Blog

Price analysis is the solution for competition !

Prices shouldn’t be used as the main tool in maintaining competitiveness. It is unwise to adjust them as a reaction to the changes in the market. Quality alone is no longer enough as a selling point. Even if you add excellent customer service to it, customers won’t hesitate in going to another supplier if they offer better prices.
That’s why pricing analysis software will be a great option, especially for high volume inventory and sales. It is very important to know how to adjust your prices. You need to know the right time and levels for your adjustments.

The following are the major ways through which pricing analysis software is changing retail business.

Analysis and Adjustments

You need to know how your competitors are pricing their products to set competitive prices. Without pricing analysis software, doing price research would mean going from one site to another to view prices and collecting manually. This is a tedious process. It is labor intensive, time consuming and expensive.
Price analysis software can provide the needed guidance in setting the right pricing based on rules the retailer set up, such as upper and lower limits and even profit margins in some cases. The goal is to keep prices competitive. Once you have all the price details you need, it shouldn’t be difficult deciding on prices that allow you to be competitive while ensuring profitability.
Price adjustments are not only about price reductions. Price increases can also be implemented for certain items that may have been priced way lower than the usual prices. They should be implemented in ways that make them less noticeable. But price reductions should be implemented to create the best impact on customer attention. Remember how easy it is to find price information online. Also, your competitors are also tracking your price adjustments so they can make adjustments to make their prices look better. A couple of years ago, it has already become a practice for online retailers to change prices almost hourly. There are reasons for this and these reasons are bound by the idea of timing. Unlike in the case of bulk purchases timing significantly matters in retail price adjustments. This is because retail buyers generally don’t negotiate prices. The assumption is that what they see on the tags are what they get.

Providing Useful Data for Price Optimization

The prices set by your competitor provides the advantage of being able to play the price war game. As long as you don’t sacrifice profitability, you can try to match what your competitors are offering.
In some cases, the prices offered by competitors can help you decide to look for new suppliers for the products you are retailing. If some retailers are able to offer significantly lower prices, you might want to investigate where they are getting their products. They might be sourcing their items from a supplier that can offer really low prices. And you might want to find that supplier or explore the possibility of a better one.
Using a pricing analysis software greatly enhances retail pricing strategies. The actual price details compiled by the software serve as the basis in adopting strategies, discount, psychological and prestige pricing.
Finally, there’s no doubt that price adjustment software is indeed helpful in making the right pricing decisions. You just have to make sure that the software you are using is reliable. Try to check the company data online, the owners , staff and even check in Linked in such as EPA, e price analysis to see their trustworthiness. A price monitoring may be the best retailers need for an ever-growing and evolving online and offline retail world.