How to Price Smarter in E-Commerce
Dr. Jonathan Bein, President — Real Results Marketing
• Amazon Supply • WayPoint Analytics • pricing strategies • distribution industry sales management • distribution industry intelligent pricing • business math for distribution • Innovate for the Future • Randy MacLean • Real Results Marketing • Dr. Jonathan Bein • cost reduction • customer profitability • managing customers for profit • fixing customer profitability • Advanced Cost & Profit Analytics
Thursday, March 19, 2020—It's necessary to create a new pricing system for online orders. These transactions can raise costs unless approached differently, and it's important to adjust pricing accordingly.
Don't want to increase prices? Then increase basket size, encourage bigger orders from your customers, and that will lower the costs so there's little to worry about.
It passes the gut check for most to say that "adding another line to an invoice will make this more profitable", because it enables you to work around fixed costs. In most cases, when possible, it's a good way to go.
However, you need a certain value to overcome the incremental cost to the invoice. Adding on another $4 item could do more harm than help, and your best bet is to add bigger items with a higher value. In order to see what that turning value may be, and to see how to most effectively bundle orders... That's where analytics comes into play.
WayPoint show you all this information, showing what you can do that will be either helpful or detrimental.
For more information about Dr. Jonathan Bein, visit: www.realresultsmarketing.com