Here are a couple of things to keep in mind when pricing your product and service to sell online or in a brick and mortar space.
Loss Leaders Aren’t as Effective Online: Loss leaders, or products that are sold with little or no profit margin in order to bring in shoppers, are popular at brick and mortar stores. But because selling online can be a faster and more direct process, this strategy isn’t always effective. So you want to be very careful when discounting a product or offering a product with slim margins.
Your Policies Can Impact Your Prices: Another thing that can impact what customers are willing to pay is your policies for things like returns, exchanges and shipping mix-ups. If customers know they have the option of returning a product that doesn’t fit or work out, they are likely to pay a bit more than they would at a site that doesn’t offer returns or cover them in the case of shipping mishaps.
Your Products and Services Are in One Location Online. Pricing a product online is easier because there's generally one price since there's one location. If you've got several brick and mortar stores, your product can have several prices depending on where they're sold from.
Multichannel Makes A Difference. Multichannel retailers often try to match product prices they find in online giants like Amazon. These strategies create a wedge from the price they charge in a physical store for the same product.
Product Costs Are Different Online. When you're putting a price on your product, there are some similarities between online and offline. And there are differences. For example when you're using value-based pricing on the Internet, your shipping costs and marketing budget are much lower. That gives you more wiggle room with the price.
To learn more, read: 20 Secrets for the Best eCommerce Pricing