Research On Treadmill Pricing Mechanism Of Company A In E-Commerce

With the rapid development of China's economy and the great enhancement of people's living standards, people have been attaching greater importance to healthy life. Running has become one of the most popular sports, which makes treadmill become popular indoor fitness equipment. Meanwhile, the development of e-commerce technology has changed the traditional business model. A growing number of treadmill manufacturers sell products on e-commerce platform in order to take advantage of this convenient platform to expand sales.To maximize profits on e-commerce platform, in addition to referring to pricing theory of the traditional markets, enterprises should also take into account the characteristics of e-commerce platform to make correct pricing method and choose reasonable pricing strategy.In 2014, company A launched e-commerce platform to sell their treadmill products. Pricing has been a more difficult problem for the company given the unsatisfactory sales situation in recent years. Formerly, the decision-making solely based on cost and experience, with a relatively high randomness.This article research collects sales data of company A and the treadmill industry on e-commerce platform in nearly 2 years, analyzes the internal and external environment of company A, and points out the problem in pricing of e-commerce platform of company A. There are four main problems as follows: pricing goal deviation, consumer groups deviation, single and unscientific pricing method, and product loss in bestseller price line. In order to solve these problems, treadmill e-commerce platform is firstly divided into low-end market and high-end market according to the sales data of 2015, then pricing is analyzed respectively according to the characteristics of the two markets.In view of the treadmill low-end market in e-commerce, firstly, data are used to establish demand model in which sales change with customer price. Then the model is used to solve a great price elasticity of the low-end market, indicating that the low-end market consumer groups on the treadmill are very sensitive to price changes. On the basis of the foregoing, the author puts forward two kinds of pricing method, one being based on the price elasticity of the product, with managerial economics method to calculate the maximum profit of sale price; the other being subject to the competitor oriented pricing method.In view of the treadmill high-end market in e-commerce, firstly, high-end sales data are used to determine the less resilient characteristics of market price, which reflects the fact that the high-end market consumer groups are not sensitive in price. Then according to the company A's products sales history, the author develops highly profitable pricing objectives, and proposes consumer-oriented pricing methods.To help the implementation of pricing methods, the author proposes sales season sales pricing strategy based on sales characteristics of company A. The product mix-pricing strategy and differentiated pricing strategy are also proposed based on treadmill features. Through the implementation of the pricing strategy above, company A would achieve better returns.The analysis and recommendations in this paper are expected to help company A get good treadmill product sales on the e-commerce platform, and provide references for other treadmill company e-commerce platform pricing.