Category Archives: Retail Price Optimization

Why Retailers Need To Use Price Tracking Software For Rational Retail Pricing

There is so much talk about the fiscal cliff and consumer uncertainty these days. Luckily, pricing is one key lever that you can almost always pull to stabilize your business and, thankfully, price tracking software is available to aid with rational retail pricing. Remember, a 1% increase in price can lead to a 11% increase in profit, as discusse...
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Why “Goldilocks Pricing” Is Perfect Competitive Pricing Ploy: Provides Customer Choice & Retailer Profit

Editor’s Note: As we’ve written many times, customers like to feel they are in control of what is important to them. Plus, the more choices consumers have, the more likely they will choose a higher-priced item — and find the money to pay for it. (Large Assortment Choice Increases Shoppers’ Perceived High-End Quality). The findings also highlight ...
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How Retailers Can Achieve Maximum Pricing Profitability — After Seeing If Their Pricing Strategy Sucks

Many retailers are losing lots of money because they’re limiting profitability through their pricing strategies. Marketing expert, Tony Gattari of Achievers Group doesn’t mince words: A lot of businesses get the concept of pricing wrong, have the wrong view, price incorrectly, lack competitive intelligence and competitive pricing; and, in short, do...
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How Competitive Pricing & Marketing Helps Turn Perceived Value Into Revenue

Think of price as a value scorecard. Price turns perceived value into revenue. The more value you create and communicate, the higher the score. So how much can you charge for your product? You have to determine how much your competitor charges — AND, MOST IMPORTANTLY — how does your product differ from your competitor’s? (Think competitive price m...
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How Large Assortment Choice Increases Shoppers’ Perceived High-End Quality

 “Providing a large assortment from which to choose creates the perception of higher quality and increases consumer willingness to pay for it,” write researchers, Marco Bertini of The London School of Business, and Luc Wathieu of the McDonough School of Business, Georgetown University, in their article: “Choice Helps High End Products, Hurts Low-E...
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The Surprising Secret to Successful Price Segmentation

Guest blogger, pricing expert and author, Mark Stiving, wrote a great post for Upstream Commerce a few days ago on How to Get Your Customers to Like Price Segmentation. Mark highlighted how price segmentation can cause more trouble than it’s worth for retailers, and discussed ways to avoid the downsides while holding onto the additional profit. ...
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10 Important Things “Retail Winners” Know About Technologies, Empowered Consumers & Product Assortment

In their recent Benchmark 2012 retail research report, “Optimizing Assortments to Reinvigorate Retail,” RSR Managing Partners Paula Rosenblum and Steve Rowen examine progress made in retail companies over the past year regarding evolving merchandising processes, technology usage, customer empowerment, importance of data analysis and forecasting, h...
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How To Get Your Customers To Like Price Segmentation

Can you charge individual customers different prices? Are you doing it? The secret is to do it in a way that they’ll like and appreciate. In 2000, Amazon.com famously did some price testing that caused customers to be quoted different prices for the same product — and got in trouble for it. Jeff Bezos, the CEO of Amazon, claimed it was “random pric...
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It’s 10:00 O’clock. Do You Know Where Your Profits Are?

Upstream Commerce is delighted to bring you the following guest blog post about defining your ideal customer and raising prices in your most profitable lines, by marketing consultant, Dale Furtwengler:  

It’s 10 O’clock.  Do You Know Where Your Profits Are? When I began my consulting practice twenty-three years ago, I’d go into companies and a...
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How Retailers Can Gain Pricing Power Through Product & Service Differentiation

More on pricing strategy and value-added services: If you have no differentiation from the market, you are a commodity. When you’re a commodity, you have no pricing power. So unless you happen to have a sustainable, defensible cost advantage (hello, Southwest Airlines), you’re going to be in big trouble.

So what about competitive pricing? How ...
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Pricing Experts: What Retailers Should Do With Their Pricing Strategy To Avoid JCPenney’s Pitfalls

Three days ago came the latest low in Penney’s “race” to the bottom, when former Target Executive, Michael Francis, who was brought in to help redefine the marketing of Penney’s brand as well as manage merchandising and product development, resigned suddenly. The department store chain has been scrambling to reverse a sharp drop in customer counts ...
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How Retailers Can Get Pricing and Profit Right

In my recent blog post, “5 Ways Retailers Sabotage Their Own Pricing and Profit: The Enemy Within, Part 1“, I described that a one percent price increase can boost a company’s operating profits by 11.1 percent – much more than the profitability increase a company can expect from a one percent overall reduction in variable costs (7.8 percent), a...
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10 Reasons Retailers Should Be Very Scared About Pricing: Jon Manning Video

Be afraid. Be very afraid. Pricing is getting scary, says Jon Manning, founder & managing director of Pricing Prophets and resident pricing expert for Upstream Commerce in this dynamite video about ten things retailers should worry about with regard to competitive pricing today. If you can get past the occasional expressive language, you’ll f...
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