Dr. Glenn Gearhart CEO of World Market Vendor Services, Inc. provides News and Commentary

The Low Price Leader Approach to Increased Sales

The low price leader approach to online sale


Low price leader
Price is a key factor in many sales decisions: being the low price leader, and servicing the “I-Paid-Less,” and the “I-Bought-It-On-Sale” market always captures sales.

For many customers, the purchase price is the only determining factor to the buy selection process. In many buying decisions the buyer knows before shopping exactly what they want to buy. The only question is, who offers the product at the lowest price? The buyer knows what he wants because he is: (a) replacing an item he already has and loves, or (b) a family member or friend has the item and the buyer must have one too. In these instances, you can become the seller by being the lowest priced supplier.

For a large segment of the low price customer market there is another important factor. It is the need and obsession to be able to claim “I-Paid-Less.” It could be one cent less, but it is a real life “I Beat You-Game.” This type of buyer (game player) wants to be, and he may go to great lengths to claim, he is the winner of the low price game. I call it the “I-Paid-Less” marketing strategy. Again, with this group of buyers, you can become the seller by being the lowest priced suppler.

There is another similar, but slightly different, group of consumers that has a great need to claim to friends and family: “I-Bough-It-On-Sale.” It is another form of the real life shopping game -- “I got a great deal and paid much less that retail!” Many shoppers to will buy items they do not need or even want just to be able to make the claim: “I beat the system.”

There are at least two types of images that can be used to sell to these low price shoppers or “Bargain Shoppers.” A business can choose to use either one or both of these “Low-Price” market strategies.

Low Price Leader Image
The “Low Price Leader” is a market strategy based upon you constantly monitoring all your competitors’ pricing, and constantly adjusting your pricing to assure you are offering the product at the lowest price of anyone in the eCommerce market place. It may only be one cent less, but you are clearly the lowest.

Many buyers use online product price search engines or online product price compassion services. Using the low price leader marketing strategy, your product will come up at the very top of the list. With the Low Price Leader strategy, you will get the shoppers full attention because your product is at the top of the search results list.

Some vendors' Low Price Leader image is based upon the total price the buyer needs to pay including shipping. Other vendors limit the “lowest price” definition to be the product price and do not address taxes or shipping.

Using either approach, low pricing will get your band and your low priced product into the viewing window of many, many buyers, in quick order. It requires time and resources to monitor the competitors and to rapidly adjust prices and stay on top of the game. But in the eCommerce market place, where product search engines can bring all of the world vendor’s products and pricing to the eCommerce shopper within seconds, you have the power at anytime to be at the top of the search results list with the lowest priced product.

Great Sales Image
The Great Sales market strategy is different than the Low Price Leader Image. In this strategy you are known as a quality vendor, and sell quality products at a fair price. To this known image, is the consumer’s knowledge that you often have sales, and when you have a sale the buyer gets Great Value at a lower price. Your sale prices may not be the lowest price on the Internet, but that’s ok because it is low price, at a Good Value.

Commonly, this market strategy is implemented using special sales pricing for a short time. Examples are: The “one-day-sale,” “the 48 hour sale,” “the labor day sales event,” the “Flash Sale,” or any type of sale for any reason. The other approach is to issue short term discount coupons and other discounts.

Whatever sales techniques you chose, your ultimate success is based upon one very important factor- it must sell! You must remember, “Move It!” Product listing pictures and descriptions do not bring revenues to your business, only purchases by real buyers bring revenues.

I recall a favorite saying of my father: “Out of Sight is Soon Out of Mind.” If potential buyers do not know you are offering them the item they are seeking, you will never sell it to them. Therefore, get it in front of them. Make sure your market of potential customers is actually aware of your product.

There are a number of ways to gain access to a large customer base. However, in general, the more distributions channels you have to get your product recognized by potential buyers, the better. That is why you need to consider adding World Market to your marketing and sales program.

No one else can bring you online cash paying viewers from over 235 countries and territories, covering up to 2.4 billion internet users and one billion smartphone users! That is an enormous expanded market for your business.

To learn more about the “I-Paid-Less” and the “I-Bought-It-On-Sale” market, continue to monitor this Blog and visit the World Market websites.


References:
http://www.internetworldstats.com/stats14.htm
http://www.internetworldstats.com/stats9.htm