A seasonal pricing strategy will help you minimise loss of cash flow in low periods and maximise profitability in peak seasons.
Changing your pricing will help you capitalise on your target market’s spending habits. Remember that creating a supporting marketing campaign to bring awareness to your price change or seasonal deals will be critical in meeting your business objectives. Consider the following steps to get the most out of your seasonal pricing strategy.
Previous buying patterns should influence campaigns so you can tailor your pricing to the needs of your target market. Segment your market and develop pricing strategies to maximise customer engagement.
Your pricing strategy should accommodate fluctuations in customer demand. Break your year into low, mid and peak seasons. Offering an off-peak discount may boost your profits by incentivising your customers. Increasing your premiums in peak season will help you capitalise on high customer demand. Experiment with pricing so that your discount does not encourage customers to wait until your peak period is over, and so your premiums do not drive away customers looking for better value. Look to the market to help you strike the right balance to maximise the benefits of seasonal pricing.
The customer influx in Christmas and the New Year is an opportunity for you to tap into the spending season with your pricing strategies. Advertising seasonal deals well in advance are essential to reaping the benefits from your price change and gaining an edge over your competitors. Offer incentives like a gift-wrapping service, loyalty credits or special deals on your most popular products. In post-Christmas sales, look to your competitors to see how far you should discount your prices to capture the largest target market while keeping your profit margins high.
Seasonal pricing strategies and their accompanying marketing campaigns can be costly.
Reuse past marketing campaigns that were successful. Recycle them only if they are still relevant or need a few minor amendments. Assessment of pricing strategies should be ongoing to ensure your business is up to date with your customers’ spending habits.