Popular online shopping sites like Nordstrom, Best Buy, and other retailers give their store managers the power to share price deals. Additionally, other retailers such as Staples, Toys R Us and Target offer price match policies on their products. Clearly, this is quite a promotional environment.
And with the increase in price comparison tools available online, everyone is trying everything in their power to come up with better deals. Thanks to online markets, everything is relatively easier with so many discount coupons available now!
But if you ask any of your friends or family, the answer would be the same. “I hate paying full price for anything.” Surprisingly, not all shoppers like to collect coupons. Instead, they prefer to bargain their way to a bargain.
However, you will always think about your options in person when considering negotiations. For example, it is common practice when you go to a store to buy a new car, house or dress. But the online market is also looking to introduce a similar concept.
Here we are talking about the “name your pricing business model”. Once again, stores like Buyr pave the way for this new type of e-commerce bargaining.
Why is there so much noise around this not so old trading strategy? Read on and you will find out!
Trading works: It’s the oldest trick in trading for a reason.
People are always looking for the human element when buying anything online in this digital age. However, the “Buy Now” business model used primarily by major online shopping websites is more like client-side technology integration. This is why you will find customers switching to different online marketplaces if they ever get the chance.
However, by introducing a negotiation model in pricing, sellers will start a dialogue between buyer and seller. As a result, not only will the buyer and seller find ways to arrive at an acceptable price, but the buyer will also establish a level of trust in the product and the seller.
It will create a win-win dynamic between buyers and sellers. But just saying it’s beneficial for both of you doesn’t make it an attractive option, does it?
So what is a trading pricing strategy?
Imagine this. There’s a typical day when you’re browsing online for items on your shopping list. They are available at a specific price. You study and compare prices on the best online shopping websites and then click “Buy Now”. But what if you could negotiate the price?
Name Your Own Price is a unique pricing strategy that allows customers to pay the price they want. But the offer is accepted if the retailer approves it. This is how it happens!
Sellers list products and provide customers with their threshold prices.
If the customer is interested in buying an item, they will make an initial offer.
The transaction occurs if the seller approves the price based on your set threshold price.
It is more like a reverse auction. This is how companies like Buyr are slowly and steadily introducing this traditional yet novel concept to the online marketplace.
How is it mutually beneficial for customers and retailers?
Many of the major online shopping sites like Buyr, Garmentory, Nyopoly, and OnlyAtoms approach this price negotiation model from different angles. Simply speaking, allowing your customers some bargaining power helps online retailers in the following ways:
Helps you gain customer trust: Today, gaining the trust of customers is a challenge. And with extreme competition, it becomes even more difficult to reach customers in the first place. But if you make them the center of your pricing strategy, you’ll eventually build a solid foundation.
Improve customer loyalty: If you provide impeccable customer service, efficient product delivery, winning customer loyalty is easy. But if you add an option where customers feel privileged and get personalized discounts, you also have a chance to win their hearts. And when the customer is happy, it will retain customers, which takes a lot of effort.
Bridge the gap between seller and buyer: Why do customers switch to other providers? It’s because of the lack of communication. However, with a negotiation model, you are opening a channel of negotiation and communication with the client simultaneously.
Help create a smart pricing strategy: If you want to make a decent profit margin, you need to develop a pricing strategy. Of course, you can start by setting the same price as your competitors. But once you get a variety of offers, you can understand which is the best offer to attract your customers without losing your profits in the process.
But that is not all!
At the same time, it enables customers in the following ways:
Best deals: People love discounts. This is why coupons and spin wheel games are so popular in the online retail space. However, with negotiation, the buyer has the opportunity to access a price range instead of a fixed price.
Psychological relief: With the impact of the pandemic on the global economy, it is quite evident that people are focusing on saving more than ever. With this pricing model, customers get psychological relief that there will be no overspending.
Save time: With so many options available today, it becomes quite bewildering to go through each site. However, a customer does not have to switch to different sites with price negotiation options. All they have to do is bid the price, wait for approval, and close the deal. It is a cost-effective and time-saving approach.
With the same focus, Buyr.com is helping its customers find the best deals and creating a buyer-seller friendly environment.
People love to negotiate. And if you give that power to your client, they will be interested in doing it. This negotiation-based pricing strategy allows the buyer to save more and allows sellers to sell more.
The revival of this old trick in the modern online market is trending now. Therefore, it is time for customers to start looking for such sites instead of getting stuck with the old concepts of online shopping.
Image credit: Karolina Grabowska; pexels; Thanks!