Special Edition… (just for very important stuff.)
Want to double or even triple your profits? Read on…
1. How Dynamic Pricing will change selling on the Net
2. How you can try Dynamic Pricing
1. How dynamic pricing will change selling on the Net
Dynamic Pricing is going to be HUGE.
You probably know the 4 Ps of Marketing 101: Product, Place, Promotion, and Price. If you're selling, you want to optimize them all.
The first three are covered in depth on the Net. However, Price has been almost totally ignored on the Net.
That's odd, because Price is extremely important.
“The right price extracts the maximum dollar from the perceived value built up by the other 3 Ps,” says Ken Evoy of SiteSell, which is following up the launch of “Make Your Price Sell!” (MYPS!) with the launch of Dynamic Pricing.
“The Perfect Price maximizes profits, often doubling or even tripling your NET return.”
With dynamic pricing, the price rises and falls constantly, perfectly attuned to supply and demand.
Dynamic Pricing is being used now on the MYPS! site. You can actually see the numbers flicking over, rising or falling.
Before the Industrial Revolution, goods were priced by haggling. Vendors could see competing vendors' prices for potatoes and balance that against buyer demand, and constantly adjust their prices accordingly.
It was a very raw, low-tech kind of Dynamic Pricing, Ken says.
Then came the Industrial Revolution, mass production, mass marketing and static pricing. Want to buy a particular shirt at Wal-Mart? The price is static at $29.99. Apart from the occasional sale, the price stays the same.
“Mass marketing simply does not allow for any kind of Dynamic Pricing. Static pricing WAS the perfect solution for a mass-marketing society.
“The Internet will change all that,” Ken says.
Already, we see signs of dynamic pricing:
Group buying sites like Mercata.com put pressure on
More and more B2B (business to business) sites are using
a variety of auction formats (for example, Dutch auctions,
reverse auctions) and exchanges to price products.
C2C (consumer to consumer) sites like eBay use auctions
to create amazing, rich technicolor marketplaces.
“So far, though, in straight one-on-one, customer-vendor, transaction-based sites, static pricing still rules. Yes, companies like Priceline.com break that rule – customers can ‘name their own price'. But Priceline is the exception that proves the static pricing global rule.”
Not for long…
“Static pricing worked because it was simply the most efficient way to handle matters, given the technology at the time. Imagine Wal-mart haggling over the price of every single item sold. Imagine CONSTANTLY balancing supply and demand for their millions of items in stock. No way.”
However, there's now a more efficient way to sell, for both merchant and buyer – through Dynamic Pricing. With Dynamic Pricing, the price fluctuates according to supply and demand.
“The price of a product becomes more like the price of a stock on a stock exchange… ADJUSTING constantly, a perfect reflection of market conditions at any given moment.”
The result? The MYPS! Pricing Manual has a great quote from Samuel Pettengill, a U.S. Congressman from the 1930s:
“The successful producer of an article sells
it for more than it cost him to make, and
that's his profit. But the customer buys it
only because it is worth more to him than he
pays for it, and that's his profit. No one
can long make a profit producing anything
unless the customer makes a profit using it.”
With Dynamic Pricing, the customer buys at a price that balances his cost with his profit. The merchant extends his market by capturing buyers who would never purchase at a “too-high,” static price, yet will also sell at higher prices to less price-sensitive customers. Both parties win and maximize profits.
Maximizing profits is a wonderful reason for using Dynamic Pricing, but here's another reason – the GIMMICK appeal.
Dynamic Pricing is definitely NOT a gimmick, but it looks a bit like one.
Imagine selling your ebook – created with the help of “Make Your Knowledge Sell!” – https://www.associateprograms.com/myks – and the visitors see the price rising: $47.05, $47.06, $47.07…
“Hey, take a look at this! I must get that for MY site,” your visitor will say.
Even if it didn't maximize profits, I think Dynamic Pricing would grab merchants' attention and be in huge demand. It's FUN.
See it in action at the “Make Your Price Sell!” site. To see the numbers flicking over, click on the Order Now button.
2. How you can try Dynamic Pricing
Here's how to sample Dynamic Pricing.
STEP 1: Find the perfect price for whatever you sell, or are considering selling (a feasibility study can save a lot of grief), on the Net.
(Take advantage of SiteSell's ridiculously low research price for “Make Your Price Sell! (MYPS!) Where else could you hire a $15,000 consultant for less than $30?)
MYPS! helps merchants find the perfect price for a product. It's a new web-based tool which turns the art of pricing into an exact science. There is no software to download, nothing to learn. If you can point and click and use a browser, you're all set.
Now MYPS! is being sold using Dynamic Pricing.
“MYPS! is the first product on the Net to be fully dynamically priced,” Ken says.
When you visit the site, you'll see the price for MYPS! is either rising or dropping.
Every time a sale occurs, the price increases by a small amount, spread over 30 minutes. So, depending on whether there have been orders in the last 30 minutes, the price might be ticking UP or DOWN on the Order Page.
There are two ways to buy.
Just like in a stock market, you may purchase MYPS! “at the market price” (at the current price you see ticking on the Order Page). If the price seems too steep, you may submit a bid below the current selling price.
If the price of MYPS! drops to the level of your bid, your order is filled.
As a customer, this means you receive MYPS! at a price that makes the most sense to you.
Here's what this means to you as a merchant…
“There's no doubting the power of Dynamic Pricing,” says Ken. “It will replace fixed pricing at transaction-based sites within five years. Fixed pricers will suffer against competitors who price dynamically.”
STEP 2: Think seriously about how you can implement dynamic pricing before a competitor does.
You can see Dynamic Pricing in action here:
Here's what to do:
Click on the Order Now button….
Look for the links that say…
“In a hurry? Read the 3min review.”
“Click here to see why the price is changing.”
This link explains the entire concept, and how it will result
in greater profits for you.
“Click here to submit a bid “below the market.”
This link explains how to bid for MYPS!
All the best
P.S. Dynamic Pricing is just another example of the brilliance of Ken Evoy's SiteSell team. If you haven't joined the affiliate program, you're missing out on a very good thing.