Just like making a new cuisine or trying out a new skill, getting the right pricing strategy for your business takes a lot of effort. And price optimization for retail business is even tougher. Right from understanding the cost structure, choosing a price intelligence software, competitor price monitoring to deciding on the apt pricing strategy for your business is very crucial.
In most cases, retail businesses go for eCommerce price monitoring tools like competitor price data analysis, digital marketing and competitive pricing intelligence to grab the target audience.
Every customer would enjoy discounts or lower prices but that would be a huge dent in the retail business. So, it becomes essential to get price optimization for retail businesses may it be online or offline. Now, that is also a very tough task to keep track of the competitors and prices of the products you sell all simultaneously.
What if we told you that, there is an easy way of eCommerce competitor price monitoring and better tools to achieve price optimization for retail? Yes, you read that right. So why wait? let’s explore more.
What is Price Optimization?
Before we dive into the tips of boosting your business with price optimization let’s understand the concept.
In simple words, price optimization, is an approach to evaluate the change of demand of a product at various levels of price.
Retail business thrives on the data received on inventories and the market analysis. Now, if you run an eCommerce business, then competitor price monitoring becomes inevitable because of the constant rise of new online businesses every single day.
Getting valuable insights from market data and changing trends is necessary to establish a pricing strategy. Competitive pricing intelligence from PriceIntelGuru helps you get those driving results in a stipulated time period. We will dive in detail about the concept further in the blog.
Tip 1: Absolute Business Analysis
Running a business and knowing your business are two different aspects. Just a bird’s eye view of your business will only help you reach short-term goals. In order to thrive and withstand challenging times, absolute knowledge of your business is vital. This means having accurate and precise cost structure, demand, historical data, product details and competitor prices.
Price intelligence software can help you get these real-time data with great insights. This will further help you in devising a pricing strategy that encompasses competitive pricing intelligence, competitor price monitoring, competitor price data analysis and much more.
Tip 2: Study the Consumer Behavior
Consumer behavior is quite an intrinsic topic per se. Understanding the dynamics of demand and purchase is significant while conducting price optimization for retail businesses. Now, here also eCommerce price monitoring tools like product matching, market trend data analysis and in-depth customer analysis can help.
Essentially, a consumer’s behavior is influenced by a lot of factors. Namely, attitudes, income, market price, product availability, variety-seeking interests and the like.
One thing that you need to keep in mind is that today’s consumer is very smart and compare prices, services and quality on every platform.
In such situations, consumer behavior analysis comes in handy. Moreover, understanding and shaping consumer behavior is the core of designing data monitoring.
With a powerful eCommerce price monitoring tool, you can study and influence consumer behavior for a longer duration by:
- Reinforcing positive beliefs
- Providing better service
- Communicating relevant messages
- Offering genuine promotional offers
- Serving experiences rather than just a product
- Experimenting with prices
- Paying attention to customer feedback
Now, that’s amazing right. Just imagine, with one tool like price intelligence software, you can achieve this and much more.
PriceIntelGuru is one of the leading pricing companies offering competitor price data analysis, detailed consumer behavior insights, eCommerce price monitoring tools and so much more.
Tip 3: Get a detailed competitor price analysis
As we mentioned above, competitor price monitoring and analysis are extensively paramount for every business.
According to a survey, almost 78% of consumers in the USA made an online purchase on Amazon. Global retail market data is more detailed. This gives you an idea that eCommerce competitor price monitoring is indispensable for your business.
Now, understand how competitor data can help you.
You can derive relevant information from Competitor price data analysis like:
- Top competing products
- Product prices
- Competitors in the different product category
- Competitor discounts and offers
- Supplier information
- Inventory data
These data help in enhancing sales prospects and tracking the competitor charts. Competitor price monitoring also lets you give out the best offer to your consumer and push the buying behavior further.
Competitive pricing intelligence offered by PriceIntelGuru is one of the best and sought-after service models across the manufacturing and retail sector.
Despite the pandemic, global retail eCommerce sales increased by almost 30% in the past 2 years and are expected to reach higher this year.
Competitor price monitoring was never this important as now. Price monitoring tools amazon offers are also good for tracking market activities.
Tip 4: Adopt Dynamic Pricing Method
Market trends are always volatile and dynamic. So, to get the best of your market share is to adapt the same model that the market shows, i.e., a dynamic pricing model.
Dynamic pricing method is where the product price changes according to the demand and supply to ensure that you are on top of the game.
Surprisingly, price optimization for retail sector can be done easily with effective price intelligence software.
Dynamic pricing does not mean that you sell at a lower price in particular. But more importantly, you can push or pull margins according to the market trends.
This method lets you run the business keeping in mind the opportunities in the market along with better profitability.
We live in an era where even a pencil is bought after thorough research on the distinctive eCommerce platforms we have. People have become so price sensitive and brand-conscious that every retailer is compelled to adopt a pricing strategy that needs to be competitive and dynamic at the same time.
eCommerce competitor price monitoring is more diverse. With the surge of millions of online retail businesses, a single eCommerce price monitoring tool is not enough.
To the extent of making profits and just to be viable, price optimization for retail businesses needs to be resourceful and comprehensive.
Tip 5: Do a lot of Trial and Error
You have to conduct a lot of trial and error before you stumble upon the pricing strategy that works for your business.
Conducting analytics and receiving relevant reports will have to be the primary approach while introducing a new pricing method.
Even if you have a small business, a good price intelligence software can let you compete with some big guns like Amazon. Yes, that’s true. That’s how price optimization for retail works. It’s out there and can be a simple yet powerful deal maker for your consumer.
The digital era has made businesses transform their ways of performance and standard practices. It’s a good thing in a way. Digitalization helps in managing inventory, competitor price data analysis can let you test your strategy with a base and you can automate many time-consuming processes thereby saving resources on so many levels.
Digital payments like UPIs, online banking and wallets have made pricing more accessible and transparent. Let us explain how. Everyone likes a special treatment. Now, digital payments can let you store consumer data and get a deeper insight into buying behavior. This further can let you sell to a customer via remarketing tools. You can provide privilege offers, exclusive discounts and promotional offers.
That’s hitting a bull’s eye. PriceIntelGuru tries to give you all the benefits of competitive pricing intelligence and eCommerce price monitoring tool in one place. What more could you have asked for?
Tip 6: Get the Best Competitive Pricing Intelligence
Any price intelligence software can give you a perspective of the market. You can track the competitors with the eCommerce price monitoring tool and let you know why the shoppers are buying from your competitors.
Almost 94% of online shoppers compare prices online. We all do that, right? So, as a retailer, arming yourself with the best competitive pricing intelligence is vital.
While monitoring competitor prices, it’s important to identify your costs and the prices they are selling. It’s possible that your competitor can give a lower price of the same product due to their low costs. So, what can you do?
You can offer an additional service or find out a different market segment which is not yet penetrated by your competitor. This can give you the first mover advantage and position yourself as the first and best.
Additionally, you can ascertain the uniqueness of your business product offering. It’s possible that you are the only seller of a particular product and this can bridge the gap of demand and supply.
That’s what competitive pricing intelligence can do for your business. It goes beyond just pricing. All competitor price monitoring tools can equip you to make smarter business decisions and better margins.
Tip 7: Identify Value Metrics
We all know for a fact that every business sells value along with its service or product. The value metrics are significant to establish an appropriate pricing strategy.
You need to know what kind of value are you endorsing and what is the customer perception of the same. As those two can be a lot different.
How can you do that? eCommerce competitor price monitoring helps here as well.
You can study consumer needs drawn from the analytics of the price intelligence software you use for the business.
It is quite imperative to align the pricing and the customer needs to get the best price optimization.
Value metrics are also needed to diversify your offers. You can change your communications and pricing strategy depending upon the perceived value.
For instance, your consumer may have the perception that your prices are higher due to an additional free delivery service you offer. So, you can cash in on the same value and communicate that for marketing and reach more audiences without lowering your prices.
Depending on your business’ attitude and maturity level, you might already be doing a few things or not at all. Competitor price data analysis can help you draw those conclusions and open the facts for discussion.
Tip 8: Go for the Bigger Piece of the Cake
Not quite literally though. Well, this means that you have to target for a bigger market share. In simple terms, you can lower your prices and sell it to the masses. This means you have a bigger market penetration and larger profit margins.
For doing that also, you need analysis that’s authentic and accurate sans human errors. And obviously, that’s possible with competitor price data analysis.
While you adapt the pricing strategy that concentrates on bigger market share, you need to focus on one more aspect. Consumer segments.
Consumer segments who are willing to pay a premium. Many shoppers pay a higher price if they find better brands with better quality.
Around 25% of American adults shop online at least a month. So, eCommerce data analytics are critical here for a pricing strategy. To captivate those online shoppers, you have to muster and master the pricing intelligence game.
Apart from this, you can also competitively price your product which has a higher potential of grabbing the larger market share.
This kind of pricing strategy has loopholes as well. You need to be careful of starting a price war with your competitor.
Tip 9: Weekend and Weekday Pricing
If you are into the retail business, you must have some peak days and some slow ones. Now garnering the best of the peak days is what matters the most.
According to your business model, you can price higher or lower on weekends or weekdays during which you have the best sales record.
If you are an online seller, then eCommerce competitor price monitoring can guide you to capture the most. The next obvious question is how.
Simply put, eCommerce competitor price monitoring is a solution where you can track all your online competitors. You will get data like when do they offer a discount or which are the days, they go for better sales from eCommerce competitor price monitoring.
Price optimization means expanding the possibilities of profitability when there’s higher demand for your product. The retail business works mainly on the principle of demand and supply.
You can price a little higher when there’s a higher demand and offer discounts when there’s a slump. This always triggers better conversions. As shoppers tend to go for discounts but also, go for the obvious peak demand time. That’s a win-win.
Tip 10: Set a Pricing Strategy and Monitor
After you come to a conclusion, you need to set a pricing strategy that works the best for your business. Then comes the harder part. Monitoring the prices constantly.
Pricing companies like PriceIntelGuru aids in such monitoring which further optimizes your growth.
You need to pay closer attention to the competitor moves while you go for a new pricing strategy. That helps in setting goals for future price changes.
Maximize Profits with PriceIntelGuru.
After reading the above pro tips, the next obvious step is taking the plunge. Power up your retail business with the best competitive pricing intelligence platform. AI-driven pricing tools can make your lives easier and help you build an organization which is future-ready.
Get smarter with our exclusive pricing tools.
Try a demo today.