Q4 Updates: Perfecting your eCommerce Pricing Strategy with Burc Tanir, the eCommerce Pricing Guy (episode 112)
by April Buencamino-dyBurc Tanir is the CEO of Prisync, the competitor price tracking & dynamic pricing software. A.k.a The eCommerce Pricing guy! Burc Tanir and his company help 100s of eCommerce companies improve their profits with bulletproof pricing strategies that can be applied by any eCommerce company regardless of its size.
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Getting Into eCommerce
Burc says he ended up in eCommerce because of the network of friends he has.
At the time his friends were putting up their eCommerce shops or getting employed by retailers. Burc noticed most of them complained about competition, particularly in pricing. He also discovered they were wasting most of their time doing manual price checks.
After this observation, Burc set up his company Prisync, to automate the pricing bit of the eCommerce process.
A Focus on Pricing
People in eCommerce often get lost in the marketing world before putting focus on what they perceive to be boring aspects like pricing.
However, pricing carries a lot of importance and opportunities so make sure not to neglect it.
Increasing Your Prices
Burc says that pricing strategies today should be based on extensive research and not purely reactions to the inflationary environment we are currently in.
Increasing prices is one way, and managing prices dynamically can even bring you increased profit margins, as indicated in the eCommerce Fuel report.
You can’t just set your price and forget about it. It makes sense to perform price increases, and this is what Burc encourages his merchants to do, even prior to the market’s current situation.
The Benefits of Pricing Automation
Algorithms can swing your prices both ways. You will not be forced to increase your prices all the time, and price decreases can happen.
Automation can help you keep optimising, and with it, you’re letting the algorithm adjust your prices to maximize whatever your goal is.
Dynamic Pricing
Businesses who are going for dynamic pricing may be doing to achieve any of the following:
- Improve profit margins
- Increase market share
- Increase gross merchandise billing
Burc emphasizes that merchants shouldn’t treat each product SKU the same way when it comes to pricing. Identify different product characteristics before applying a dynamic pricing strategy.
Even if you’re selling your own product, optimise your pricing by looking at internal data and demand signals.
Insider Tips
Newbie advice: If we’ve inspired someone to take their first step – what do they need to know to give themselves the best chance of success?
Always think with the key aspect of automation in mind.
In terms of pricing, enable an automated competitor price monitoring system that can help you set your prices based on your competitors and in line with a predefined pricing strategy.
Once you’ve started of course you’ve got to ‘keep optimising’! What’s your favourite way to improve performance?
Burc says any optimisation should be tied to a goal, whether it’s maximizing revenue, market share, or profit margin.
Whatever it is you automate, monitor your performance towards that goal. In pricing, follow your overall performance towards any optimisation problem you’re trying to solve.
If someone listening wants to learn more about this is there one cheap/free resource you’d recommend?
For Q4, Shopify always comes out with preparation content each year covering Black Friday and Cyber Monday. This is a free source that covers various areas of eCommerce so make sure you get that.
For pricing, Burc recommends Prisync’s YouTube channel which has a comprehensive training and tied to a free certification program.
Crystal ball time – what’s coming up in the next 6-12 months that we should be getting ready for?
There will be more unpredictability, and while planning makes sense, Burc says agile players can easily outperform great planners.
Monitor market data and trends, and be aware of what’s happening in the market on a daily basis.
Interview Links
- Visit Prisync’s website
- Read more about pricing in 2022
Burc on Social media:
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