Online Shopping and Price Differentiation
Things were simple in the past; a customer would get a better price, one on one discussion, nothing to be afraid of cannibalizing your full price sales or destroying your brand! Piece of cake.
What about today- on the online shopping world? We see several price differentiation schemes, for loyal customers or “early birds”. Airlines adopted the scheme, and you may fly, having paid peanuts – or even free after an exchange of air miles -sitting side by side with the guy who paid a full fare. Same service- different price.
Several retailers, offer free shipment to loyal customers, see Amazon’s “prime” club
Is that all we get from the online shopping in regards with pricing? The loyalty reward? What if shop owners want to make some fast cash and turn in to money some of the items they have on their shelves?
Yes, probably they will turn to their loyal customers and make an offer, but we are talking for “fast cash” here. We are talking that “I need to get some cash and pay my bank loan instalment by day after tomorrow”
Shop owner has in mind to make a good offer on some items, today, to collect the cash needed, but, to set a discount sign of let’s say 40% isn’t the best thing to do, as everybody who will walk in his virtual shop, will get the discount! Even if the shopper had in mind to pay the full price! Shop owner just lost 40% from this customer, ouch, this hurts!
How would I differentiate my pricing without destroying my brand and without cannibalizing my full price sales on my online store?
It seems a question without answer, however this is not true. There is a way, and this is www.galoo.com which is a safe & secure channel for sellers to move their unsold inventory, fill empty time slots and raise occupancy, in a way that does not destroy their brand or cannibalize full price sales allowing for differential pricing. It’s the opposite of translucent discounting. Too good to be true? Well try it.