Without constant selling price optimization, store owners are tempted to discount everything to create urgency to purchase. Without a data-driven plan for price optimization, it is a race to the bottom, which damages your brand identity & your profits.
So what do you do? You let Leaflet find the pricing “sweet spot” that will maximize store profits and increase sales.
When you install Leaflet, you'll be able to:
Leaflet makes it easy to understand the impact of your pricing
And here’s the cool part
You DON’T need a large volume or
variety of historical data to get started
You can get set up and running in 15 minutes
Stores have increased top-line revenue by 20% using Leaflet.
Leaflet runs machine learning algorithms to determine how much to charge for each product, considering variables like purchase history and profit margin, and then figures out the hard math, giving you control of your pricing and its optimization. To learn how exactly Leaflet accomplishes this, see How It Works.
Price setting without analysis, planning and constant adjustment is a recipe for disaster
Pricing and profit margins are complex metrics in e-commerce that are influenced by a number of factors. For instance, say you sell shoes online. You see that your competitor has knocked down the price on their best-selling pair of shoes (although it is not guaranteed that said competitor is actually profiting from that new price).
In response, you match their price, lowering your list price by 20%. Sales increase and you think, "Great! I've sold more shoes and I'm making tons of profit!"
Because product pricing is complex and ever changing
Sales may have increased due to substitution - customers were actually looking for Brand A shoes but instead chose Brand B because of the pricing.
Did lowering the selling price on your shoes keep you profitable? Or is it now a loss leader - pulling in new customers but at the cost of profits?
Did lowering the price on your shoes encourage customers to add additional items to their cart? If your store's Average Order Value (AOV) increased, you won.
Or perhaps sales did not take off on your shoes to the point where lowering the price actually created enough sales to make it profitable. In which case, you just eliminated a profit center for your store.
You can spend all day doing sales analysis, OR you can install Leaflet and let its AI expedite that analysis to ultimately determine which prices are best to set for maximum store profitability.