By Ruth Richter • February 27, 2019
Growing sales isn’t just about product and sales people. In Part 1, we looked at complementary strategies for increasing revenue in 2019. Pricing also plays a part, and you might be surprised to learn that raising prices isn’t the only option for growing sales.
Pricing should be heavily influenced by your product’s value, perceived value, customer rating, and market and competitive circumstances. In Part II, let’s take a look at some pricing strategies that could boost your sales growth and increase revenue.
The Art of the Pricing Strategy
While it might be tempting to set a price and stick with it all year long, consider pricing as more fluid, able to adjust to the ebbs and flows of the economy. Price changes should encourage the market behavior you want.
- Has your only historical pricing change been an increase? Price increases are typical and expected to a point. Depending on the product you market, pricing may need to increase to reflect a change in raw material prices. Increases will immediately impact revenues and profits if the increase isn’t detrimental to the ability to sell the product or solution. Pay attention to how your competitors are pricing, as well, to ensure your increases are in line with theirs. On the other hand, if the cost of raw materials drops, you could consider passing that savings on to your customers. Reduced pricing can result in increased sales, even taking some market share from competitors. If you opt to raise prices, consider a regular—yet minimal—increase. Small percentage increases will often be expected and met with little resistance.
- Offer product bundles. In Part I, we recommended partnering with coordinating products from other companies. This can work even within your own product offering. Reviewing sales data may uncover certain products that are typically purchased together. Bundling these products at a discount can encourage additional spending that might not typically occur if all products were offered at their individual prices.
- Special discounts that create a buying opportunity. It’s easy to create sales environments with discounts. These discounts can range from seasonal discounts, such as back-to-school or tax season or holidays, to quantity discounts for buying two or more of the same product. Properly marked discounts can create a buying opportunity in a customer’s mind that wouldn’t normally be acted on.
- Clip coupons and offer rebates. While rebates and coupons might seem like a quick way to lose money, not only will they spur sales by increasing value perception, but studies show that only 50 percent of rebates are actually redeemed. This means that offering a rebate can generate sales without necessarily negatively impacting your profit. Small companies can also offer coupons through deal sites such as Groupon and LivingSocial, exposing their businesses and services to larger markets and drawing them in with the reduced pricing offers.
Know the Deals with Data
No matter what your revenue increase strategy, you’ll need to support it with data. Your data can help you determine the best pricing promotion to follow by showing purchase trends, raw materials costs, typical purchase histories, and popular products to consider discounting. The Sage 100cloud data holds the answers to a lot of these questions, but integration with your ecommerce site, third-party sellers, warehouse management systems, and other data systems will give you the clearest picture.
Fortunately, integration is easy with IN-SYNCH by ROI Consulting. This proprietary Sage 100cloud integration software offers fast, secure, direct integration to keep data flowing freely between systems. Without manual bottlenecks to constrain your data, you can easily find and review all the information you need to make the best pricing decisions for your sales revenue growth.
Integrated Pricing Strategies with IN-SYNCH
No matter what revenue growth strategy you’re following in 2019—whether it’s market expansion, pricing, or a combination of the two—it’s data access that will empower your decision. Find out how IN-SYNCH data integration can inform your revenue growth decisions and help you plan for 2019, 2020, and beyond. Contact us online or call 402-934-2223 ext. 101 to see IN-SYNCH integration in action.