This one is for anyone new to the basic concepts of repricing strategy. (Even you think you’re an expert, we can probably all benefit from a refresher course sometimes).
Pricing Rule #1: Repricing is about striking a balance. There’s no such thing as “the right price” (no one can predict what any item is going to sell for), so when you’re repricing, this is the balance you’re trying to strike (write this down):
“Getting highest amount you can for that item, while still selling it within your desired timeframe.”
That’s this entire game.
Pricing Rule #2: If item is not repriced, it’s effectively not for sale.
This sounds dramatic, but its true. That’s not to say that if you stop repricing completely, you’ll never sell another item again.
What it does mean, is that as you neglect repricing, other sellers underprice you. And if you get underpriced by too many sellers, customers stop seeing your offer. And if they can’t see it, they won’t buy it. Which makes your item effectively not for sale.
This is why repricing is mandatory.
Pricing Rule #3: You can (and should) price higher than lowest price a lot of the time
There’s a time and place for blindly matching the lowest price among your competitors and getting a quick sale (that place, specifically, is for lower demand items).
But always chasing the lowest price is losing repricing strategy. Prices go up and down all the time, and there’s no reason to assume the lowest price at this moment is also the best price (it probably isn’t).
That’s why NeuroPrice offers more flexibility than any other repricer, allowing you to price against the 2nd and 3rd lowest price (and we may expand to 5th lowest if we get a lot of requests).
Pricing Rule #4: FBA gives you a big pricing advantage.
I call the ability for FBA sellers to price above Merchant Fulfilled sellers “pricing leverage.” Prime subscribers generally only want to buy Prime-eligible offers, and they’re often willing to pay exorbitant amounts for FBA offers.
This means if you’re an FBA seller, for any items with high or medium demand – you are competing with other FBA offers only.
And as the only repricer with no FBA blindspots, FBA sellers using NeuroPrice are uniquely able to extract the maximum amount of profit from their inventory.
Pricing Rule #5: The higher the demand, higher you can price
Aka Sales rank is the most important factor in your repricing decisions.
You’re going to reprice an item with an Amazon sales rank of 5,000 completely differently than an item ranked 1 million. One is selling hundreds of copies a day.
With a high-selling item, the price jumps up and down so often you can reprice pretty recklessly (and infrequently) and still expect to get a sale eventually. Whereas with low demand items, you want to price more conservatively.
Pricing Rule #6: There is no “right price”
Mentioned earlier in this email: Its impossible to predict the eventual selling price for an item. So the perfect price doesn’t exist. All you can hope to do is get close to the most you can possibly get for an item, while still selling it in your desired time frame.
Pricing Rule #7: The price is always changing
Kind of obvious (you wouldn’t be using a repricer if this wasn’t extremely obvious), but a lot of sellers don’t accept just how fast prices change on Amazon.
It’s not important to react to every pricing change (that would be almost impossible, and not even a good use of time). What is important is to edit your prices often enough so you stay competitive (once a day is good).
Extended Video: The 9 Rules Of Pricing
This article explained the Top 7 Rules. Here's a longer video, with 2 more important rules of pricing:
Any questions? As always, hit reply and let us know.
-Peter Valley & Team Neuro