Pricing strategies for online and instore shopping
Pricing Strategies
A question that the zoen.shop is asked frequently is about the pricing strategy, should there perhaps be a premium applied for products and services sold through the video shopping channel? This is a very fair question, and the answer is really to see the pricing aspect through the eyes of consumers, indeed, you can look them in the eye with video shopping.
The science of pricing is something that the very best retailers, E-tailers and now V’tailers can make as simple or complex as they wish. The golden rule is that price is what you offer but only the perceived value is what is accepted. Look at a simple traditional business model as a case in point. A restaurant might offer a daily menu at an attractive set price or specials that waiters and waitresses offer the clients.
There are many reasons for this dynamic pricing, they are selling “off-page”, so are V-tailers. By selling off-page, we mean that the offer and the acceptance of the offer are made between people and not simply a clickthrough from a page into a shopping cart. Let’s take an imaginary business, “Wine Weekends”.
Adding Value, Creating Price
Our imaginary vendor, “Wine Weekends”, is a vineyard that has been selling its renowned wines for generations. They have two primary income streams, one being visits to the vineyard with elegant vaulted wine cellars in the grounds of a rustic farmhouse that is two hundred and fifty years old. “Wine Weekends”, offer wine tasting with cheeses made by artisans.
There is the added ambiance of folk music to entertain visitor groups. Secondly, D2C (Direct to Consumer) wine and cheese sales, whereby exclusive wines are sold. In addition to wine that has been harvested and bottled by the family, Wine Weekends’ fast-growing V-tail online business is a premium stocklist of highly revered bottles for wine connoisseurs.
Seasonality Premiums
Christmas is coming and wine is selling through the webshop but now a video channel from zoen.shop lets consumers order. The pricing strategy question really becomes exciting as not only are wines sold but the company is selling weekend wine sampling events as Christmas gifts. Having the luxury of face-to-face relationships with consumers adds a completely different interaction experience, part of the farmhouse is a mini webcasting studio with wines and cheeses in view. The average sales value is around double from the previous Christmas and upselling is commonplace day-to-day. By being face-to-face with customers, the search for higher spending customers is less relevant, because customers are simply spending more and loving the humanized personal service.
Price Elasticity
Consumers are smart and “most” merchants fairly minded and ethical, in addition, we know that consumers compare pricing and product offers multiple times before buying. We also know that there are very well-known reputational tools with reviews and star ratings evaluating vendors. So, can a V-tailer offer a price strategy that sells the same product through one channel at a premium to another channel?
The answer is that products bundled into special deals, advanced product launches, and channel exclusives can. This is not simply the case of marking up prices but more a case of adding a premium service or productization priority to the video channel. We provide the science, you provide the art.
Let’s Connect.
Let’s get you up and running for V-tail, zoen.shop, ready to meet you face-to-face, because video channels bring us together.
