Warning: The following could be the most important piece you'll ever read on the intelligent use of pricing solutions. Retail competition is much more than getting your competitors' prices and information and then reacting to it. Sophisticated pricing intelligence solutions help retailers gather information, spot trends, develop insights and strategies -- and set the most effective pricing and rules. Here are some of the brilliant ways retailers are using their competitive price intelligence solutions for savings and profit.
1. Calculate Profits / Optimal Pricing Through Insights. It's a foregone conclusion that a retailer must have the right price for optimal sales and success -- but how does a retailer arrive at that ideal number? Sophisticated pricing intelligence provides insights gained as it analyzes the data and aids in profit calculations.
2. Benchmark. Benchmarking is “an evidence-based analytical effort to systematically compare the products, services, or processes of an organization against those of other organizations in order to improve performance.” Your sophisticated pricing intelligence tool shows you how often your competitors change prices; and you can chart your own processes accordingly.
3. Know Your Competitor's Stock Cycle. How often do your competitors cycle through their stock? What about raising prices when your competitor is out of stock?
4. Know Your Competitor's Promotion Prices / Including Lowest Competitive Price Offered. Sophisticated pricing intelligence gives you your competition's promotion prices. It doesn't just tell you "the item is on promotion," but collects data on the most competitive price they offer, such as to their loyalty people.
5. Package For Profit. Lets you know how competitor is packaging and offering certain products (e.g. 50 widgets per box) so you can create your own, unique packages, at unique prices (e.g. package of 30 widgets per box) at a very attractive price.
6. Determine Most Efficient Marketing Spends. Here's how sophisticated price intelligence helps retailers spend, not waste, their marketing dollars:
* Lets retailer know to stop advertising when the demand for a particular product is high, i.e. you're likely to sell it without the advertising (avoid the pay per click fee).
* Lets retailer know to stop advertising when your products are priced higher than the competition. Can set rules that prevent their ads for that product from running. (Because companies have to pay if someone clicks on a search ad, they may choose not to run the ad at all if a consumer is likely to buy somewhere else).
* Lets retailer avoid advertising when competitor is out of stock; reduce your search keyword bids.
7. Use mobile pricing software to visit real stores to compare and capture pricing data.
8. Feed competitive pricing data to salespeople on the floor (store retailers) and they can use it to help the customer and negotiate sales.
9. Plug competitive data into your own algorithms to update prices.
10. Overall, The Use Of Sophisticated Pricing Intelligence Solutions Provide The Following Inherent Advantages To Retailers:
Objectivity; scientific approach; don't have to find and execute your own programs; utilize most advanced technology; the software provider understands the software and the marketplace; knows how to access to the information you need; and it's a long-term ongoing relationship.
Bottom Line For Your Bottom Line:
In order to know and beat your competition -- retailers must find every way to maximize pricing and cost -- aided by the most modern, most effective, most scientific, most well-rounded competitive intelligence tools and experts available.
What started as "simple" price comparison can now be used by retailers in the most amazing ways to accurately, correctly, and competitively price to make and save the most money in their business.
To paraphrase Gandalf The Great (Lord of The Rings): It's not just having competitive intelligence... it's what you do with that knowledge that counts.