One of the most important factors that all Lazada or Shopee sellers consider when listing their products online is the sale price! 2 weeks back we wanted to check what the community opinion was on pricing lower to get more sales, and there were a LOT of opinions!
Within minutes of posting, the post got A LOT of opinions.
But when looked at closely, there were 3 Main answers.
Answer #1: NO
I can understand this, A lot of sellers are always frustrated with Price Wars. It hurts everyone (Including the customer!) and is generally very difficult to compete with, when most sellers already have very thin profit margins.
Answer #2: MAYBE / YES
Another group of sellers shared the opinion that a Price War is an inevitable part of selling online and lower prices should be used when; the situation permits and if you have the margins to do so.
Answer #3: TRY SOMETHING ELSE
Many of the sellers pointed the dangers of lowering price, and suggested alternatives! This was very educational 🎓
Okay, so what’s the answer here?
We would be lying if we said that lowering price was not a strategy, it is.. but we are here to help you break the mindset, that it is the ONLY Strategy.
Here are the 3 key factors to take into account when pricing my products:
Pricing Factor 1: Give Better Value vs Competitors
The goal is to be competitive, this does not mean the lowest price, it means that you need to offer the BEST value.
👉 To do this, find your true competitors, if you’re selling Branded Premium Jogger Pants, don’t compare your listing with OEM Listings.
👉 Instead, a better comparison point is other branded products such as yours.
Question to ask yourself: Would you buy your product at the price it is at?
Pricing Factor 2: Keep Your Margins Safe
At the end of the day, you're running a business, and you need to make profits for your store to grow, don't sacrifice margins over the long term. Remember to check what is the "Best Price" you can offer and always check to see that you're pricing without crossing that best price.
Even if your competition is priced lower, consider options that can increase your value without lowering the price.
Pricing Factor 3: Focus on Deals instead of Direct Discounts
Using tools such as Vouchers, Flexi Combos and Free Shipping - By creating a good combination, you will stand out in front of your customers and push them to buy (more!)
Pricing can be complicated, but with some good competition and market research, while also keeping your margins in check - you should be able to find great pricing strategies that work.
If you lower pricing without a plan, then as our good friend Chris said;