Magento 2Magento ExtensionsSeptember 24, 2013

Which Pricing Strategy Is Effective For Your Business?

If you do more than blogging such as buying or selling online, then pricing strategy is something that can do or undo many things for your business. Definitely pricing strategy depends on the type of business your doing, but a hybrid strategy can work everywhere. For example, you offer free apps but premium supports so in this case free and paid strategies can both work. Let us discuss this further, giving away products for free works great for marketing. Many merchants have used free pricing strategy to grow their businesses.

Once you get the visitors on your website, you can use cross/up sells to market premium products. You can also offer premium version or support for free products. A new pricing strategy that is on the rise today is “Customer Price” method, in this plan you can set the minimum threshold and then allow customers to enter the price they want to buy at. FMEExtensions Magento Store already offer this solution in its store, you just need to install the Customer Price Magento extension and there you go.

If you are selling similar products, you can use flat pricing. This type of pricing is also used in subscription pricing strategy where users can subscribe to receive set of products every month on a fixed monthly price. Contrary to this is Dynamic/Personalized pricing which depends on number of factors such as custom product options, loyalty points etc. So products are priced differently based on different factors.

It’s also amazing to see ‘Pay What You Want’ pricing strategy which also works great for marketing purpose. It is what its name suggests. Similar to free pricing, you can offer cross/up sells and promote premium products. Lastly there is another option you can use and that is ‘Tier Pricing’ just like coupon codes, gift certificates or bundle deals. Products are priced differently based on the deal.