It’s that time of the year again: the climate gets colder and the need to renew the wardrobe is on most peoples’ minds, or maybe you are already thinking about the next Christmas gifts. The holiday sales season gives both shoppers and online sellers the opportunity of the year.
However, if you are a brand or a retailer this also means that it gets harder to stand out and own a big portion of the market share. In this article, you will learn how to sell more during this end-of-year sales thanks to price intelligence, the key to higher revenue for your business.
What is the holiday sales season?
The holiday sales season is the end sales period of the year, between Thanksgiving and Christmas, when many retailers and brands offer discounts on their products. This period is often known as a busy time for shoppers, as many people take advantage of the opportunity to buy items they want or need, also the dates of the holiday sales season can vary depending on the location and the time, but are often associated with major holidays like Black Friday and Christmas.
The importance remains on the challenges of the holiday sales season, as they can experience a high volume of orders. Along with this comes the availability of products that may not be sufficient to meet the customer demand and handle the increased workload.
As a consequence, companies selling online can face the challenge of dealing with potential shipping days delays due to high customer demand.
With millions of websites, social media accounts and online businesses are all competing for attention, with new technologies and trends emerging constantly. This means that you need to adapt and innovate in order to stay relevant and attract attention.
How can we define seasonal holiday pricing?
Seasonal pricing is a pricing strategy in which the prices of products are fixed based on the time of the year. This can be due to different periods of the year including holidays, changes in demand, and trends, for example, the price of airline tickets may be higher during the summer and Christmas period.
That’s why we have seen many companies changing their prices seasonally for years to compete with their rivals, to have a holiday seasonal pricing strategy on set well in advance.
So, what are the benefits of pricing seasonally?
Some of the potential benefits of pricing seasonally include the following:
- Increased sales: By offering special deals or discounts during sales season shopping periods, businesses can attract more customers and increase their sales.
- Higher profit margins: By adjusting prices to adapt to market changes in terms of demand, businesses can maximize their profit margins and ensure that they are making the most of their seasonal sales.
- Improve customer satisfaction: Seasonal pricing can help businesses gain a better brand image which improves customer satisfaction.
- Better inventory management: Businesses can better manage their inventory levels and avoid overstocking or running out of popular items.
- Competitive advantage: By offering seasonal pricing, businesses can differentiate themselves from their competitors and offer customers something that their competitors may not be able to match.
Speaking of the holiday sales season, did you know that on the 2022 Black Friday shoppers broke a record for mobile orders? 48% of online sales were made on smartphones, which accounts for an increase of 44% when compared with the previous year.
And when it comes to the day after Thanksgiving overall online sales were up 2.3% year over year, and electronics were a major contributor, with the most sold items including gaming consoles, drones, Apple MacBooks, Dyson products, and toys like Fortnite and many other products.
How can price intelligence help your business?
Price intelligence is a strategy that many retailers are using currently to gain insight in terms of strategic knowledge to adapt against their competitors, and to adapt their prices according to market changes.
By using price intelligence, you can stay competitive and ensure that your prices are more competitive than those of your competitors.
This can help you increase your sales and improve your customers’ experience. You can use various tools and solutions to improve your pricing strategies, such as monitoring competitors’ websites, conducting market research to understand consumer demand and pricing trends, and using a dynamic pricing solution to keep your profit margin safe.Overall, the use of price intelligence can be a valuable tool for your business to stay competitive in the market.
Use price intelligence to identify the market’s trends
For example, they may offer special discounts on popular items or pack products together to create value and a better experience for customers during the holiday sales season. Retailers can also use price intelligence to identify consumer trends and preferences and tailor their pricing strategy to meet the needs and demands of their target audience.
By gathering and analyzing this kind of information, you can gain insight into what products or services are in high demand, what consumers are looking for, and what their preferences and priorities are.
If you are looking to increase your profit during the holiday sales season, make sure to adopt the right pricing strategy for your business thanks to our price intelligence solutions.
Name of the Author: Abla Kabbaj