Price is one of the few aspects of a business that influences just about every department. If prices are too high, then products might not get sold. If it is too low, then products will fly off the shelf but revenues will suffer. It is a delicate process to find the perfect price point. So get all the help you can get to make sure that your pricing strategy will allow you to sell a high quantity of products while increasing revenues!
Determine shipping prices
It is almost inevitable that you will have to ship products to get them in the hands of customers. That cost is critical in regards to the final price that customers pay. Using shipping data and times along with distance analysis, you can get a better idea of how much you need to increase your price to cover the costs. You can also analyze distances between all locations in your datasets. That way you can increase your bottom line as much as possible!
Understand pricing models
Prices vary from city to city, county to county, state to state, and so on. So if you don’t know which territories charge higher or lower prices, you could easily leave money on the table. Utilize territories and heat maps to know which areas have high taxes that influence the price of products, or to perform competitive analysis to know how to differentiate yourself from the pack while making a profit!
Research the market
Every customer is different in what they expect prices to be. However, that doesn’t mean that there aren’t similarities. Easily segment out your data to figure out where large pockets of consumers with similar price expectations and disposable income are at. That way you know how to price your product to maximize your profits.