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PDF How to Sell at Margins Higher Than Your Competitors: Winning Every Sale at Full Price, Rate, or Fee

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A pricing model that develops with you might be exactly what you need. Once upon a time, merchants would stick on less expensive plans despite generating large revenues. BigCommerce told us dashboard notifications and emails alert customers of any upgrades. You will have plenty of warning your plan and bills are about to change. You may hit the threshold for revenue, but still be struggling to make decent profits. You might be worrying: what if my sales dip and I can no longer afford my BigCommerce plan? Do plan changes only work one way? We asked BigCommerce and they told us merchants are not automatically downgraded.

Both BigCommerce and Shopify are ecommerce store builders. They specialize in helping merchants build stores not only websites. Along with BigCommerce, Wix and Shopify are our top-rated online store builders. Wix is an easy-to-use drag and drop builder that helps users launch online stores with their eCommerce plan. This costs both time and money.

Yes, Wix eCommerce is cheaper, but BigCommerce gives you specialist ecommerce features. If you want to build a long-term ecommerce store, BigCommerce is worth considering. Each website builder, of course, will offer a different experience. Some are cheaper but offer fewer features. Others are more expensive, but give you greater functionality. BigCommerce v Shopify Comparison Chart — see a breakdown of the key differences between the two leading ecommerce website builders. It tells visitors to your site who you are and what your website is about.

Wix will give you a domain name free for a year if you sign up to a Premium plan, like Wix eCommerce. You can get zero transaction fees with Shopify, but will need to be on Shopify Payments. This means you keep all your profits, which you can reinvest in marketing to grow your store even further.

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Website builders usually charge transaction fees to cover the cost of processing sales. More sales means more visitors and shoppers. More visitors and shoppers means your store needs more resources to maintain. Rather than charging you a percentage for each sale, BigCommerce will get you on a pricier plan.

Still, no transaction fees is an attractive option especially if you sell in high volume. Factor in any savings when working out which BigCommerce plan to sign up to. Make sure you have at least a rough idea of how many products you want to sell each month. Whenever a shopper places an order on your store using a credit or debit card, you will have to pay a fee.

This charge goes to the payment processor a bank, for example. The charge is for helping you collect the money from your customer and transfer it into your account. Think of it as the charge a courier company levies for moving your parcel from the warehouse to your front door. What you can control is how much you pay. You do this by choosing the payment processor you want to use. But merchants selling in modest volumes are unlikely to notice the difference.

Pricing Strategy for Ecommerce – Is Your Price Right?

Have you ever tried building your own store? Or have you tried picking up a new online skill?

You feel frustrated. You may even feel like giving up.

How to Sell Value vs. Price

Any help you can get can make a real difference. Good service saves you time. And the more time you have free, the more you can focus on marketing, which brings in customers, who bring in money.


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Think of it as like hiring business advisors and computer experts to work for your store. You might have a technical problem with your store. Or you might need some help promoting your store to find new customers. You can contact BigCommerce over the phone, LiveChat and email. Think about the level of support you need. Otherwise, a strategy to be the cost leader will beat a performance-based differentiation strategy. In an industry where new fixed assets or capacity additions are expensive, a company with relatively modern facilities and adequate capacity may well find it competitively advantageous to use a focus strategy and concentrate on selected groups of buyers.

A narrow customer base helps limit the need for capacity expansion and shields the company from the cost of escalating capital requirements. By narrowing the product line, the company can allocate expensive production capacity to its most attractive items and market segments.


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Such focus directs corporate attention to the best use of existing capacity and has a tight strategic fit with the economic need to enhance the revenue productivity of expensive capital assets. When rising costs hit the operating-cost side of the value chain harder than the capital side, a company can still be successful in pursuing a strategy of being the low-cost producer if it can find ways to innovate around the components of operating costs most susceptible to inflation.

It can also try to restructure the whole value chain by substituting its own distribution networks for dealers and franchises.

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Petroleum refining provides an interesting example of how to defend against long-term price increases in a key resource input. Since , U. The investment is expected to pay a good return through the use of lower-cost crude oil and improved refining technology to increase the yields of higher-margin products. The success of differentiation strategies in an environment of rapidly rising operating costs varies according to the basis for differentiation.

Less vulnerable are companies that 1 differentiate in parts of the value chain less affected by costs, 2 cater to price-insensitive buyers, or 3 enhance the value of their differentiation features enough to outrun the effects of higher unit costs. A differentiation strategy based on the intangibles of image, buyer confidence, and brand recognition has a stronger chance of being successful when the costs of creating or maintaining the intangibles are not greatly affected by the forces of rising operating costs.

The key is to find cost-competitive ways to preserve the value of differentiation for the buyer and to contain customer switching by offering lower prices. Another strategic option is to try to shift more of the basis for differentiation to aspects of product performance that can be added by investments in technology and fixed assets. Such a move may produce a durable competitive edge, especially if it catches competitors by surprise. When operating costs spiral upward faster than the costs of plant and equipment, a focus strategy can succeed if the company either concentrates on buyer groups that are less price sensitive or tries to build its product line around items that are least affected by cost changes.

While there is nothing inherently wrong in making a series of short-run pricing changes to cover chronically rising costs, the fatal mistake is to fail to recognize why and how strategy must deal with almost certainly uneven cost changes among rival companies. Though small at first, the cost disparities that emerge can over time create big shifts in cost competitiveness and competitive advantage.

Avoiding pricing traps requires a strategic view of the present cost structure, of how the structure changes, and of the implications for gaining a sustainable competitive advantage. Success comes to a company that accentuates long-term strategic positioning. In my judgment, the impact of inflation on balance sheets is considerably more serious than that on income statements. In the first place, inflation deprives people of the opportunity to save in a form that gives them a predictable command over future consumption goods.

In a noninflationary environment, people can acquire various liquid assets, earn a reasonable return on them, and count on them as the means to acquire a basket of consumer goods in the event of especially large needs or declines in income. To be sure, they can never get a guarantee of future tuition costs, or the prospective price tag on their retirement home, or charges for large medical needs.

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But these risks are much less serious than those associated with general inflation. When over-all prices are rising rapidly, their exact course is bound to be unpredictable. If we all knew that 4 per cent a year inflation would last through the next decade, nominal interest rates would probably become adjusted to levels offering a reasonable real return, and people would know how much of a consumer market basket their savings accounts could command in Only if the Government is committed to limit the rise to a creep of not much above 2 per cent can there be reasonable predictability.

The opportunity for safe saving is lost in a period of sizable and unpredictable price increases. Some assets offer a degree of protection against inflation in the sense that their values are likely to move up as consumer prices rise.