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There is very little in the way of competition in brick and mortar stores. However, there is some competition online.
The online competitors seem to charge much less for their product compared to the brick and mortar stores in my niche - which makes sense since they must have less overhead and more competition.
My question is: If I open both a brick and mortar store and an online store, how do I set my prices? I think the B&M prices need to be relatively high to be profitable. But, if I keep the same prices online as I do in-store, it will be harder to attract online customers.
Any thoughts on pricing when you have an online and B&M store?
There's no problem with having slightly different pricing. I've only had customers mention the difference a few times and they seem to understand when I've pointed out the shipping charges.
You are correct: if you charge B/M retail prices online, you won't sell much. If you charge internet prices in a store, your B/M operation probably won't turn a profit.
In the way of B&M Prices Vs Online Prices its a hard one as I know several B&M advertising campaigns say that buy online and its cheaper and others say online prices in store etc.
Why don't you try and do some research and see what others are doing? Then Test?
Most B & M's are running anywhere from a 300 to 400 % markup over wholesale.
Our in-store markup is just over 200% wholesale cost.
This increases local sales as it's way under competitor prices.
Our online sales - exactly same price.
Not the most profitable model, but what we lose financially is compensated tenfold by return business and customer trust.
It's a very specific niche, not competing with Wal-Mart. :-)
I'm sure your website will be on your business cards, physical address on your website or otherwise cross referenced to all your customers.
If the difference is eaten up by the shipping charges or it's not worth the time, difficulty or delay to comparison shop, no problem.
Any more then this and the customers will see at your B&M and then purchase online, or buy online and return at your store and other such complications.