6 Disadvantages of Cost Plus Pricing
Cost-plus pricing has been a cornerstone of business strategy for decades. It’s simple: calculate the total cost of making a product, add a markup, and get your price. On the surface, it seems like a no-fail approach — every sale guarantees your costs are covered, and you pocket a profit. But simplicity doesn’t always mean […]
Psychological Pricing Advantages & Disadvantages
Capturing attention in ecommerce isn’t easy. Staying competitive means understanding both consumer psychology and competitor pricing strategies. Psychological pricing — a method that taps into buyer psychology to influence purchase decisions — could be the tool that sets your business apart. But like any strategy, it comes with pros and cons. Here’s how to use […]
Why Do Companies Use Price Discrimination?
What is price discrimination? Price discrimination is a strategy where businesses charge different prices for the same product or service based on specific criteria, allowing companies to capture maximum revenue by tailoring prices to various consumer groups. At its core, price discrimination is about identifying what each customer segment is willing to pay and adjusting […]
Price Elasticity – A Simple Explanation
Determining the right price can be one of the most challenging decisions in business because of its direct impact on your bottom line. One critical concept to understand when setting prices is price elasticity. What is price elasticity? Price elasticity of demand measures how sensitive customer demand is to changes in price. In other words, […]
The Importance of Pricing in the Marketing Mix
Spend enough time in ecommerce, and you’ll encounter the “Marketing Mix” — Product, Place, Promotion, and Price. These 4Ps are the foundation of effective marketing strategies, each serving a unique role: And then there’s Price — arguably the most powerful of them all. Why? Because price directly impacts consumer behavior and immediately affects your bottom […]
What is Surge Pricing – and is it Appropriate For My Business?
What is surge pricing? Surge pricing happens when a company raises its prices due to an increase in demand — and lowers them when demand weakens. It’s a dynamic pricing strategy that adjusts pricing in real time based on the current market environment. But what is dynamic pricing? It’s exactly that changing in prices based […]
What is MAP Pricing and is it Legal
Ever wonder why certain products never seem to drop below a specific price point, even during sales? Or why some brands maintain consistent pricing across multiple retailers? It all comes down to MAP pricing. MAP (Minimum Advertised Price) is a policy set by manufacturers that dictates the lowest price a retailer can advertise for a […]
What is RRP Price and When to Use it?
Pricing is tough, even for the most seasoned business owners. Valuing your products while meeting customer needs is an ongoing challenge, especially in a fast-evolving marketplace. One approach that businesses have relied on for years is RRP (Recommended Retail Price). It’s a pricing strategy that helps you remain competitive while capitalizing on existing market conditions. […]
How to Monitor Competitor Pricing on Shopify
Effective price monitoring helps you stay competitive, maximize profits, and quickly adapt to market changes. Let’s explore how you can monitor competitor pricing on Shopify and use that data to drive your business forward. Why bother with competitive price monitoring on Shopify Stay competitiveIn ecommerce, pricing is often the deciding factor for customers when choosing […]
What is Ecommerce Dynamic Pricing?
Ecommerce dynamic pricing is a strategy that automatically adjusts product prices in real-time based on factors like market demand, competitor pricing, and customer behavior. This pricing approach helps businesses remain flexible and competitive by continuously optimizing prices to reflect market conditions. What does dynamic pricing mean in ecommerce? First of all, what is dynamic pricing? […]
