Opt Out of the Pricing Rut – and Let CONTENT Drive Margins

Mihir Kittur, Co-founder and Chief Innovation Officer, Ugam,

Opt Out of the Pricing Rut – and Let CONTENT Drive MarginsIt’s so easy for retailers to get caught in the pricing revolving door. It’s not unnatural to think that if you lower your prices to beat your competitors, you’ll win the sale every time, but that doesn’t always do the trick, and it winds up being a short term strategy, instead of a long term one.

Good marketing sells products, and that means, how you price your product is less important than how you describe it, how it’s displayed in a photograph, and how you optimize your SEO program.

Simply giving your product merchandising a makeover can be just the trick to driving higher margins for your product.

Below is a good example of this - the sales for this product had nothing to do with price. Retailer 1 generated better sales—but why? In simply looking at the images, retailer 1 invested in making sure the customer could visualize how they would use this product, whereas retailer 2 chose a simple white background to photograph the product. Additionally, with over 130 reviews on this product, retailer 1 is not only able to gain credibility with customers, they are also optimizing for search so that their product is showing up on page 1 in Google searches. Retailer 2 is showing up on page 3 so there is more work that needs to be done there to improve search results.

Retailer 1
  • Price: $649.95
  • Reviews: 130+
  • Google Rank: Page 1
  • Sales: Among the top-selling
    products for the entire retail chain
Retailer 2
  • Price: $649.95
  • Reviews: 0
  • Google Rank: Page 3
  • Sales: Not even close to the
More on the Importance of Reviews
Once your product is well displayed, encouraging people to write reviews about this product after they have received it will only help to increase sales. People may not think to write reviews of a product they just bought. But if you help to encourage them to write reviews, you could be impacting more than just your reputation. For example, sending your customers a friendly e-mail a week after they receive their product encouraging them to provide you with their feedback in the form of reviews can help to increase sales. If the reviews are positive, new customers will be more likely to purchase the product.  If the reviews are negative, it will allow you to make adjustments and improve the customer experience and better sell your product.

Like the show on A&E called “Sell this House” where a crew of experts go to a house that is not selling on the market and make it over at very little cost, don’t assume price is the problem. Take a look at how the product is being marketed. Ask yourself, could this product be better displayed? Are there any reviews? How are we doing on SEO? Is this product coming up on page one in Google searches? What things can be done to improve that?

Here at Ugam, we have the tools and technologies to help you identify your content problem areas and to provide solutions that will improve your sales growth. For more information, listen to our recent speaking opportunity at IRCE and learn how content analytics can improve the marketability of products without decreasing margins.

The Author:
Mihir Kittur is a Co-founder and Chief Innovation Officer at Ugam. He oversees sales, marketing and innovation and works with leading retailers and brands with insights and analytics solutions around their category decisions to improve business performance.


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