When the product enters the mature stage, you can take the initiative to analyze the relationship between sales and prices to find the most profitable pricing point. Since sales and prices are inversely proportional, for products with multiple SKUs, you can find a more profitable pricing range through the change of ladder pricing.
In addition, when most competing products impact the link, their competitive advantage lies entirely in price. If the quality of the other party’s products is acceptable, you can roughly calculate the profit margin of the competing products based on the other party’s product prices. If the strength of the other party’s store is weak, you can completely block the other party’s profit range through appropriate operations, thereby forcing competitors to retreat.
In the actual operation process, competitors often use similar products with low purchase prices for benchmarking. If the current product cost is 45 yuan and the sales price is 29.99 US dollars, the price of the competing product is 25.99 US dollars. According to the above pricing, the commodity procurement cost accounts for about 20% of the final sales, so it can be inferred that the commodity procurement cost of the competing product will not exceed: 25.99 x 20% x 6.5 = 33.79 yuan. By comparing with 1688 and other purchasing sources, it is found that the lowest purchase price of similar products is 30 yuan, but the product quality is average. At this time, it is not appropriate to directly reduce the price of the original link, but you can adopt the same strategy as the other party, use a new store and new link to purchase 1688 products for sale, and compete with the other party at a lower price of 0 profit of 18.79 US dollars, so as to protect the stability of mature products.
On the contrary, if the other party’s store is strong, it is very likely to rush the ranking at a low price in the early stage. At this time, you need to consider the actual situation of the product and the store to respond. If you think that the product has the potential to be a long-term hot seller and the store can accept 0 profit sales, you need to quickly accumulate orders and reviews through off-site deals, flash sales and other marketing methods, analyze the keyword exposure position of competing products, and seize the traffic entrance through advertising, so as to repel competing product links. On the surface, this operation sacrifices profit margins, but in the long run, the store has good cash flow and drainage styles, which are of great help to the subsequent new product promotion and brand building.