8 Pricing Methods for Hot Products

Pricing is a deep business subject. Many times it’s not because the product is bad or the marketing is wrong, but because the price is not determined.

This causes users who originally wanted to purchase to repeatedly struggle with payment, greatly reducing the success rate of payment.

01 The benefits of reasonable pricing

Learning to set prices reasonably has three intuitive benefits:

1. Shape the user mind

Or it can be called product image or brand image. For example, Apple mobile phone is relatively well-known now, and everyone knows that its price is more than 5,000 yuan.

But what would you think if Apple launched a 1,000 yuan phone one day? You definitely won’t feel like you’ve been fleeced.

Including mainstream luxury bags, if they start to sell for 500 yuan or 1,000 yuan, would you still think they are high-end?

2. Filtering of transaction users

Price is the best customer value screening threshold.

Not only can high prices be used to screen out low-spending users, but low prices can also be used to screen out users who are particularly sensitive to quality.

For example, online paper towels are sold at 5 yuan a pack and at 50 cents a pack. The 50 cents paper towels can be used, but the quality is definitely slightly worse.

If a customer who spends 5 yuan comes to buy your 50-cent tissues, his experience will definitely be very bad because the products he is comparing are different.

Therefore, the price threshold does not only serve the purpose of high prices.

3. Accelerate user transactions

Why do many new products have to be promoted when they are launched? Why do people wait for 618 and Double 11 to buy big items? Isn’t one of the reasons because they are cheap?

Why are many seasonal fruits selling like hot cakes on TikTok? Is it just because the bloggers shoot beautiful videos?

Definitely not. If the same specification of mangoes at 19.9 yuan per 6 catties are changed to 29.9 yuan per 6 catties, do you think the orders will still be popular?

Therefore, when we price our products , we must fully consider multiple factors, otherwise it is very easy to get half the result with twice the effort.

Next, I will share with you eight common pricing methods. I hope it will be helpful for you when you are doing e-commerce, community building, and pricing for selling courses.

02 8 common pricing methods

1. Fixed price

This type is most commonly found on supermarket shelves. You can also bargain for it at the vegetable market or Taobao store.

But on the supermarket shelves, you can only take the goods obediently.

There are two important reasons why many people are willing to place orders at a fixed price in supermarkets:

One is that the pricing of surrounding merchants is similar, and you will find the prices are the same if you compare prices from three stores.

The second is that the substitutability is weak, but the demand is strong . Maybe you can find cheap shops if you walk one or two kilometers, but compared to the ones right in front of you, you still choose a fixed price.

The fixed-price pricing model mostly exists in offline businesses, such as hotels, scenic spots, and some restaurants. The fixed-price pricing model is also becoming increasingly popular in the used car field.

One-price is more suitable for three scenarios:

One is unmanned self-service, without too much human involvement, including online customer service.

The second is the low-priced single product type, which has very low profits, especially for products that sell in large quantities.

The third is short-term service, which does not require too much service intervention in the later stage. Even if the unit price is very high, it is more based on the sale of the product itself.

2. Tiered pricing

In our daily lives, water, electricity and gas are generally priced at a tiered rate.

The consumption effects produced by tiered pricing in different scenarios and products are completely different.

For example, when we use electricity, the more we use, the higher the price, so many people will restrain their consumption.

But when buying some food and fruits, the more you buy, the cheaper the price, especially for wholesale merchants.

Of course, there is also a tiered price that gradually increases, which is multi-category SKUs or services.

For example, 3 jin of oranges are 9.9 yuan, 5 jin are 14.9 yuan, and 10 jin are 19.9 yuan. However, this pricing strategy can actually motivate users to buy high-priced products.

3. Discounts for purchases over a certain amount

This is very common in e-commerce promotions, while offline supermarkets only occasionally have one or two discount events.

There are three details for the full reduction activity:

The first is product usage: discounts for the entire store, discounts for categories, and discounts for individual items.

The second is the extent of the discount: 20 yuan off for purchases over 200 yuan is a discount, and 5 yuan off for purchases over 50 yuan is also a discount.

The third is the tiered discount: is it a one-time discount or a cumulative discount? For example, what is the difference between discounts for purchases of 50, 100, and 500?

The main purpose of the full-discount promotion is to increase the average order value and product sales, which is suitable for large-scale sales and clearance sales.

As regular sales, it is still necessary to maintain a certain high profit.

4. Membership Price

This is the only pricing policy with a threshold. If you want to consume, you must first become a member.

The reason for setting a membership price is to guide users to become members.

The purpose of becoming a member is to lock in customers and make them long-term consumers of the platform.

When setting membership prices, you must pay attention to the overall pricing system and make sure it is not chaotic, because during big sales, there are too many pricing policies on the platform.

If you are not careful, coupled with some discount and deduction policies, it is easy to suffer losses.

5. Discount price

It can also be called points price or coupon price. Setting the deduction price is actually the platform’s settings for points and coupons.

1. Stimulus benefits: that is, direct deductions, such as special promotions, where users can directly obtain discount coupons for the entire store or individual products.

2. Invisible benefits: Some platforms will have virtual amounts such as membership points, food coupons, gold coins, etc., which are not prices that can be directly seen by everyone.

3. Game benefits: You can also set up some games to stimulate users to obtain benefits, such as consumption, lottery, forwarding, browsing, sign-in to deduct benefits, etc.

There are two ways to use the deduction:

One is the face value discount , such as signing in to get a five-yuan discount coupon.

The second is discount deduction , such as 10% off, 12% off and so on.

6. Flash sale price

It can also be understood as a direct reduction/direct drop, which is a benefit set up in the short term to stimulate users to place orders quickly.

One is the flash sale based on the amount: for example, the original price is 19.9 yuan, but now it is sold for 9.9, but there is no limit on the quantity.

The second is the flash sale in terms of quantity: on the basis of price discount, limited quantities are also sold at the same time.

In addition, flash sales are targeted at products, but they can always exist as a sales form.

For example, you can set up a special flash sale channel, or have the first few customers every day in an offline store enjoy flash sale benefits.

The main purpose of flash sales is to stimulate consumption and attract traffic.

In the field of live streaming e-commerce, flash sales also play a role in livening up the live streaming atmosphere and building sales trust.

7. Package Price

This is the most effective way to increase transactions and customer orders in e-commerce and offline product sales.

First, restaurants like Shaxian and roadside fast food are the most classic applications of set meal prices.

Secondly, when we were doing social e-commerce in the past, we would offer various membership gift packages.

Third, in order to boost the sales of some slow-moving products, many home appliances and beauty products are sold as bundled products.

In addition, packages for products such as clothing, mobile phones, etc. are intended to increase customer orders and drive other products.

Then, some friends will ask, how do I set the package price if I provide paid communities or knowledge training?

This is also very simple. First disassemble the services and then combine them.

For example, membership, one-on-one consultation, electronic materials, offline meetings, training, private board meetings, etc., and then you just need to list a few price ranges.

It is also very simple for those who sell e-courses. On the basis of the main course, can you give away some additional courses, materials or add WeChat consultation opportunities?

I would also like to emphasize that I have previously shared the album "TikTok Single Product Number". For the sales of single products, the most important thing is to determine the quantity, product mix and price of the package.

8.9.9 price

It can also be understood as a fixed price. 9.9 is just a general term. Many of our offline two-yuan stores, three-yuan stores and even ten-yuan fast food stores are within this category.

The purpose of this specific preferential price is to increase sales and make the product a hit.

First of all, whether you are running an offline store or an online supermarket, one of the purposes of products like 4.9 and 9.9 is to generate traffic.

You may even make a small loss, but from the perspective of attracting and converting a new user, this is your investment in customer acquisition.

For example, it’s the same when you offer training courses. You launch a course for 9.9 or 19.9 yuan. The purpose is not to make a profit, but to screen.

Filter out users who are willing to pay and are willing to pay for higher-priced courses because of your traffic-generating products.

Secondly, if you can find some products with potential, even if they are priced at 5 yuan or 9.9 yuan, there is huge room for profit.

This type of product is more like daily necessities, such as a lighter, a key, a bottle opener, etc.

By the way, let me share with you a money-making case. A few years ago, I went to night markets in some prefecture-level cities in Anhui and Jiangxi, and some stall owners were selling children's sand paintings.

This kind of product only costs a few yuan to purchase in Yiwu, but is sold for 10 or 15 yuan a pair at night market stalls. Children can play with it by themselves and are given some other small toys as gifts.

After get off work, the couple goes to two different places to set up stalls as part-time jobs, and can earn at least an extra 7,000 to 8,000 yuan a month.

So many times, when it comes to making money, don’t aim too high but try to earn some money other than your salary first. The most important thing is to find the feeling of making money.