3 ways to help you manage your dental supply store pricing

Managing any type of eCommerce store, in particular a dental supply store, can be a balancing act.

You want to keep your prices affordable to encourage customers to buy from you, but high enough that you make a decent profit.

When you’ve worked out your cost-plus pricing, but you’re still looking for a few extra ways to boost your profit margin, here is some guidance that will help:

Article topics

1. Monitor your competitors’ prices
2. Encourage existing customers to buy more
3. Use sales tactics to get rid of excess inventory

1. Monitor your competitors’ prices

One of the easiest ways to determine your price point is to identify your competitors and see what prices they are charging for products.

If you sell a small number of items online, you can do this manually by checking your competitors’ websites. However, with a dental supply store, chances are that you will be selling a lot of different products. In this situation, automated price monitoring tools are the best option.

As well as the product prices, also look at what your competitors charge for delivery and associated costs, and whether the products they sell are out of stock. If they’re out of stock, you can implement a price increase to capitalise on demand.

Top tip: A quick win when it comes to selling online is to offer a price match guarantee. This is when you agree to match a lower price on an identical product found at a competitor’s store.

This not only gives you a competitive advantage and builds customer trust, but also provides you with valuable market data you can use to shape your pricing strategy in the future.

2. Encourage existing customers to buy more

It’s much easier to encourage an existing customer to spend more than it is to encourage a completely new customer to buy from you for the first time.

In fact, existing customers spend nearly a third more online.

Reviewing the products you sell and the trip customers take on your website can increase your average order value (AOV). For example, you can offer:

• Bulk buying discounts
• Bundle deals
• Cross-selling (where you encourage customers to buy related items)
• Upselling (where you encourage customers to buy a more expensive version of a product)

High-quality customer data is essential when encouraging existing customers to buy more items – look at their order and browsing history to discover the right products to suggest.

Top tip: A loyalty programme can also be a smart way to get customers to buy from your dental supplies store again and again.

What you offer as a reward is up to you – discounts on future orders or free/expedited delivery are popular with customers!

3. Use sales tactics to get rid of excess inventory

Even if you manage your inventory with laser precision, there may be times when you have more stock than you can handle. For example, a miscalculation when ordering or inaccurate forecasting.

Having too much stock in your warehouse can be as bad as not having enough. Not only are you spending money on storing your goods, but your money is tied up in excess inventory, meaning you can’t invest in things like marketing or paying suppliers.

Plus, there’s the risk that products like bonding agents and cements could expire, meaning you are unable to sell them.

Offering your excess inventory at a reduced price increases the chances of selling it, freeing up space. You can do this through a dedicated ‘clearance’ page on your website. Alternatively, you can bundle up slow-selling products with your best-selling ones.

Top tip: As well as offering items on clearance, operating a flash sale, where you reduce your prices for a very short amount of time, not only inspires your customers to take action, but can help you shift unwanted stock.

Of course, while flash sales can be useful, it’s important not to be overly reliant on them. If you use them too often, customers may wonder if there’s a reason why you’re selling your products so cheaply.

Xigen: Helping dental supply stores shine online

Pricing your products correctly can be a challenge. The good news is, there are some savvy strategies you can use to make it easier, as well as ensure a healthy profit.

Let us leave you with one final tip – it’s not always all about the price. Understand your unique selling point; what you can do to keep your customers happy that your competitors can’t.

Show how you can provide value, and you don’t have to worry about being the lowest-priced supplier. At Xigen, we have over two decades of experience supporting dental supply stores with their web development and digital marketing. Our skilled team will make sure your eCommerce website runs smoothly, and manage your marketing strategy to ensure you stand out from your competitors.

Contact us today, and let’s give your existing website a check-up!