The second scenario is what we mean by an “extremely competitive” situation, and frankly, most companies don’t fall into this category, which means they usually have a lot of room to optimize their prices.
And even if you're selling iPhones or other highly competitive items, small price changes (like a 1% change rather than a 10% change) will actually help you find the sweet spot for those, too. Plus, an iPhone seller is likely also selling some other items (like phone accessories) with more wiggle room — and therefore has some untapped opportunities in other categories.
Myth #5: It's not worth the time to optimize all bulgaria telegram number database prices based on price elasticity of demand
Having hundreds or thousands of products in your catalog can seem overwhelming to manage and price. And we agree, in many cases it usually doesn’t make sense to price tons of products and analyze the data manually. In fact, it usually takes so much time to sort through that much data that it’s almost impossible.
Bring an AI-powered pricing tool into your operation that will help you fully automate price optimization and price changes, and help you find the optimal price and maximize profits for as many products as you need.
Conclusion: Price elasticity-based pricing is the best choice for (almost) all e-commerce businesses.
Hopefully, by now you have a good understanding of why it is important to understand the price elasticity of demand (or inelasticity) of all your products and how this should impact your pricing strategy.
There are hacks for everything – hacks for losing weight, hacks for getting rich, and even hacks for repurposing your favorite Swedish furniture in ways you never imagined. Turning your Bekväm stool into a cat corner is great, but sometimes there are no easy shortcuts to happiness. Sometimes you have to look at the practical work that goes into eating healthy, saving money, and giving Lady Hamilton a throne fit for a feline.