Velocity Pricing Strategy

Velocity PRicing

Description:

Attempts to price items to capture a target number of units sold within a range and a designated time period (minimum of 1 hour).

How it Works:

Here's an example: You have an item that is priced at $10. The minimum goal is 5 and the maximum goal is 10 within an hour; if you sell less than 5 you go lower in price and if you sell more than 10 you will increase in price. If you sold between 5-10 units then the price would not change at all

Given the above scenario, if you only sold 3 units in an hour, the item would drop down in price by $5 or until hit its Min Price.

Recommended Usage

Recommended for private label sellers or items that do not have any competitors. This strategy will give you amazing control over your price point and is the most “seller customized” strategy provided you set all parameters based on sales and not any competition.

  • This is great for any site where you cannot reprice based on competitor data such as Jet.com