Video Length: 12min
- Pricing is a Marketing tool, and in eCommerce, pricing is VERY important.
- You need to know your break-even (add up your product costs, your labour costs and your variable and margin - that's you break-even)
- Next you need to know WHAT IS YOUR CLIENT IS WILLING TO PAY.
- You need to find this through data (surveys and sales data)
- Monadic surveys will give you a demand curve which determines the best price your survey takers (segment) are willing to pay
- Price Elasticity will allow you to know how much you can increase your price and how much your demand will fall.
- As a result you can change and fit prices according to your client's needs, increasing that margin.