The big news in retail – and pricing – was the announcement of Amazon’s “Make An Offer” experience. From Amazon:
Make an Offer is a feature that’s available for select Collectibles and Fine Art items. This feature lets you make an offer to buy an item for less than the current price from participating sellers.
Basically, shoppers can either buy an item at full price…
… or make an offer lower than list price, which will be submitted to the seller.
The seller can then accept, or come back with a counter-offer. “Make an Offer” is set to expand to hundreds of thousands of products in 2015.
This move by Amazon illustrates a few things:
- Retailers are competing more than ever for wallet-share from consumers. “Make an Offer” will attract another section of customers hunting for a deal.
- Flat, traditional pricing strategies are poor ways to approach large groups of customers at once.
- Pricing, even with current technologies, is ripe to be overhauled with new data – specifically, customer-sourced willingness to pay.
- 1-to-1 pricing negotiations are smarter, and more palatable, for both buyers and sellers.
Customer Engaged Pricing is the natural endpoint for pricing and programs like this one from Amazon. It’s only a matter of time – and resources – until customers will be taking control off discount transactions.
Will you use “Make an Offer” from Amazon? Why or why not?
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