eBay Auction Pricing Strategies.If your items aren't selling,

eBay Auction Pricing Strategies.
If your items aren't selling, then you might have a bad pricing strategy. There as many pricing strategies in the world as there are buyers - if you look at two businesses selling the same thing, often the only difference you'll be able to find between them is pricing.

The 'Few Dollars More' Strategy.

Here's something you might not have thought of. If you set your auction's starting price to what you would usually charge for Buy it Now, while setting the Buy it Now price a few dollars above, you can make a profit by setting off an interesting psychological reaction in the buyer's mind.

Here's what they'll think. They want the item, but why should they bother bidding for it? After all, they could use Buy it Now for just a few dollars more, and be sure of getting it! Doing things this way makes the value of the Buy it Now option extra clear to the buyer, and makes them more willing to pay extra for the privilege.

The 'One Dollar Less' Strategy.

This is simple, but requires you to keep an eagle eye on your competition. As soon as they start a Buy it Now auction for an item you stock, start an auction for one of those items yourself. Match the title closely, but price your item one dollar less than theirs. This will mean that your auctions will sit together in the search results, and who's going to see both and go for the one that's a dollar more expensive?

The 'Free Shipping' Strategy.

Buyers really hate paying for shipping. With Buy it Now, you might find it easier to incorporate the shipping cost into the main price of the item, and then write "free shipping" in the auction's title. You'd be surprised how many buyers would prefer to pay one price including shipping for the auction, instead of having shipping added on at the checkout. Again, this is psychological: they pay the same at the end, but it doesn't feel like they've paid an unnecessary 'extra' cost for Internet shopping.

The 'Go for It' Strategy.

If you'd like a slightly more risky strategy, try this. List your item for the maximum duration (ten days), starting the listing on a Thursday so it goes across two weekends and finishes on a Sunday. Set the starting price to the minimum (one cent).

What you're trying to do here is give bidders as long as possible to discover your auction, so that they push the price up themselves. Pay for a few upgrades like bold and highlight, to give them a helping hand. If you do this right, you can make a much bigger profit than you would have with any Buy it Now price, especially with a medium or high value item.

Since running your auction for longer means that more people see it, you should always take the longest duration of ten days, right? Not always. In the next email, we'll talk about how long your eBay auction should run for.


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Don't let Poor Customer Service Kill Your BusinessOne

Don't let Poor Customer Service Kill Your Business
One of the quickest ways to kill your internet business, or any business for that matter, is to offer poor customer service. When people take the time to complain about some part of your product or service they will have been stewing away for a while before they decided to contact you. If they can't get hold of your or you don't respond to their communication, you'll end up with a very angry customer. When that angry customer has had enough and decides to let the world know about your terrible product they'll attract attention like bees to a honey pot.

The last thing you want for your business is bad press. Bad news spreads quicker than good news... People love to have something to gripe about and if that gripe is about your product, you're going to loose sales very quickly.

Before you can decide on a good customer service system, you need to be absolutely certain your product is top quality and will exceed your customer's expectations. Once you are sure of your product you can be fairly certain that customer service issues will be related to:

- Payment problems.

- The customer purchased the wrong product.

- Installation issues for software products.

- Setup problems for a web service.

- Delivery problems for a physical product.

You need to decide on some basic ground rules for your customer service department. For example:

- Will you handle all customer service issues yourself, or will you hire somebody to do it for you?

- How quickly will you reply? If it is going to be longer than a few hours, you need to send an immediate email acknowledging the issue and stating that you will reply within 12, 24 or 48 hours, what ever you decide on.

Next you need to decide on the actual method you will use to receive and reply to customer service issues. The three most popular customer support systems are:

1) Normal Email.

As part of your website you could have a web page with your contact details and simply state your email address as one of the methods to get hold of you.

Bear in mind that email harvesting programs will get your email address and over time you will be inundated with spam. To get around this you could use a small graphic which contains your email address, or you could display it in this format: "me [AT] mywesite.com" with a note to your customers to replace [AT] with @.

Another point to consider is using a unique email address for customer service issues. You don't want to mix this email with any other accounts, keep it separate so you can keep track of it.

2) Feedback scripts.

There are simple feedback scripts which are freely available online and which allow your customers to contact you without you having to display an email address anywhere on your website. Your email address will not even be embedded in hidden form fields or other HTML tags.

These scripts allow you to use a form on a contact page into which your customer can enter their contact details and the nature of their customer service issue. The script will then email these details to your email address.

While these scripts are more secure than leaving your email address visible on a web page, they don't offer a means of tracking support issues.

3) Help Desk scripts.

By far the most professional method of providing effective customer support is to use a help desk system. Your customer will have to open an account before they can log a support request which eliminates most non-genuine support issues. After opening an account, they can log a support issue which is automatically given a unique identification and the details stored in a database. The customer is immediately sent an email explaining that their support issue has been logged and they can expect a reply in 12, 24, or 48 hours, or whatever time span you set.

The beauty of a help desk support system is that even if your email fails for some reason, you won't miss any support requests. All you have to do is login to your support desk administration panel and all the unanswered support requests received will be displayed. Your task is then to answer each support issue and the system will automatically mark the issue as closed.


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