consumer to purchase those items separately. For sellers, this tactic is used to move products that are not performing well and occupy space on your inventory.   

Vendors increase their sales when they apply bundle pricing. A McKinsey & Company study discovered something interesting in Amazon related to bundle pricing. When a customer buys orange sticky notes for $6.72, Amazon suggests (with algorithms) other sticky notes in different colors at a higher price. That helps Amazon increase its sales while still offering a low price. 

Source: McKinsey & Company 

3- Market penetration 

When a new company enters a new market, they try to boost their sales by setting their prices lower than their competitors. That company will generate buzz, attract new customers, and gain a portion of the market share. But a company that uses this strategy cannot stay with the market penetration strategy forever. They must raise their prices back to normal once they obtain market share and customers.     

Conclusion 

Low-pricing strategies work for companies because that is the top reason customers shop online. But you need to have data to implement it, like the competitors’ prices. That is why PriceTweakers is the perfect tool for your company. With our software, you can monitor all your competitors and create pricing strategies to increase your sales and profits. But our program is the most powerful in the market, and we will run out of lines describing our features. Contact us for more information. 

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