“I have this friggin thing priced at only $5.99 and it’s STILL not selling! What do these buyers expect?! Am I supposed to do, GIVE IT AWAY FOR FREE?!?”
If you have found yourself in this position, YOU ARE NOT ALONE! So today we are going to look at why UNDER PRICING could truly be the reason you're losing out on sales!
Let’s start by showing you two listings for the same item:
Looking at the image above, which hoodie would you rather buy? As a SELLER you may jump at the $2 hoodie, but as a BUYER you will likely have serious doubts. Let’s discuss it:
Even though these are both the exact same hoodie, the listing on the left is a great "real deal". The full retail for this item is $60 and this hoodie is under $40; that's $20 savings! We assume this hoodie is authentic because $20 off is *reasonable* savings. In fact, if you go to Foot Locker or the NIKE store you probably have seen $60 items for $40 on occasion, so this makes sense.
The second listing appears to offer the identical item but the price is only $2. You and I both know that NIKE does not have a single thing in the NIKE store for $2. You can’t even buy shoelaces there for under $8! So that automatically makes you think:
- There MUST be something wrong with it
- Or it MUST be counterfeit
- Regardless, there’s something weird about this listing! I can’t even get a USED Nike hoodie for $2 at the Thrift Store!
- Too Cheap = Junk!
- I see it is only $2. I bet the shipping cost is $50! Waste of time!
- I bet it ships from China, is going to take 5 months to get here and the logo will be printed upside down.
EITHER WAY....HARD. PASS.
But reality is, the $2 hoodie in the 2nd photo could actually be a new seller who got this NIKE hoodie for Christmas even though he wears a size XXL his grandma always buys him a size Small. On the other hand, it could be a complete and total scam; we don’t know, but all we DO know is that $2 is way too low of a price to APPEAR to be a legitimate item even though it could be 100% for real.
Now let’s try raising the price on this hoodie and let’s have a second look:
Now that the price is raised, this listing no longer seems “too good to be true”. BUT, there are still differences between the listings:
The second seller (on the right) doesn’t have 19 different variations of the hoodie available - which is fine because he is offering a super competitive price. Most people would likely be happy picking from the 9 available colors if it means they can save money. BUT, the seller on the right also has a poor title in his listing, so let’s fix the title:
And lastly, we are going to adjust the photo contrast just a tad. The image on the LEFT is the original image. The image on the RIGHT is with 3 contrast adjustments:
As you can see, this hoodie now looks true-black and the logo stands out. Now lets take a look at the revised listing verse the competitor listing with just these minor changes + an increased price:
And now we end up with a pretty darn nice listing that is competitively price, looks legitimate and is sure to attract buyers who aren’t feeling skeptical! In fact, the darkened contrast on the right image almost makes the hoodie on the left look faded *wink*
...And it wasn't barely any additional work from the original listing, yet the seller will be getting over $35 more each time it sells!
So if your items are priced dirt cheap and not moving, try to redo your listings, titles, PRICES and photos. The results may really surprise you!
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