If you want to build a successful, profitable business, especially in the cannabis industry, then one of the main things you’ll have to figure out right away is your pricing strategy.
An effective pricing strategy for your business will mean a boost in sales, and an increase in your loyal customer base.
That’s why in this article we’d like to focus on price as a competitive advantage for all canna businesses and give all dispensary and smoke shop owners & managers the necessary tools to build a growing business and a loyal customer base.
Different Pricing Strategies for a Competitive Advantage
No matter what industry you’re in, chances are you’re going to have a lot of competition. If you have no way to stand out, give your customers something different or something they can remember you by, then the key thing they’ll remember you by is your prices.
Price is an important factor to most consumers, and it’s something we always take into account when shopping or buying all types of goods. That’s why if you want to boost your sales and stand out in the crowd, you’ll need to have a well thought out, smart and flexible pricing strategy.
Here are a few tips and techniques that you can use to separate yourself in a price competitive market and turn your pricing strategy into a competitive advantage:
Bundling up Products
Product bundling is when you offer a group of products together for one single discounted price. This gives the customers a perception that they are getting a great deal by buying more products for a discounted price, and that they are in turn saving money, which is exactly why the majority will go for a bundle, instead of buying those products separately.
Psychology pricing is a technique used by marketers to encourage customers to respond to the product on an emotional level rather than a logical one.
You’ve probably noticed the use of this technique in many businesses and might have even been “fooled” into buying a product or two yourself, thanks to psychology pricing.
Here’s how the technique works. For example, by setting the price of a product at $199, you attract more consumers than by setting it at $200. Although the price difference is actually a dollar, in the consumer’s eyes, it seems like the second price is much higher.
Reach out to your existing customers to promote new products you think they might be interested in. Don’t just wait for them to eventually see your new products on your website or on your shelves. If you know your customer base, you should know their needs as well. Introduce a product they won’t be able to say no to, at a discounted or affordable price to insure repeat business and an increase in sales.
Discounts, Coupons, and Price Promotions
This is a time proof tactic that has been proven effective many times, in all sorts of industries and businesses.
Since it’s worked well for so many businesses over and over again, why not make it work for you?
Another guaranteed way to attract more customers is to offer free monthly giveaways. This is a great strategy, which will not only help bring you in new customers, but will also help boost your sales as well.
These are some of the most effective price strategy techniques that can take any smoke shop to the next level.
Remember that the best thing that you can do for your business is to base your price strategies on your customer base, and try to always have a healthy balance of offers for newcomers and loyal customers as well. If you forget your loyal customer base, you are creating a recipe for an unavoidable disaster down the road, so make sure to take care of your loyal customers as well as focus on attracting new ones.