How to price products in Pinduoduo

In the world of e-commerce, product pricing is not only an art, but also a science. This article explores in depth how to achieve the goal of explosive sales through precise product pricing strategies on the Pinduoduo platform.

When we do Pinduoduo, we are most concerned about how to run a through train and how to report an event. It seems that if you can master the through train and events, you can get a lot of orders on Pinduoduo. In fact, it is true. For Pinduoduo operators who know how to run a through train or how to run an event, it is very easy to get a lot of orders.

However, we only see the side where others can easily get a lot of orders, but we fail to see the preliminary preparations they make in order to get a lot of orders.

Among all the preparatory work, the most critical factor that determines whether the product can be sold in the later stage is the product pricing. As the saying goes, product selection determines life or death. However, if you choose a product that can be sold, but the price is not set right, sorry, I will still give you shit! Good products must be matched with good pricing. Of course, if a junk product encounters a good price, it may also be able to survive.

Some e-commerce operators may ask, isn't pricing simple? Just add a few dollars to the cost price and promote it. If it is that simple, then it seems easy to make money. The reality is that pricing is a science. If you set it too high, there will be no orders. If you set it too low, there will be no profit. Only the right pricing can make everyone have both orders and profits.

01 Pricing idea 1: Pricing determines the gameplay

What are the ways to play on Pinduoduo? The mainstream ways to play are nothing more than high-price forced payment, low-price natural order, and medium-price micro-payment. Each e-commerce operator has its own specialty, for example, some e-commerce operators are very good at platform activities.

For operators who are good at activities, your pricing must not be too high, because high prices cannot play activities. Similarly, if you are a master of strong payment, you cannot sell at cost price, otherwise, there will be no place for you.

So, when we get a product, how to price it is determined by the gameplay we are good at. For example, I got a batch of shampoo now, and the cost is 18 yuan per bottle.

I'm going to start pricing, so how much should I set? Actually, it's up to you. I can set the price at 38 and then take out 15 yuan to drive the car. Or I can set the price at 22 and start with a high investment-output ratio.

You see, the same cost of the product can be priced at 38 or 22. There is nothing wrong with pricing high or low. If you can do some tricks, you can price it at 388 yuan a bottle. I used to make shampoo with a cost of 38 yuan, but others sold it at 58 yuan, but they couldn't sell it as well as the one I priced at 98 yuan. They were just playing tricks.

02 Pricing idea 2: Pricing should refer to the market

In addition to combining your own gameplay, you also need to look at the market. If you want to reach the largest group of people, set the price according to the average market price. If you want to make a high profit, just set it according to the selling price of Taobao or JD.

Let's take the shampoo with a cost of 18 yuan as an example. Before we set the price, we need to see the order volume and price range of this product in the market. For example, the highest-selling link has a daily sales of 500 orders and a selling price of 19 yuan.

We know that this must be the manufacturer. His cost may be lower than 18 yuan. Due to the low selling price, he adopts the strategy of low gross profit and high volume to make money.

We have to think about whether we should follow suit. If we do, the price will be 19, and the profit will be 1 yuan per order. If one order is refunded, we need to sell 19 orders to make the profit back. According to the 1% refund rate, setting a low price is not a wise choice.

Therefore, we give up the low price and turn to the high price market. We look at the links with good performance in the price range of 20-30 yuan, how many orders can be obtained in a day, and those above 30 yuan.

After analysis, the links between 20 and 30 can get about 100 orders a day if they are doing well. Then we can cut into this price range, set the price at 28, make the materials more beautiful, and control the fare of one order to 4-5 yuan, which is much more profitable than setting the price at 19. Therefore, it is also crucial to refer to the market when setting the price of your product.

03 Pricing idea three: Pricing depends on cost

There are several roles in Pinduoduo, including manufacturers, brands, and agents. For the same product, the costs of different roles are different, which leads to different pricing spaces. First, manufacturers can play low or high prices, and they can move freely.

If the brand has strict price control, the e-commerce operation cannot independently decide the selling price of the product, because the selling price of the product is written in the price control list. All you have to do is sell the product according to the price in the price control list after it is put on the shelf. Of course, if you sell it at a price higher than the controlled price, no one will stop you.

If you are an agent or a drop shipper, your cost will be the selling price of other people's group sales of 10,000 people, and your only option is to set a high price.

I used to be an agent. After getting the product, I didn't need to analyze the market or see what I was good at. I just wrote the cost of the product into EXCEL. I had a price increase formula, and calculated how much I would sell it for based on a 30% premium. Then I took out 15 points of it to force payment. It really fits the saying: pricing is in the table, and link creation is up to heaven.

Whether the link can be established depends on luck. Although my price is higher than others, there are still people who buy it. I have a facial mask. Others sell it for 59 yuan per box, but I sell it for 129 yuan per box. I can sell more than ten or twenty orders a day. Although our order volume is not as much as the low-priced ones, the profit is comparable.

Therefore, when we set prices, we must also consider our own actual situation. What role you play and how much your costs are also determine your pricing.

04 Pricing idea 4: Pricing depends on your demands

E-commerce is really changing rapidly, and there is no one-size-fits-all trick. Take pricing for example, there is no fixed routine or formula. You say I am an agent and have no cost advantage. Do I have to charge a high price when I create a link? Not necessarily. It depends on our demands at the time.

It’s still the shampoo that costs 18 yuan. It’s a new product launched by the brand. Its main functions are popular functions in the market, such as hyaluronic acid shampoo, which makes hair as silky as baby hair (I made that up).

When we got this product, we judged it to be a potential hit product, and not many people were trying to sell it in the market. Even if our purchase price was very high, maybe 22 yuan, how much should we set? Generally speaking, the price would not be lower than 30, and then we would force payment.

But this is a potential hit product, why are you still hesitating? Just sell it at cost price, grab the crowd first. So the price is set at cost price, because there are few people doing it, I set the price at 22 yuan, and offer a high investment-output ratio. As long as the materials are not outdated, the product's appeal really meets the needs of buyers. Then everyone can rest assured, this link will definitely explode.

When your link goes viral, you can gradually increase the price to improve your profits. This pricing idea is completely different from the one mentioned above. This is the pricing based on our demands.

If you want to increase the volume quickly, then setting a low price is the best choice. If you are not in a hurry, then slowly increase the volume and make money steadily. You can also set a high price and make more links to play slowly. Anyway, whether the price is high or low, there is no right or wrong, as long as it meets your current needs, it is right.

05 Last

The final result of product pricing is nothing more than a number, but what is this number? The thinking process is the most valuable. If the pricing is reasonable and the strategy is not biased, the links you make will be able to increase the volume.

If the pricing is completely inconsistent with what you want to do, then no matter whether you set the price high or low, you will not get the results you want.