How to Create an Enticing Pricing Strategy with Consumer Financing from ChargeAfter
Choosing how to price the products that you sell on your eCommerce platform is more complex than you may have originally believed. Pricing strategies are significant pieces of your marketing puzzle that it would be wise to consider thoughtfully as you hope to outshine competing companies within your industry. Smart pricing is intentional, powerful, and can drive significant sales, ensuring that the best eCommerce businesses remain at the forefront of their industries. In this article, we explore how an enticing pricing strategy with consumer financing will help your business leverage new and existing customers for more profitable returns and suggest several strategies to model your pricing after.
Pricing Strategies with Consumer Financing
Developing a pricing strategy alongside the integration of consumer financing is one of the fastest ways to see an increase in sales as a result of appropriate and attractive pricing. This is because consumer financing ensures that your pricing strategy remains competitive when customers require a loan to purchase your products. How does consumer financing do this exactly? Well, the best consumer financing platforms, like ChargeAfter’s multi-lender solution, allow shoppers to apply for zero-interest loans on the websites that incorporate the plugin. This is an almost immediate process that requires no credit checks on behalf of the consumer, ensuring that a wider consumer base can shop your products regardless of their price. Implementing this kind of consumer financing tool ensures your pricing strategy is competitive, consumer-centric, and encourages greater sales.
Below are a few suggestions to help you create an enticing pricing strategy that aligns with your business and accompanies powerful consumer financing platforms:
Product Pricing Differentiation
Analysis paralysis affects consumers when there are too many decisions for them to make on a particular platform. When this happens, consumers become overwhelmed and decide to seek business elsewhere, causing many eCommerce platforms to lose potential customers in the process. It is important then, to differentiate your products and the prices that you offer. Rather than including several similar products within a similar price bracket, distill your catalog so that you have a few options within a low-tier, mid-tier, and high-tier price range. Giving customers fewer pricing choices helps them navigate your shop quicker, encouraging greater sales.
Bundling Similar Products
It may be wise, if you offer several products within a similar category or complementary products that work with one another, to adopt bundling options for your consumers. Bundling options reduce the number of choices consumers have to make while providing greater value through bulk buy discounts. If you are unable to bundle products, then you can adopt cross-selling and up-selling strategies at checkout alongside consumer financing features. Plugins will allow you to sell similar or related products at checkout, encouraging consumers to create their own bundles before making a purchase. You can bundle and cross-sell at small discounts to support a stronger pricing strategy for your popular and less popular products.
Another popular pricing strategy is to anchor product prices against more costly offerings. By placing products alongside more expensive products, pricing strategies create a consumer perception of the value of each product. With a greater understanding of the differentiating between the products and their prices, customers are more inclined to sway towards the less expensive products that they will consider a bargain. While it may seem counterproductive to improve the sales of less costly items, a greater volume of monthly sales will drive profitable returns in the long run.
With the integration of consumer financing at checkout, eCommerce platforms can create competitive pricing strategies using the aforementioned models as a foundation and drive greater sales within a business month.