1. Customer value pricing
Customer value pricing is based on the perceived value of consumers, not enterprise costs. Enterprises need to obtain consumer demand and value perception, so as to set prices that match customer perceived value. Perceived value is a subjective factor, and different customers will have different perceived values. Therefore, a good price does not mean a low price. For example, Rolex watches are expensive, but many customers feel that they are worth the money. Pricing based on customer value can be divided into value for money pricing and value-added pricing.
(1) Value for money pricing is a method of setting prices that match customer perceived value based on research. With the outbreak and spread of the COVID-19 pandemic, international economic uncertainty has increased, which has also led to changes in customers’ attitudes towards price and quality. With the advent of the new wave of domestic brands going overseas, more and more cross-border e-commerce companies will choose value for money pricing to achieve higher gross profits or faster market penetration.
(2) Value-added pricing. Value-added pricing is not to adapt to competition by lowering prices, but to achieve product differentiation by adding value or services. For example, Haidilao increases the price of its products by increasing the value of its services, providing mouthwash, cosmetics, birthday services, etc., so that customers can perceive high value.
2. Cost-plus pricing method
Cost-plus pricing method refers to the method of determining the selling price by adding gross profit margin to the cost of the product. The key point of this method is to calculate the cost and the appropriate profit markup rate. The cost includes the product’s own value, freight, platform commission, promotion expenses, etc.
3. Competitive pricing method
Competitive pricing method refers to the method of determining prices based on competitors’ strategies, prices, costs and market supply. The characteristic is that the price level can be adjusted at any time as the competition situation of peers changes. When merchants enter a new cross-border e-commerce platform, they can refer to similar products to determine the selling price. Merchants should not blindly pursue prices lower than competitors, but should focus on cultivating their own customer base and find the most reasonable price positioning for goods through misaligned competition and differentiated pricing methods. At the same time, sellers should maintain a keen sense of the market and rankings, and monitor their product rankings in real time. 4. Product combination pricing method Traditional e-commerce generally adopts a product combination pricing strategy of 2:7:1, that is: 20% of the products must be priced low, creating a hot-selling product while creating an impression of high cost performance in the minds of consumers; 70% of the products refer to the average level of the overall market of the industry, and design a medium price according to the statistical formula “low price + (high price – low price) x0.618”. Practice has proved that the price at this golden section point can make sellers profitable and buyers satisfied at the same time; 10% of the products need to be priced high to improve the grade and image of the store. 5. Psychological pricing method When using psychological pricing, merchants should consider not only economic factors, but also psychological factors related to price. For example, customers usually think that high prices mean high quality, but which one is better, a $1,300 computer or a $1,000 computer? This requires buyers to compare them before they know. For example, if you sell a product for 199 yuan that generally sells for 200 yuan in the market, it will be easier for users to feel that it is affordable and promote consumption.
6. High-opening and low-ending pricing method
High-opening and low-ending pricing method means setting a higher price first, and then gradually adjusting the price according to market changes. For example, compared to directly pricing the product at 398 yuan, using the pricing method of “796 yuan with a 50% discount, 398 yuan after the discount” will have a better effect.