Black Friday is coming up just around the corner, meaning it’s time to get your business ready for the busiest shopping day of the year. Learning how to price your items for Black Friday is incredibly important if you want to attract excited holiday shoppers.
Establishing your Black Friday prices ahead of time is key to maximizing your profits and generating new customers. By taking the time to learn how to price your online and in-store products, you can boost sales and beat out your competitors this holiday season.
Tips to Price Your Products for Black Friday
Ready to learn how to price your products for Black Friday? It’s easier than you might think. Just follow these tips to get started.
1. Research the Competition
First and foremost, check to see if your local competitors have announced their Black Friday deals.
After researching your competitors’ discounts, you can determine whether or not you can match or even undercut their prices. While you shouldn’t drop your prices lower than you can manage, researching competition is a great way to ensure you can remain competitive during the holiday season.
2. Understand Your Margins
In order to offer discounts without sacrificing profits, you have to fully understand what it costs to make and sell a product or service.
Start by calculating your breakeven point for each product. The breakeven point is the point at which you can sell a product without making or losing any money. Once you calculate your breakeven point for a product, you can determine how much you can discount that item without losing any money.
3. Get Rid of Seasonal Items & Perishables
Seasonal items and perishables are great items to offer huge discounts on. Seasonal items will soon be unsellable, making it a good idea to drop prices on these items to attract customers during Black Friday.
By offering steep discounts on seasonal and perishable items, you can boost sales without having to sacrifice revenue on more profitable items.
While you may end up breaking even or even losing money on your seasonal products, increased sales of other items may be more than enough to make up for it.
4. Use Loss Leader Pricing
Loss leader pricing is a common strategy that is used throughout the year to help businesses boost their sales, and it can also be a great strategy for determining how to price your products for Black Friday.
Essentially, loss leader pricing is the practice of selling certain products at a loss in order to boost sales of other, better-selling products. This strategy can be incredibly effective in attracting new customers to your business and encouraging them to purchase additional items.
When to Start Advertising Black Friday Deals
After you determine how to price your products for Black Friday, you need to decide when to start advertising your Black Friday deals.
There’s not necessarily a right answer here. Of course, you should begin advertising early enough to ensure that your customers are aware of your Black Friday discounts in time for the holiday.
Generally, big box stores tend to start advertising around the first or second week of November. This gives consumers plenty of time to consider their options ahead of Black Friday. If you’re not sure when to start advertising your deals, anytime between November 1 and November 20 is a safe bet.
Don’t Forget Your Online Prices
In general, your pricing strategy for your online store should be the same or similar to your in-store pricing strategy.
However, it’s worth considering offering a few online-only discounts in order to attract customers who would prefer to avoid those notorious Black Friday lines.
Additionally, dropshippers and other online-only retailers may be able to cut prices even more as they don’t have to worry about expenses related to owning a physical retail location.
Black Friday is a particularly exciting day for consumers, but it can be just as great for businesses. This day of discounts can offer several opportunities for businesses to attract new customers, boost sales, and maximize their profits.
However, if you want to be able to achieve these benefits, it’s important to take the time to determine how to price your products effectively. By following the tips outlined above, you can learn how to price your products for Black Friday.
Keep reading how to price your products and services throughout the year to attract more costumers and increase your profits.