The price of those things

This article is not about promotions, discounts and how to attract consumers through price changes, but about the nature of bias pricing.

More and more online shopping, people who can buy more or less have knowledge level, do electrical business should study these people's characteristics and psychology. In my opinion, online shopping can be divided into the following three kinds: cheap, map convenient, find individuality. These three types of people are not the same as, features are not with , so the expectations of commodities are also different.

Today, however, we are not discussing the characteristics of these three groups of people, but discussing the most critical issues in the electricity business, which are also the concerns of these three groups: commodity prices. There is no discussion today on how to promote, how to discount, how to attract consumers through price changes, too many techniques, different industries, but rather a discussion of the nature of pricing. Pricing is a very academic matter, there are several professional books introduced. Moye in the past few years operating over dozens of customers, according to their own understanding and experience to do a share, certainly not professional, but I believe that the new brand of electricity dealers or product pricing have reference.

The former partial partial theory, the latter part has the example analysis.

1 Target customers determine product pricing and quality

"Preference is the biggest problem. "-Osho

When I first read this sentence, I did not understand the meaning, but when I read it several times, suddenly aroused a lot of my own thinking. Some people shopping is the demand, however most shopping is the desire. It's a key factor in our pricing in a market segment that has a preference for individual buyers.

Now sellers are complaining about the price of electricity dealers transparent, shop difficult to do, brand homogeneity competition. Such complaining sellers ignore the "Target customers" preferences, the price is transparent only because the picture is the same, service similar, product features the same, if so, your target customer positioning will not be different. Want to reasonable positioning target customers, to analyze their preferences and psychology, combined with these create differentiated pictures, personalized services, targeted functional needs, analysis of the target customers like price range to complete the pricing.

Apple is a great company, product focus on customer experience and interactive design, Nokia is also a great company, product focus on functional utility and its own durability, in terms of the cost of hardware itself, the difference will not be more than one times, but the target customers make their price difference is very obvious.

"McDonald's" and other well-known fast food has launched a value for lunch, dinner, per capita consumption can be controlled within 20 yuan, but the same fast food in the field of "Pizza Hut" business package price of the minimum of 39 yuan, every noon we go to some areas of consumption more concentrated observation, these brand stores are crowded, the price difference of more than one times , obviously they are targeting different customers.

Therefore, accurate target customer positioning determines product pricing.

2 brand adjustment determines the pricing of products

When shopping is a kind of desire, brand adjustment directly affects pricing and customer positioning.

20 years ago the hands of brand success is a great idea, you need to be familiar with the market segments of the target customers shopping habits, 70% of the cost of traditional media channels to promote and PR PR, good ideas so that your products in the competition to stand out, to achieve the purpose of sales. However, in 2013 years, the customer's desire is more strong, brand or brand, the emergence of new media to make the customer segmentation more obvious. Every brand, every shop is an art of the main body, can not be replaced.

LV and wheat bag, one is luxury, one is Amoy brand, for functional requirements, there is no difference between the price difference is because of their brand differences, but there are a lot of their market, indicating that desire can lead to a fine differentiation of brand modulation.

3 Pricing of cost decisions

First of all, some of the cost of the electricity business: platform operating costs, promotional costs, personnel costs, goods and after-sale costs.

Just talked about the target customers and brand issues, in order to complete these two points, the need for team building, brand promotion, product design, quality functions, after-sales service and other aspects are involved in different cost of delivery (we pay attention to these several cost aspects, not casually said). The reason is simple enough, the total cost of products is high, the price must be low. Reasonable cost-control methods include the optimization of supply chain, the reasonable choice of operation and operation, the popularization and optimization of data, and the higher margin point can be obtained only by reasonable cost reduction and quality improvement.

4 Channels determine product pricing

In fact, the expansion of the channel involves ERP and supply chain optimization, this part should be considered as a cost dimension of important factors, here alone summed up to share. For the offline traditional channel brand, brand promotion channels are mostly online under the recruitment agent, many brand first taste line, hope to complete online distribution or online procurement, but operating for a period of time are problematic:

Homogeneity of the supplier price competition is fierce, in this section, we recommend that the above target customer positioning and brand-related description of the tone.

The price of the distributor is fierce, and the suppliers are required to offer price concessions.

In this respect, the current distribution of cosmetics category is the most serious. Cosmetics belong to the standard product, each brand SKU is very fixed, the price range is fixed, but also accompanied by fake, parallel imports of the impact of prices. We can look at the supply and marketing platform of Bai grass set, affordable herbal medicine suppliers operating strategy, control the lowest price of sales at the same time to the distributor higher profits, the completion of sales targets to the distributor operating expenses of the subsidy. Such distributors will not disturb the price market, can also have a good return, in line with the promotion of their own shops to enhance the transaction, and strive for operating costs subsidy. Look at the face shop this brand of suppliers, also stuck to the lowest retail price, but the minimum gross margin of a single product only a few cents, the maximum of not more than 3.5 yuan.

I used a crown-level store to apply for the distributors of these brands, operating for three months, the result can be thought to know: I will not recommend any of the face shop products, because the price of a single product is more than one times the parallel imports, but also to bear their own promotion of the cost of the dimension.

Of course, the supplier of the distribution platform concerns not only these, with the price-related level summed up a sentence: if we have distribution channels, must upgrade the price of a single product to complete the expansion of distribution channels, to give distributors higher profits.

5 Case sharing

Below I combine above said four dimensions analysis a brand merchant's case. The brand is the original brand of cosmetics, the main product line divided into: Handmade soap, essential oil, covering products. Brand manufacturers currently have two days of cat shops, covering products online under the market more mature, good business, but another one operating handmade soap cat flagship store but business deserted, the same operation team, the same operation mentality and attitude, why the difference so big?

So I briefly analyzed his shop, first as a pure handmade soap buyer, I am the absolute entry level, but before 5 years of experience in the operation of cosmetics, the service of oil customers, essential oils have a certain understanding. Simply from the front of the information to see the following problems:

The price is on the high side.

The design lacks the brand texture.

Lack of SNS interaction and search engine information acquisition.

Brand makers have explained this.

High price because the product is handmade soap inside the highest specifications of the process, quality far beyond the market 39 package of mail, 59 package of mail products. So for me a beginner handmade soap buyer, I did not find a complete introduction from his overall vision system, highlighting product quality and its high specification.

Lack of brand texture because art is difficult to recruit this year, there are less experience. I have seen the carving of the artist to share the art of training methods, deep feelings, but when a brand itself is lack of texture, how to tell customers a brand story? The position of Liv is definitely not an entry-level user of essential oils, so Liv chooses a single essential oil, chooses the unique brand culture of Liv, Select the delivery of the details.

Taobao outside the promotion has its own team, is also groping. I believe that any brand of brand tone is not the founder of dictation or a few pictures can be remembered, then Taobao outside the promotion has no operational experience is secondary, the first to close to the brand's tone.

Then the customer reflects that they actually have a lot of price range of products, low-priced products have, high-end products have, personality development also have, but also I casually asked a question:

If customers ask you: cheap handmade soap and expensive handmade soaps are whitening, what is the difference?

If customer service encounters this problem, can not negate own low price product, can not say that the effect of the same impact on the high price of sales, long-term, will find that shops are still selling low customer groups, so the target positioning is locked in the middle and low, into a very competitive price market, then the so-called brand story, Brand tone is all empty talk.

So how do you find the product pricing based on the 4 points that were previously mentioned?

Find the industry in the boss level of the shop, study the overall brand visual effects, brand story expression, operation of the customer experience and so on, take its essence, to its dross, combined with its own target customer group pricing.

Research industry scale. Find the current industry competition small customer groups, grasp the niche market, do not blindly kill into a very fierce competition in the field, combined with the needs of small groups of people to formulate products, services, targeted at their own brand-adjusted pricing.

Analyze the Electronic business environment data. What kind of products are the most popular products under the current electric business environment, such as the single essential oil is rose, tea tree or lavender? Is this derivative product easy to sell? Accurate pricing for the explosion.

Accounting for their own costs. Product net costs, promotional costs accounted for, personnel costs, the cost of the platform itself, the cost of pricing.

A price space reserved for activities and channels for discount promotions. At present, the big promotion of the cat is basically under 30 percent-50 percent and mail, jingdong, such as vertical to promote the minimum demand for the whole network, anniversary of the time to discount ... A range of activities, so be sure to set aside the price range for promotional activities.

Today, a simple analysis of the issue of electricity pricing, perhaps some people say, these I seem to know Ah! That's better. There is no particular advanced theory in the world, where the truth is, the difference is that someone regards it as knowledge and someone turns it into wisdom.

Preference is the biggest problem!

This sentence hope everyone can trigger their own new insights, combined into the actual operation.

This article is recommended by Ghost Foot seven, micro-signal: Taobaoguijiaoqi