When you’re doing business, you’re not just supposed to pay attention to your customers. You also need to keep an eye on the competition. Things will be challenging when your competition offers price reductions, drawing your customers away from you.
Here’s how to deal with price wars:
Track Online Pricing
It’s easy for customers to monitor prices online so they can make a purchase quickly after making a choice. For a majority of them, a small price difference is important especially during the holidays, when they need to buy as many gifts as they can with their shopping budget. When you monitor competitive prices, you can match your prices or offer specific products at lower prices to get an edge. You’ll also benefit from knowing which products your competitors are offering on discount so you can offer a better alternative.
Restructure E-commerce Pages
It’s not just the actual prices that matter when you’re encouraging sales. The placement of certain elements on a page may encourage or discourage customers from going through with their purchase. There’s the classic rule that prices ending in 9 ($29.99) will encourage more sale than a price ending in 0 ($30), even if the real difference is a mere cent. Add a sense of urgency to the purchase by telling customers that there are limited stocks available. Including the product reviews and ratings will also help.
Update Physical Stores
If you have a physical store, you want it to generate sales as much as your online shop. For this, eye-catching window displays can get more people to enter your shop. Big, bold announcements that you have reduced prices will further trigger interest. Position sale items near items with full prices, and make the cheapest items easy to see from the outside.
You don’t need to lose money by sacrificing profits just to get more items sold. What you need is a clever marketing strategy.