If you are involved in a business that sells luxury handbags in an online store, you probably are aware that setting a clear pricing system is of essential importance for you and the benefit of your customers. Therefore, quality labels and tags must be part of your inventory so that you can provide all the important information to your customers in a clean, organized and descriptive way.
By using shelf labels and tags you provide the customer with an opportunity to consider buying the product by deciding whether the price suits them or not. Research shows that if a customer is able to clearly see the price of a product, they will be more likely to buy it. So that is one obvious reason that you should use tags and labels in your business.
Here are 5 reasons why you should add price tags to luxury handbags on your online store.
Having a clear and transparent pricing structure, can help your business to take into account external costs such as building overheads, wholesale price of the item, energy costs, this then allows you to set clear profit margins. Whether an item is full price or in the sale, bold and eye-catching pricing using tags and labels, is a must for any business that sells a product.
Many retailers have different pricing structures on their stores. If you need a great example of what transparent and clear pricing looks like, take a look at that of The Webster. As a business if your display a tag with a price on your online store, you’re showing your customers what price they need to pay for that particular handbag.
The Competitive Price Effect
If customers can see your price you’re charging for an item, but your competitor doesn’t display the price or the price they show is more expensive then the customer is more likely to purchase it from you. In a changing market place and competitive marketplace, it’s important to stay ahead of the competition, whether this be from a business down the road or an online retailer, staying competitively priced is important for any business to succeed.
Online Vs. Instore Pricing
Everyone has a smartphone at hand, and prices can quickly be checked to see how competitive you are. However, instore pricing always has the upper hand over online shopping, if customers see something they want and it’s a competitive price then they’re more likely to purchase it there and then, than wait to order online.
Even being more expensive than an online competitor isn’t a challenge, as when customers shop online, they’ll need to pay postage and possibly transaction fees. When competing with online pricing, it’s important that the price of the items, reflects the true value of your item, whilst still ensuring your business makes a profit and your overheads are covered.
Value for Money
All customers see value for money in different ways. Although portraying value for money can be difficult, as long as you’re charging a fair price, then your customers are likely to purchase it. However, using clear price labels and tags, can also help to entice potential customers. Tags that display words such as sale or offer, are more likely to purchase the item as they think they’re getting a deal.
Spending Patterns Have Changed
Spending patterns have changed drastically over the past decade; the majority of shopping was smaller or cheaper items. Today people want good value for money whilst receiving a high-quality product. At the same time these products need to be priced in a way that’s attractive and encourages the consumer to make a purchase.