Hello! This is Orcel Saito.
Golden Week is over, and many people are probably thinking that online shops are fully reopening!
As with the New Year holidays, we receive inquiries from people who say their sales are not increasing, but please rest assured that they will recover.
With prices on a variety of items rising, I think many people are considering raising their prices.
If you are going to raise prices, it's best to do it slowly and safely.
It's a given.
In the case of a business I run, we raised prices by 10% over a two-month period and were able to increase sales and profits without affecting the number of units sold.
On the other hand, shops that suddenly raised prices by more than 20% despite having good sales and receiving many reviews saw their sales drop.
This is also a given.
There are two lessons to be learned from this.
The first is that if you don't think things through logically, you'll get into trouble.
It's great that the number of reviews increased to 50 in two months after the product was released, but suddenly raising the price by more than 20% does nothing to increase sales.
There's no logic between 50 reviews and a 20% price increase.
Even if it is not as severe as the discrepancy in this case, it is likely that measures that are not logically consistent are implemented quite often.
They say they don't advertise because it costs money, or that creating a set product will lead to increased sales.
Of course, there are cases where such a conclusion can be reached, but you must first thoroughly analyze the current situation and then carefully consider whether it is logically connected.
It is best to think carefully and logically about why you think you have made the decision you have made and whether there are any other options before taking any action.
The second is bias.
Bias refers to "perceiving, evaluating, or judging something or someone from a biased perspective based on preconceived notions or stereotypes."
for example,
0% → 5%
61% → 66%
95% → 100%
If you compare the two, you will see that even though it's the same 5% increase, the impression is different.
This is because our perspectives are biased.
Therefore, when raising prices, it is necessary to take human bias into consideration when taking measures.
Bias is a tricky thing, and it's also the work of bias that makes people think, "If we get 50 reviews, it's okay to raise the price all at once."
Everyone is biased, and no one can escape bias completely.
I think that people who are struggling to run an online shop alone especially need to be especially careful not to fail by doing things their own way.
It is necessary to think logically, and in some cases, to seek the help of third parties and operate in accordance with logical rules.
Bias is a double-edged sword; it's something you need to be careful of, but it can also be a powerful weapon to increase sales for your online store.
It's very interesting, so I'd like to introduce it to you again.
Learn logic and bias through examples of price hikes in online shops
