ALIGN STRATEGY WITH BUSINESS GOALS
Initially, you should understand which particular business goals you are looking to achieve by shifting product prices:
- reach a certain level of profits by a certain time;
- sell N product items;
- stand out among the competition, etc.
CONSIDER ALL PRICING FACTORS
Now, you should clarify which pricing influencing factors you need to consider, from which sources and how often you should collect data. The common major factor here can be an average market price.
COMPARE COMPETITOR PRICES
It’s always good to stay up to date as to your competitors’ pricing decisions. You should know that the lowest prices are usually set by the least popular online stores (which shouldn’t be considered as your direct competitors).
USE RELEVANT COMPETITIVE DATA
It is crucial that apart from pricing fluctuations, you also take into account all other relevant aspects of your competitors in the niche. Their conversion rates, search engine positions, and such should be considered.
TEST PRICING STRATEGIES
Lastly, don’t forget to test your shifts in pricing during particular time periods and analyze results. That way, you will be able to achieve an ultimately optimized result.