I keep saying that I built NeuroPrice to be simplest repricer, that anyone can figure out without having to watch a single video.
But you still may have concerns that you’re “doing this right.” So let me get you totally comfortable with choosing a repricing formula that fits you…
There’s no such thing as the “right price”
Let’s get this out of the way: It’s impossible to do this wrong, because its impossible to do it 100% right.
You can never predict what the “best” price for an item is. So all you can do is hope that the price you set gets you the maximum amount you can for your item, while still selling it before the world ends.
So it should give you a little more confidence to know there is no “right price.”
That said, there are prices that are much better than others, so lets give you some general repricing guidelines and formulas…
The three basic repricing strategies. However I can’t stress enough how overly simplistic these are, and I don’t recommend blindly following these. They can be fine for awhile if you’re a newer seller, but as you get more knowledgeable, you’ll want to refine these formulas.
Repricing Strategy #1: Maximum Sales
The simplest repricing formula: Always be the lowest price for your fulfillment channel and get the quickest sales.
With this approach, you’ll always get the maximum sales, but you’re sacrificing some profits along with it by always being the lowest priced offer.
Here’s the (super simple) formula:
Merchant Fulfilled seller?
1. Set rules to “match lowest overall.”
2. That’s it.
FBA seller?
1. Set rules to “match lowest FBA.”
2. That’s it.
FBA seller: Alternate formula
1. Set rules to “match Buy Box.”
2. That’s it.
Repricing Strategy #2: Maximum Sanity
A two or three tiered pricing approach - simple enough that that it won’t give you headaches, and you won’t be worried about giving up a ton of profits.
Merchant Fulfilled seller?
1. Set rules to “match lowest overall” for low-demand items
2. Set rules to “match (or below) 2nd lowest” for mid-range demand.
3. Set rules to “match (or below) 3rd lowest for high-demand.
FBA seller?
1. Set rules to “match lowest FBA” for low-demand items
2. Set rules to “match (or below) 2nd lowest FBA” for mid-range demand.
3. Set rules to “match (or below) 3rd lowest FBA” for high-demand.
Repricing Strategy #3: Maximum Profits
A complex, multi-tiered pricing formula that takes into account all key variables, and maximizes your profits for every item.
By the nature of it being nuanced and conditional, there’s no template for a formula like this. But here’s the outline:
FBA or Merchant Fulfilled seller:
1. Set multiple (4+) rank-based rules.
2. Add multiple SKU-based rules.
3. Edit all global settings.
How to decide?
Ask yourself this question: Are you a margin seller, or a volume seller? This will define what approach is best.
The way to know is to answer this question: Do you run out of inventory to source before you run out of money, or do you run out of money before you run out of inventory?
If you have more access to inventory than you do money, being a volume seller is best. You should be focusing on turnover, so you can buy more inventory, feed it into Amazon, and repeat the cycle.
If you have access to more money than you do inventory, being a margin seller is best. Your focus in getting the most possible profit from you inventory, even if it means waiting longer.
Volume seller = maximum sales strategy.
Margin seller = maximum profit strategy.
Either one: = maximum sanity (this approach can fit any seller)
Of course, I have a video on this
Check out “Choosing A Pricing Formula” (video), where I spend way too much time talking about this exact subject.
As always, hit reply with any questions…
-Peter Valley & Team Neuro