Top 9 pricing mistakes

This is an article about what not to do…

In a sense, there’s only two MAJOR pricing mistakes:

1. Pricing too high

2. Pricing too low

While these are the two Big Ones, there are many more.

Avoid these 9 things, and its hard to not make a ton of extra money with NeuroPrice.

Pricing Mistake #1: Pricing Too High

For example, taking a book ranked 100k and pricing it to be 10th in place on the logic “It will sell in 10 days.”

Stratosphere pricing is the enemy.

Pricing Mistake #2: Pricing Too Low

Examples:

· Always matching the lowest price.

· Underpricing other sellers.

Faster sales doesn’t always translate to more profits.

Both fear and greed will cost you.

Pricing Mistake #3: Not Repricing

Almost inevitably, when someone tells me their inventory isn’t selling, I ask how often they’re repricing. Usually I get an answer like:

· “I reprice almost every day.”

· “I’m usually in the lowest 2 or 3 prices.”

· “I do a pretty good job of repricing.”

These answers are always red flags. Usually I fight my way to the truth and it eventually emerges: They’re barely repricing at all.

Repricing is not something you do “when you get around to it.” It is a central part of running an Amazon business.

Pricing Mistake #4: Not Aligning Expectations To Reality

You can price as aggressively or as conservatively as you’d like – as long as you understand the consequences.

Pricing above multiple other sellers and then being confused when you don’t get a flood of quick sales is not aligning expectations to reality.

Chasing the lowest price at all times is fine, then being confused when your profit margins are razor thing is not aligning your expectations to reality.

When you pick a strategy, know the consequences.

Pricing Mistake #5: Panic-Dropping Prices

A lot of sellers watch every item closely once they list it for sale – then when it doesn’t sell, panic and drop the price like crazy.

When a price drop is crazy and unrealistic, you can wait it out. Prices bounce back.

You don’t always need to be the next sale.

Pricing Mistake #6: Pricing Based On Sub-Condition

How much do Amazon sellers care about condition? Not as much as you’d think.

You are still competing against offers in worse condition. But take a common example of listing a book in Very Condition, and you have a competing offer in Good condition. That Good condition offer is still competitive, and should not be ignored.

A lot of sellers in this circumstance would only price against other VG offers, and that would be a big pricing mistake.

Pricing Mistake #7: Pricing Based On Extraneous Data

IF you’re pricing based on anything other than “is this Used or New,” you’re probably overthinking it.

Comparing your price to eBay prices, prices of other editions or formats, etc, is almost always a mistake.

Pricing Mistake #8: Underpricing

Don’t engaged in a desperate race to the bottom. Matching a price is almost always better than underpricing.

When you underprice, that extra 1 or 10 cents doesn’t matter that much to buyers. That extra 10 cents doesn’t matter for the Buy Box.

In a desperate underpricing way, everyone loses.

Pricing Mistake #9: Trading Too Much Risk For Too Little $$$

Never invite large risk for a small profit.

A lot of sellers price way above the lowest price offer to get some extra profit. But in the process, they also invite a lot of extra risk. Risk in the form of prices dropping, an item never selling, etc.

That extra $1 isn’t worth it. When the upside is small, take the money and run.

Endnote

Now you know what NOT to do when repricing.

Any questions? As always, let us know.

-Peter Valley & Team Neuro