Setting prices when you’re competing with other sellers can seem simple. You can lower your price to be more competitive, raise it to preserve your profit margin or leave it alone at your preferred selling price.
But what about when you don’t have any competition? What do you do when…
- Selling your own branded or This is what you call products manufactu... More products?
- Creating hard-to-replicate product bundles?
- Your competition has sold out and you’re the only seller left?
Keep reading to find out more.
Remember, repricing isn’t just about beating the competition. In fact, it’s not about that at all.
Keep in mind that repricing is about maximizing your sales and maximizing your profit.
It’s easy for some automatic repricing software programs to decide on a pricing strategy when there’s plenty of competition. They just adjust your price until you win the This refers to the situation where a sel... More or until you start getting sales. Makes sense right?
But what do you do when you don’t have any competition? That’s when you need to become a repricing scientist.
What is a Repricing Scientist?
What do scientists do? They conduct experiments, review the results and try again.
That’s what repricing scientists do. Rather than settling on a single pricing strategy, we encourage Amazon sellers to experiment with different strategies, especially when it comes to repricing when you don’t have any competition.
That’s part of what makes Sellery so great. Instead of locking you in to a single pricing strategy, Sellery lets you make the rules and you can refine those strategies over time to decide what works best for your business. Repricing isn’t one-size-fits-all.
Time to Experiment
Setting a price when you don’t have any competition depends on many factors. The biggest is whether or not you expect competition in the future.
If you’re making your own branded products or selling bundled products, you may not ever have any competition! That’s a great situation to be in.
In this situation, you need to consider your stock situation. Do you have a never-ending supply of products? Or are you limited in the number of bundles you can create?
If you’re constrained by limits to your stock, you need to maximize the total value of that stock. You don’t want to sell your last 10 items for $10 each, when you could’ve sold them just as fast at $13 each.
Time to Capitalize
If you believe that your time with no competition is limited, you need to strike while the iron is hot.
Don’t raise prices too much, or you risk missing sales during your best opportunity to make them. At the same time, if you’re the only seller on a popular item, there may be no price that is too high.
Our recommendation is to start by pricing lower than you normally would. As you make sales, try to raise prices until the sales velocity decreases. Sales velocity is the rate of sales you make in a given time period.
If your sales velocity decreases, lower prices until it picks up, then begin raising it again.
Rather than just setting a high price or a low price, adjusting your price in this way will help you to maximize your overall profits.
List Price & Unit Session Percentage
Sellery: Create Your Own Pricing Experiments
When you don’t have any competition, take advantage of the data available to you. Use list price and unit session percentage to help you zero in on the optimal price for your items.
Sign up today and give it a try. 2-weeks, no cost, no commitment, and completely risk-free. We’ll show you how to get started and will help you create pricing strategies that work for your business.