Here's a common problem. Your brand needs to increase prices on new items in an effort to increase gross margins. However, your customers are conditioned to buy low-price items. So when you offer marginally more expensive new items, customers rebuke your effort.
There are workarounds.
In a typical pricing project, I create what I call "targeting variables". The variables are used to help the marketer side-step key issues. Here are the most common variables I generate.
- Primary Merchandise Category Preference.
- Secondary Merchandise Category Preference.
- Primary Marketing Channel Preference.
- Secondary Marketing Channel Preference.
- Preferred Pricing Tier (Low Price, Medium Price, High Price).
- Does the Customer Typically Purchase Items Below the Average Historical Price Point for that Item?
- Customer Quality (A, B, C, D, F, New Last Year, Lapsed).
Here's a good way to sidestep pricing issues. You have a visitor to your website. The visitor is a high quality visitor ("A"), the customer prefers Mens Socks first and Mens Pants second. The customer typically orders Online via Search, and Online via Catalogs second. The customer prefers Low Price pricing tiers. The customer, however, likes to buy items at or Above the average historical price point for the item (i.e. the customer doesn't wait for discounts on the item and doesn't buy via liquidation/clearance). Armed with this information, you can "show" the customer items that are inexpensive within Mens Socks and Mens Pants, items that are being sold at full price.
Just personalize the experience for that individual customer.
That's a decent outcome ... one you can expect to generate when you buy your "Hillstrom's Pricing" project.
- Cost Through 12/31/2019 = $8,500.
- Cost On or After 1/1/2020 = $12,000.
- A Pricing Project is included FREE when you purchase Hillstrom's Total Package.
Honestly, the project cost is virtually free. What would stop you from getting started??