Pricing on Danagi: Strengthen your market position

B2B marketplace: The right price strategy may increases your market position

Optimizing your own prices is a complex undertaking for retail companies that every company has to struggle with. There are innumerable factors that go into pricing. In addition to knowing the procurement costs, your own costs, goals as well as turnover and sales figures, you should always closely monitor and analyze your market. While you can negotiate with your customers outside of the platform, your potential customer makes the decision here based on the numbers, data and facts that you provide on the Danagi platform.

The pricing strategy

You have to choose your internal pricing strategy according to your wishes. You have the choice between: Low price strategy: The goal is to pursue the expansion of market share and to aim for a volume effect. The more products you sell and the higher your market share, the higher your profit. Successful examples of the low-price strategy can be found under everyday products and discount goods.
High price strategy: Here you sell fewer units at a higher unit price. Examples of this are diamonds, because natural diamonds are only found in a few regions of the world that have very specific rock formations. This also includes high-quality branded products and innovative technology goods.

RRP

An RRP (= recommended retail price) must have been determined as a reasonable consumer price on the basis of a serious market calculation by the manufacturer. In addition to this and a large number of other researches, your potential customer determines whether the purchase of your goods is lucrative for them. The profit margin plays the decisive role for your customers, because they also have costs that have to be covered!

Graduated prices & volume discounts

Danagi is a B2B marketplace where you have the option of displaying your prices as graduated prices. The associated volume discounts have found their place in the B2B industry over the years. The graduated price strategy aims at a volume effect and should not be neglected. Use the power of large quantities for yourself by defining an attractive price policy!

Discount deduction

A discount of 2 to 3 percent is usually guaranteed, provided that the buyer pays within a previously defined period. On Danagi - depending on the payment method you have chosen - the money goes straight to your account without you having to wait for it. Calculate your prices minus the discount, because the general rule is: If you pay immediately, you should be rewarded with a lower price!

The waterfall shape

With the waterfall shape you can see the basic price development. The net price is your product including your own costs such as rent, wages, etc., while the sales list price represents the RRP.

An unsystematic and unyielding pricing strategy can reduce returns and result in a large difference between your desired and actual price.

Author

Agnieszka Fudala
Danagi GmbH
CEO
a.fudala@danagi.com
+49 (0)6074 80 33 592
https://danagi.com
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