Taobao agent operation: 4 steps to easily solve the product pricing problem

Today we will talk about how to price products more reasonably according to data.

I found that many sellers are very casual about pricing, such as pricing by 2.5 times of the cost price, such as setting the price 10 yuan lower or 10 yuan higher than the competitors!
I used to do data consulting for a store. The search flow of the store has been at a bottleneck, and the transformation is not good. The store products have always adhered to the price band of 200-250. However, we found through data that 70% of the incoming visitors are below the 150 yuan consumption level, and the largest sales price band in this market is in the 50-100 range.
But you should pay attention. This does not mean that the store has to pay 50-100 yuan. Through a systematic analysis of the market price distribution, we found that the market demand group of 100-150 yuan is also very large. So the store has arranged the price for the products to fill the price band of 100-150, and finally doubled the store traffic!

This is a case where reasonable pricing caters to the demand group of the market.
Since pricing is so important, how can we reasonably price?
Now, let me share the above four steps to solve the above case problem.

01: Determine the reference price line of the whole market!

For each type of product, consumers have a psychological price, which often depends on the information they receive. For example, how much is a mobile phone worth? For other mobile phones except Apple, the basic reference price in consumers' minds is mostly 1000-2000 yuan. When consumers choose other mobile phones, they will psychological hint that the mobile phone is worth 1000-2000 yuan. If you set the price of 3000 yuan, then consumers will think about where the higher value of 1000 yuan is reflected?

Therefore, we need to search for category words first - and then extract the top 500 price sales according to the sales ranking. We have a sorted sales data sheet of different price segments in the text. From the table data, we can see that the market reference price of this category is within the price band of 0-150 yuan and 200-250 yuan. Among them, 200-250 yuan is the price belt that the store is already making, so we can only consider the range of 0-150.

02: Determine the flow distribution of different price segments


At present, traffic is mainly allocated through crowd tags, which are divided based on the behavior process and consumption capacity of the crowd. Therefore, we need to determine how much traffic is allocated in different price segments through data analysis.
Through the competitive intelligence of the business staff, we sorted out the source structure of the product traffic for the top 500 sales. The table data of the text type shows that the 100-150 price range has the largest traffic in the manual search distribution.
According to the market reference line we analyzed in the first step, 100-150 is just on the market price reference line. Then this price belt is a better choice, and the choice of this price finally doubled the store traffic!

03: Space for price profit

The specific price determination depends on our cost and the remaining profit space. For example, the price band of 100-150 yuan determined above, but if the cost in all aspects is higher than this, then the price will not be tenable. After all, all business activities that are not for profit are hooligans! The cost accounting mainly considers the product cost, platform cost, package cost, promotion cost and labor cost.

04: Positioning of 3, 5 and 10 in the price band

When we determine the main price segment of the store, such as the 100-150 price segment above, we can fill the price segment of the store based on 3, 5, and 10 times. That is, 3/5 times of the lowest price and 10/5 times of the highest price, that is, 100 * 3/5=60150 * 2=300. The price band is 60-300, and the 100-150 price range products account for 80%.


Well, the above is the four step method I will teach you today to formulate the price belt of store products. Let's summarize it:
Step 1: Determine the psychological reference line of market price
Step 2: Master the flow distribution of different price groups and select the price band
Step 3: This price includes profit space after deducting costs
Step 4: expand the price band according to 3, 5 and 10