Pricing Strategies using the Repricer
If you have a specific pricing strategy in mind for your products, WisePricer’s repricing tool allows for easy and customizable implementation of your pricing strategy. Below are some sample implementations of the most common pricing strategies that you can utilize. For all strategies, make sure the “Reprice based on Price + Shipping (total price vs. total price)” is checked if you want to include your competitor’s shipping costs in the comparison; it should come checked by default. These strategies below are for Enterprise users who have access to advanced rule features. If you want to see pricing strategies using the basic features, check out this tutorial.
- Penetration pricing, or selling low and then increasing price over time, is also possible using the “Sales Performance” repricer rule from the drop-down menu.
- You can easily tell WisePricer that if your item sells more than a designated amount of units per month, increase the price by a set percentage or dollar amount.
- If you find sales tapering off, you can also set the reverse of this rule and set if an item sells less than a designated amount per month to decrease the price by a certain amount.
- You can modify these rules and tweak them as needed to make sure you achieve your desired price over a certain period of time.
- PriceGuard will likely not be needed here as price will gradually increase with this strategy.
- Setting automatic repricing for penetration may or may not be optimal depending on your strategy, as you’ll want to monitor when your price is losing sales.
- WisePricer also has a special option specifically for time-based pricing.
- Select the “Time of Day” rule from the rule drop-down menu.
- Now you can set different prices for a given product at different time per day, as per the screenshot below.
- You can designate up to three different times of the day to reprice your product.
- Be aware of your minimum price when setting these rules, as your price could dip below your minimum price if you aren’t mindful of how much your price will fluctuate over the day.
- To make sure your prices stay at your minimum and don’t fall lower, use PriceGuard’s “Set it to minimum price” option in PriceGuard.
- With this option, automatic repricing is probably a good choice to enable.
- Skimming, or making your returns on a product with fewer sales for higher prices, can also be done with the “Conversion Rule” type of repricing rule.
- If you know what conversion rate you would like to maintain for your product at those higher prices and for how long, simply input that data in the first line below your rule name and description.
- Once you have established those, you can set the goal-posts for the rule, and tell WisePricer to increase or decrease the price if you are above or below your conversion range.
- You can also increase and decrease your price once you are INSIDE your conversion range using the third checkbox option, allowing you to fine tune just how much you can charge inside your desired conversion range before you fall out of it.
- If you want to simply set the price once you fall inside your conversion range, set the third option to 0% increase.
- Because skimming relies on high prices to be effective, PriceGuard should not be an issue here. However, should your price dip below your minimum price, select “Leave product at current price” option to leave the price at your higher levels.
- Setting the rule to automatic reprice will likely be useful here as you want the rule to keep adjusting prices until you fall inside your conversion range.
WisePricer Optimized Strategy (ENTERPRISE)
- On an enterprise level account, you also have access to the Weighted Average Rule, a useful tool in setting multiple rules for a product.
- Once you have created some previous rules, you can use any and all of them in your Weighted Average rule and give them correspondingly different weights according to their importance in your strategy.
- The rules we have set up for this example are:
o Match Amazon, Sears, WM: This rule will match the price on Amazon, Sears and Walmart.
o Maintain CR (Conversion Rate) 2-3%: This rule is based around maintaining your conversion rate; its base formula is derived from the basic competition rule of being below the cheapest competitor by 1%.
o Sales Velocity 20/week: A strategy to maintain a sales velocity of 20 items per week. This rule is also derived from the base competition rule of being equal to the cheapest competitor’s price.
o Match Top 3: This rule is also a basic competition rule of being below the 3rd cheapest competitor.
- Once you have selected which rules you want to use, you can change which rules take precedent over the other. A rule with a higher percentage will be weighted higher and prioritized over a rule with a lower percentage.
- Note that you can see what percentage weight those 4 rules are currently holding to the right of each of those checkboxes; the numbers you entered are calculated in ratio to one another.
- This allows you to build a rule that will prioritize the importance of each individual competition rule you use within this option, giving you the ability to build out custom rules for your individual repricing needs.
- Be sure to remember to select the appropriate PriceGuard and automatic repricing options for your individualized needs.