Average Order Value: What Is It and Why Is It Important?
Average Order Value (AOV) is a metric that helps retailers understand their customers’ purchasing behaviours. An average order value tracks the average dollar amount spent every time a customer places an order. Like with all other key metrics, AOVs can be tracked over any time period, but most companies prefer to monitor their AOVs as [&helli ... Read More
January 6, 2020 inventory reporting, pricing strategy, retail, sales ordersDynamic Pricing Strategy: The Good and the Bad
Product pricing strategy is a crucial aspect of a business that directly affects inventory, sales and profitability. If a business sets prices too high, customers might choose to buy your competitors products, while low prices may lead to other implications including less revenue. A dynamic pricing strategy is a type of price discrimination that tr ... Read More
August 17, 2019 business success, pricing, pricing strategy, sales performanceDynamic Pricing: Investigating the Pros and Cons
Pricing is very strategic and it makes a big difference in how a business operates. Some businesses operate on a fixed pricing model where the price point is relatively set in stone across the board. An example of this would be the iPhone. They generally are sold with a fixed price strategy and rarely veer […] ... Read More
July 22, 2019 inventory stock, pricing, pricing strategyDynamic Pricing — What does it mean for your business?
Dynamic pricing is a pricing strategy that businesses use to set flexible prices for products or service based on current market demand. Also known as surge or demand pricing, dynamic pricing is common in eCommerce, hospitality, tourism, entertainment and some service industries. Most people would have experienced dynamic pricing at some point, it ... Read More
July 12, 2019 customer satisfaction, pricing, pricing strategyMastering Multichannel Pricing
Ever since the rise of online shopping, it has become increasingly common for customers to walk into a retail store, pull out their cell phones and compare the store’s prices to those of their competitors. However, more recently customers may have noticed a pricing difference across the same store’s digital channels as well. This is [&helli ... Read More
October 23, 2018 multi-channel, pricing, pricing strategyMeeting the Demands of a Multichannel Pricing Strategy
Multichannel retailing is a set of activities concerned with selling goods or services to consumers through more than one channel. A multichannel pricing strategy is where a business will offer their customers different prices depending on where they chose to shop. The common practice is to offer customers lower prices via an online channel. This ... Read More
October 17, 2018 inventory control, multi-channel, pricing, pricing strategyEffective Seasonal Pricing Can Improve Cashflow
Many traditional and e-commerce businesses are seasonal, and this seasonality will affect different industries in different ways. Stock control is one of the biggest challenges that surges in demand and seasonality will place on a business and its inventory stock. Seasonal demand fluctuations can also impact staffing, scheduling operations and more ... Read More
June 18, 2018 pricing, pricing strategy, seasonal demandEffective Seasonal Pricing Can Improve Your Cashflow
Many traditional and e-commerce businesses are seasonal, and this seasonality will affect different industries in different ways. Stock control is one of the biggest challenges that surges in demand and seasonality will place on a business. Seasonal demand fluctuations can also impact staffing, scheduling operations and more critically, cash flow. ... Read More
June 6, 2018 pricing, pricing strategy, seasonal demand, stock controlHow Retailers are Coping with Pricing Challenges
Retail is constantly evolving and retailers are always seeking to adapt their pricing strategies to reflect these changes. Retailers are in an interesting predicament when it comes to balancing prices between brick-and-mortar stores and online shops. By understanding pricing techniques in either scenario, it will allow a retailer to compete well in ... Read More
May 14, 2018 pricing, pricing strategy, retail4 Pricing Challenges for SMEs
One of the hardest questions for retail SMEs to answer is how to set prices that are both competitive and profitable. After all, it’s not just a matter of taking ordering cost and adding a markup. Getting it right can be the difference between business success and a string of losses. So it’s important for […] ... Read More
May 11, 2018 pricing, pricing strategy, retail, SME6 Pricing Challenges Facing Retailers
Pricing strategically is at the heart of all retail competition, but pricing products is no easy task. Getting it wrong can have a dramatic impact on your sales, directly affecting revenue streams. Although there are many factors that contribute to a consumer’s final choice, such as brand loyalty, purchase occasion, perceived product value, price ... Read More
May 9, 2018 pricing, pricing strategy, retailIs Volume Pricing Right For Your Business?
A pricing strategy that allows discounts for bulk purchasing, volume pricing offers financial incentives for consumers to purchase products and/or services in high volumes. Volume pricing can motivate purchasing behaviours where a customer will buy in bulk to simply to achieve a discount. If your business operates in a highly competitive environmen ... Read More
January 19, 2018 discount pricing, pricing, pricing strategyPricing Differently: Tiered and Volume Pricing
Most small businesses are focussed on growing their revenue, market share and, in the long run, their profitability. A wide range of factors can affect a business’ growth, but one of the most important is the business’ pricing strategy. A smart pricing strategy involves working out the price point that maximises revenue growth, increases market ... Read More
January 11, 2018 pricing, pricing strategyWhere Do Your Customers See Value?
Most small businesses are trying to grow their market share and revenue. This typically means thinking deeply about one of the major factors affecting inventory management: pricing strategy. Set prices too high and you’ll lose market share, but go too low and you risk leaving revenue on the table and compromising your fledgling brand. Tiered ... Read More
December 28, 2017 pricing, pricing strategyPricing Strategies to Clear Stock
Many people, buyers and vendors alike, do not understand the fundamental differences between tiered and volume pricing, and sometimes they even consider them to be the same. Both pricing models reward buying in volume with discounted prices. However, it is detrimental to business to think they are the same, as if their differences are understood [& ... Read More
December 22, 2017 discount pricing, pricing strategyVolume Pricing: Giving More For Less
Volume pricing, simply put, is pricing inventory stock for volume or bulk sales. Though it may seem counter-productive to price items lower, this is a strategic pricing technique when the name of the game is to increase profits. However, it is worth taking the time to understand the psychology behind volume pricing, your customer and […] ... Read More
December 19, 2017 pricing, pricing strategyWhy You Need To Know About Trade Discounting
Trade discounting is important to know about for over production of inventory stock as it can really help you sell inventory stock that would otherwise be obsolete. It can also increase the quantities of inventory stock sold too. Here we explain what trade discounting is and reasons for using trade discounting. What is trade discounting? […] ... Read More
December 6, 2017 overstock, pricing, pricing strategy, trade discountsDiscount Pricing Strategy Explained
A pricing strategy is an important element of a lucrative business. More than any other element, a pricing strategy directly impacts the amount of profit you make. Choose a pricing strategy that helps you meet your sales objectives, enhances your brand perception and provides the best profit point for market demand. A discount pricing strategy [&he ... Read More
December 5, 2017 discount pricing, inventory control, pricing, pricing strategy, profit marginsMaking Sense of Margin and Markup
Pricing is important to business as it can mean the difference when it comes to customer satisfaction. Successful businesses want to maximise margins and markup. Unfortunately, businesses are increasingly using these terms as synonyms for the same concept – the difference between the price goods are sold for and the ‘cost of goods sold’. ... Read More
November 28, 2017 pricing, pricing strategy, profit marginsWhich Volume Pricing Approach is Best for Your Business?
As consumers, we’ve all experienced the way that volume pricing can affect the way we perceive value. Take one slice for $2 or two slices for $3.50? It’s a no brainer – buy two and save one for later. Volume pricing is fundamentally about increasing sales volume, even at the expense of a lower per […] ... Read More
November 25, 2017 ordering costs, pricing strategy, profit marginsUnderstanding Margins and Mark-Ups
The terms margins and mark-ups are often confused in business and this can be problematic for several reasons. Margin is sales minus the cost of goods sold, while mark-up is the amount by which the cost of a product is increased in order to determine the selling price. Confusing the meaning of these terms can […] ... Read More
November 11, 2017 inventory management, pricing, pricing strategyWhat Is the Difference Between Tiered and Volume Pricing?
Tiered and volume pricing are both great ways to target an audience and encourage consumers to spend. However, the terms are often used interchangeably, whereas in reality they are very different. It’s important to consider pricing as that will play a part in your customers’ overall satisfaction. This article examines each pricing strat ... Read More
November 6, 2017 business strategy, inventory control, pricing strategy