Episode 255 - Why Your Prices Are Probably Wrong

eCommerce Evolution

Price. It’s an emotional topic for shoppers and for brands.

As shoppers were more influenced by price than we care to admit.

As brands we’re often afraid to change our prices. And our current prices were probably created a long time ago. It’s almost a certainty that they price for at least some of your products is wrong right now.

Byron Myer’s is a super smart dude. He started Inogen, a med-tech business, while in college and took it public in 2014. Now he runs Glimmer Wish with his wife and daughters. He used price theory and price strategy to add tens of millions in sales at Inogen. He’s also used it to scale Glimmer Wish from 0 to over 7 figures in less than a year.

And this isn’t a “let’s raise prices a bit and see what happens” approach. This is a scientific, mathematical way to find the optimal price to maximize profits.

Why is your pricing wrong:

• It’s likely based on flawed strategies like competitor benchmarking or cost plus. Both strategies are ok to start with but do NOT produce your optimal price for total profits.
• You’re following old customer psychology that states you should always charge $19.99 instead of $19.97 instead of $20 or $22. Often this is incorrect.
• You haven’t changed the price in over a year.
• In the current environment if you’re not changing price or running tests quarterly, your pricing is probably off.

This topic will make you Cold. Hard. Cash. Give it a listen!