Focus on the final cost of the product, not the retail price

[hasibaakterss3309]

Based on our experience working with retailers of all sizes and across a range of sectors, we have identified important but often overlooked considerations and pitfalls that should be at the forefront of executives implementing a dynamic pricing strategy. There is no one-size-fits-all approach, but paying close attention to the following elements can significantly increase your chances of success.Pricing in Retail and E-Commerce: 5 Examples of Strategies

What to do:
Retailers who successfully implement dynamic luxembourg telegram number database pricing typically follow these rules: focus on the final price of the product, consider consumer expectations, test and refine your strategy, and plan your path.


Shoppers don’t just look at the price of the item they want to buy. Instead, they base their purchasing decisions on the total final price, which includes taxes, shipping, handling fees, and any additional fees added to the total final price. So your dynamic pricing strategy should reinforce the value proposition you’ve chosen. That means making smart choices not only about prices, but also about promotions, bundles, custom offers, and shipping times and additional fees.

For example, a furniture retailer tested lower shipping prices and longer delivery times, based on the hypothesis that shoppers don’t necessarily want their new furniture delivered right away, but would rather have a new dining table delivered on a Saturday than midweek. The retailer found that the longer wait didn’t significantly impact conversion rates and gave the company the opportunity to optimize deliveries based on capacity and cost. Algorithmically offering the option to wait until the weekend for certain items, with the subsequent savings to the shopper, proved to be an effective way to drive additional sales.
Consider consumer expectations