Seasonal Pricing for Online Marketplace

Seasonal Pricing for Marketplace

INTRODUCTION Any online marketplace is successful if it maintains an upward trajectory growth, by generating suitable revenues and gaining profits. There are various effective pricing strategies one can avail by the Host/Providers to generate revenue. One such strategy is seasonal pricing, changing the pricing of the rental service depending upon various factors.

About Seasonal Pricing â—? It means setting different prices for a product or a service depending upon high-season and low-season.

â—? This supports in keeping up the charm of the marketplace revenue when it is off-season and builds the capital.

How does it help in terms of revenue?

01

Increases the booking

● During the off-season, it is a known fact that booking happens at a low rate. ● At this time, cutting the price would increase the booking stabilizing the marketplace revenue.

● Car rental business runs low and but still be in operation during low-season. ● The survival measure is usually done by cutting the prices to get the attention of office-goers and someone travelling out of town.

02

Maximise the proďŹ ts

● Profits define the success of the marketplace. ● During high-season you can earn better by keeping a suitable price with respect to demand, compensating profits from low-season.

● Summer or spring is the time the demand raise for hiring cars and vacation home. ● Owners grab this opportunity to price higher, thus gaining profit.

03

Boosts the offers

Huge demands can make more profits if strategically priced by introducing offers and discount.

Offering discount pricing of your rental service to a specific segment of people earns a loyal audience and increases the gross margin

04

Stabilizes supply and demand

● Sometimes a marketplace wouldn’t have enough supply on hand to accept the request of the customer.

● At these times, the pricing is done high accordingly to attract a specific segment of customers who are just enough to run the marketplace.

05

Keeps up with the market and competition

Based on the current market conditions and competitors pricing, implement your pricing strategy to stay ahead of the game.

Consumers compare the pricing of other marketplaces before making the final call.

Make a decision which always makes to stay at the top of the game, which increases the marketplace brand value, customer base and builds trust among customers, thus keeping the revenue stable.

Here’s the upshot Seasonal pricing strategy can benefit the Providers/Host if being well aware of their own service value and competitors advantage over them. Marketplace owners can enjoy the colossal benefits of having more customers in their marketplace by implementing seasonal pricing.

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