Here at MakeTank, our idea is turning Makers into Vendors and this means turning each sell through our marketplace in a profit. Some of our Makers sell also via other online channels (their personal website, other e-commerce sites or marketplaces...) and sometimes they decide to offer their products at a discounted price on some sites, without changing the price of the same products also on the other channels.

This could seem a good idea to boost sales on some websites, but in the (not so) long run selling the same product at different prices on different channels is a problem for us but also for the Maker him/herself. For three main reasons.

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Who buys online always compares prices
We're investing in many promotional activities to attract visitors and potential customers on MakeTank, and we'll do this more and more in the future. Online customers are "evolved customers" who spend some time, before buying a product, comparing its price on different websites. If a customer finds the same object on different channels, of course he/she will buy it on the site with the lowest price.
The result? A customer may discover an object on MakeTank, but then he/she buys it on another website where it's offered at a discounted price.

No one wants to be fooled
What happens if a customer buys an object on MakeTank, at its full price, and then after a few hours finds the same object at a lower price somewhere else? This happens often on travel booking sites: you make a reservation for an hotel at a price and then find a better offer on another booking site, for the same hotel.
What happens is that the customer thinks MakeTank and ultimately the Maker are fooling him/her, therefore he/she decides not to buy from us anymore, or not to buy from those Makers who seems to be confused about their prices.

People get used to price cuts
When people see that an object is often available at discounted prices, they don't buy it at full price anymore, even if they are actually interested in it. They know that sooner or later it will be sold somewhere with a price cut.
Therefore, if a Maker calculated the final price of an object to get a profit, now he/she can sell it only at discounted prices, wasting that profit.

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Of course there's nothing wrong in selling on different online channels, but you need a strategy to do it in the right way and avoiding all risks for your profit.

This is what we suggest: first of all calculate the profit you want to get from an object, then define its price and keep it the same on any online channel you use. When you want to start a special offer for your objects, maybe because you want to start a new collection, use the same discounted prices on all your online channels.

This is the logic big brands (and you have to think big!) follow on their e-commerce sites. In this way profits will be slightly better because your margins are always preserved. And your image as a Vendor will be better, because you will be consistent with all your business partners and with your customers.

Credit photo: SBB and Craig Murphy

 

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