Maria Jose Guerrero
Direct-to-consumer (DTC or D2C) strategies have become among the most widely used in the digital era. They allow manufacturers to interact directly with consumers, either eliminating or minimizing the role played by traditional distributors.
There are two main reasons to introduce or expand this kind of strategy: when power is concentrated amongst a few distributors, who occasionally fail to share sales or consumer behaviour information, or the need to maximize margins by improving supply chain management.
Over and above selling products through an online store, a DTC strategy aims to deepen the relationship with the customer by collecting quality data, boosting loyalty, and constantly improve products based on direct feedback.
Therefore, you need access to all data pertaining to your brand’s digital presence in any eCommerce. We recommend using tools like Minderest’s Digital Shelf Benchmark for this, as it will be crucial to implementing effective D2C pricing strategies.
The most common D2C pricing strategies
Established brands with D2C distribution grow the most and acquire more market share than digitally native vertical brands (DNVB). According to EMARKETER, they will represent more than 80% of DTC eCommerce sales in 2025 in the United States. These are the best strategies if you sell directly to consumers.
- Competitor-based Pricing Strategy: This involves analyzing and adjusting prices in line with competitors, so it requires constant market monitoring.
- Cost-plus Pricing Strategy: This involves adding a specific profit margin to the manufacturing cost of a product.
- Value-based Pricing Strategy: Prices are set according to consumers’ perceived product value.
- Skimming Pricing: New products are launched at high prices to attract consumers who are prepared to pay more for new products. Prices then fall gradually, attracting a more price-sensitive market.
- Penetration Pricing Strategy: This involves initially setting low prices to gain a wide client base quickly and increase market share. Once the client base is established, prices tend to rise.
- Bundle Pricing Strategy: This involves selling several products together for a lower price than if they were bought separately.
- Everyday Low Pricing Strategy: This involves setting low prices to generate a high sales volume with a low margin, which, when multiplied, generates high profits.
- Dynamic Pricing Strategy: This strategy allows prices to be adjusted in real time based on market variables like seasonal demand and competitors’ prices.
Factors to consider when defining a D2C strategy
It is crucial to note the following considerations to implement an effective Direct-to-Consumer (D2C) strategy and guarantee success in the long term:
In-depth knowledge of the end consumer
To implement a D2C pricing strategy, you need to be crystal clear on the end consumer’s expectations and perception of value.
This will necessitate investing in advanced systems that collect and analyze value data, reflecting customers’ buying preferences and behaviour.
Manage brand perception
In D2C models, when the seller interacts directly with the consumer, their pricing strategy can significantly influence the consumer’s perception of the seller’s brand.
Setting excessively low prices damages the brand’s quality image, while over-inflated prices may significantly reduce the potential client base.
Coordination with traditional channels
Coordination of pricing strategies is crucial for brands operating in D2C as well as traditional channels to avoid conflict or cannibalization.
Differentiating products, exclusive online promotions and special offers for the D2C channel can be enormously helpful in managing this dynamic.
Transparency and trust
In a D2C model, transparent pricing is crucial to building and maintaining consumer trust.
To do this, marketing materials need to stress the brand’s added value and the product’s benefits and adequately explain any variation in pricing or sales conditions that may occur.
Adaptability and agility
The ability to adapt prices quickly in response to market changes, the arrival of new competitors, or fluctuations in production costs is key to a D2C model.
To get the most out of any of these D2C strategies in retail, you need access to quality data and a system that allows you to view it, like our Digital Shelf Benchmark tool from Minderest.
Find out how Minderest can take your business to the next level.
Contact our pricing experts to see the platform in action.
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