This article covers 4 commonly used pricing techniques in the consumer electronics business, through the eyes of a data-driven decision-maker or a brand manager. The term 'pricing' implies defining an end-user price for retail sales.
Pricing strategy is a well-researched topic, thoroughly analysed in scientific papers but often and easily neglected in the everyday decision-making process. Brand management is based on combining 4Ps of the marketing mix (product, price, placement, promotion). Therefore, the decision-makers should be aware of different techniques and tools implemented in the pricing process. Then, they should and combine them with their own understanding of the market and company’s risk-taking ability.
Whether they are directly responsible for the pricing process or not, brand managers, sales managers, or eCommerce managers can have a significant influence on it.
Management usually considers a lot of factors prior to product pricing, such as:
But, it is common in practice to simply follow the competition and act reactively when a lower price for some product is noticed. This can have several consequences:
There are multiple pricing strategies, with one common objective: to maximize the company’s profit. In this article, we would like to point out 4 pricing techniques often used in the consumer electronics business, in order to address the specifics of each and provide guidance on how KLIKER market can be of use in pricing.
We will analyse:
Full list of pricing techniques available in our Market Data Usage in Brand Management.
Economy pricing is a pricing technique in which promotion and marketing costs are always kept minimal, to keep the end-user prices low. Also known as budget pricing, it is suitable for brands and merchants whose target buyers are budget-driven, with price being a primary factor for the purchase decision. Some usage examples:
Now you can conduct Search and analyse the price distribution among retailers having these products listed.
Beware – sometimes it is not necessary to have the lowest price, even in the budget pricing model. It can be enough to have a price lower than a top-selling competitor’s model.
How to find the top sellers?
For easier analysis and archiving, we recommend exporting the Search results into an .xls file.
Promotional pricing is the most used pricing technique in modern retail and eCommerce. With exception of EDLP (Everyday Low Price) retailers, most of the merchants are using some form of promotional pricing: a discount, free gifts, coupons, vouchers, bundle offers… When we talk about promotional pricing, we consider products in a mature phase of their lifecycle, not exclusively EOL phase.
KLIKER market is showing regular price and promotional price for every product. KLIKER market also collects publicly available and non-restricted coupons and discount codes and applies them to regular prices to get the final, lowest price.
When deciding on your next promotion, KLIKER market can help you with:
*Automatically means that for Retailers using KLIKER all of their crashed promo products will appear on Crashed Promo Alert tab. For Brand and Wholesales users, Crashed Promo can be used once hero products have been pinned to the Pinned dashboard.
Mark-up pricing is based on increasing the manufacturing or purchasing price for a certain mark-up (%). Mark-up can be constant on all products or specified for each product line or category.
Dynamic pricing is also known as surge pricing, demand pricing, or time-based pricing. It is a flexible pricing strategy where prices fluctuate based on market and demand, purchase frequency, stock level, and sell-out dynamics. It is often used on advanced eCommerce sites, with the aim of keeping a constantly high competitiveness level.
Dynamic Pricing can be:
A good pricing strategy can be your competitive advantage on the market. By actively using and analysing market data in the pricing process, you can achieve higher profits and maximize the return on your company’s capital. We created KLIKER market as a tool to help you in this process.