Holiday Pricing Tips
The holiday season is upon us. Shoppers are looking for deals as much as they are looking for those special gifts for family and friends. With that in mind, there are some important dates to focus on service and pricing.
Black Friday and Cyber Monday have passed, but there are other important dates that you may want to plan sales and promotions. Let’s start with Green Monday. It’s the second Monday in December and typically the last day for standard shipping to arrive on your customers’ doorsteps before Christmas Day.
Next is Free Shipping Day on Friday, the 15th. This is something that Amazon started some years ago and hundreds of retailers have joined in. It’s another fun way to promote deals and promise customers that their purchases will arrive before Christmas.
Last but not the least is Super Saturday and it’s the busiest of the holiday season—even more than Black Friday. It’s the last Saturday before Christmas and this year it’s the 23rd. Everyone shopping on this day will be looking for those last-minute gifts that are a combination of something special at the right price for the people they may have forgotten.
Learn from the Past
Implementing the right holiday pricing strategy starts with looking back on past sales. Smartwerks and other point of sale systems can easily pull your sales history for you. Also, look at the promotions and advertising you had during the holidays last year. Together, the marketing and sales reports can show you what worked and what didn’t.
What’s Your Competition Doing?
The holidays are always a time for lower prices and major sales. Take a look around at your competition and their pricing strategies. They may be setting their sale prices lower than what you can compete with, but don’t fret, because they will quickly run out of inventory. The end result will be higher margins for you.
This is the best time to be patient and get the price you want. It’s a seller’s market. The opposite may be true the rest of the year, so you’ll want to capitalize on it, now.
When to Raise Prices
After looking at your sales reports, you may want to raise your prices on some of your best-selling items. Raising prices on top selling items capitalizes on your excellent customer service. Your customers are willing to pay a premium for the best customer service, because they know it will save them time and money if they have a return or need help.
Upselling and Add-On Sales
The holidays bring a lot of new traffic into your store. These first-time shoppers are very important to the future of your business, which is why it’s a perfect time to show them the value of your services. Upselling is a great way to show off your expertise with the products that you sell. It’s also a great way to engage more with your customers. They get to know you personally, while they learn more about your products.
Another way to increase sales is to offer product bundles. People want to feel like they are getting more value for their dollar. But, remember that customers also want the option of buying the items separately.
Best Practices for Pricing
Traditionally, the holidays bring a huge increase in revenue, enough to generate momentum going into the new year. It’s also a perfect time to have a pricing strategy in place to increase your profitability. Getting organized and taking advantage of special sale days can become your secret toward a successful holiday season.