Popular online shopping sites like Nordstrom, Best Buy, and other retailers give their store managers the power to share deals on prices. In addition, other retailers like Staples, Toys R Us, and Target offer price matching policies on their merchandise. Clearly, this is quite a heavily promotional environment.
And with the increasing price comparison tools available online, everyone is trying everything in their power to introduce better deals. Thanks to the online marketplaces, everything is relatively easier with so many discount coupons available now!
But if you ask anyone in your friends or family, the answer would be the same. “I hate paying full price for anything.” Surprisingly, not every buyer likes to collect coupons. Instead, they prefer to negotiate their way to a bargain.
However, you’ll always think about in-person options whenever you consider negotiations. For instance, it’s usual practice when you go to a store to buy a car, home, or new dress. But the online marketplace is also looking to introduce a similar concept.
Here we are talking about the “name your price business model.” Again, stores like Buyr pave the path for this new kind of eCommerce negotiation.
Why is there so much noise around this not-so-old trading strategy? Keep reading, and you’ll find out!
Negotiation Works: It is the Oldest Trick in the Trade for a Reason.
People are always looking for the human element when purchasing anything online in this digital era. However, the “Buy now” business model used mainly by top online shopping websites is more like customer-technology integration. This is why you will find customers switching to different online marketplaces if ever given a chance.
However, by introducing a negotiation model into pricing, the sellers will initiate a dialogue between the buyer and the seller. As a result, not only will the buyer and seller find ways to reach an agreeable price, but the buyer will also establish a level of trust about the product and the seller.
It will create a win-win dynamic between the buyers and the sellers. But just by saying it is beneficial for both doesn’t make it an attractive option, isn’t it?
So, What is a Negotiation Pricing Strategy?
Imagine this. There is a typical day where you surf online for items on your buying bucket list. They are available at a specific price. You study and compare prices at the best online shopping websites, and then you click “Buy Now.” But what if you could negotiate the price?
Name your own price is a unique pricing strategy that lets customers pay the price they want. But the offer is accepted if the retailer approves it. Here’s how it happens!
Sellers list the products and provide the customers with their threshold prices.
If the customer is keen on buying an item, they will place an initial offer.
The transaction happens if the seller approves the price based on their set threshold price.
It is more like a reverse auction. This is how companies like Buyr are slowly and steadily introducing this traditional yet novel concept into the online marketplace.
How is it Mutually Beneficial for Customers and Retailers?
Many top online shopping sites like Buyr, Garmentory, Nyopoly, and OnlyAtoms approach this price negotiation model from different angles. Simply speaking, letting your customers have some bargaining power helps online retailers in the following ways:
Helps you earn customer trust: Earning customer trust is quite challenging nowadays. And with extreme competition, it becomes even more challenging to reach the customers in the first place. But if you make them at the center of your pricing strategy, you will eventually build a strong foundation.
Improves customer loyalty: If you provide impeccable customer service, efficient product delivery, earning customer loyalty is easy. But if you add an option where customers feel privileged and get tailor-made discounts, you will also get a chance to win their hearts. And when the customer is happy, it will retain customers, which takes quite an effort.
Bridges the gap between seller and buyer: Why do customers switch to other vendors? It’s because of the lack of communication. However, with a bargaining model, you are opening a customer negotiation and communication channel simultaneously.
Helps create an intelligent pricing strategy: If you want to make a decent profit margin, you need to develop a pricing strategy. Of course, you can start by pricing the same as your competitors. But once you get a range of offerings, you can understand the best deal to attract your customers without losing your profits in the process.
But that’s not all!
At the same time, it allows customers in the following ways:
Better deals: People love discounts. This is why coupons and spin wheel games are so much popular in the online retail space. However, with negotiation, the buyer gets a chance to get access to a price range rather than a fixed price.
Psychological relief: With the pandemic impacting the world economy, it is pretty prominent that people are focusing on saving more than ever. With this pricing model, customers get a psychological relief that there won’t be any overspending.
Saves time: With so many options available nowadays, it becomes pretty unnerving to check every site. However, a customer doesn’t have to switch to different sites with price bargaining options. All they have to do is bid the price, wait for the approval, and get the deal done. It’s a cost-effective and time-saving approach.
Using the same approach, Buyr.com is helping their customers find the best deals and create an environment that’s buyer-seller friendly.
People love to negotiate. And if you give that power to your customer, they will be interested in doing so. This negotiation-based pricing strategy allows the buyer to save more while allowing sellers to sell more.
The resurgence of this old trick in the modern online marketplace is trending now. So, it’s time that customers start looking for such sites rather than be stuck with the earlier online shopping concepts.
Image Credit: Karolina Grabowska; Pexels; Thank you!