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In this age and time, information matters the most! For any business, it is important to have the right information. Price intelligence plays a crucial role for the retailers if they wish to sustain in a fast-growing market scenario which is highly competitive in nature. If retail price intelligence is performed the right way and the information is used effectively, it can ensure the success of any business.
What is Price Intelligence?
Retail pricing intelligence, also known as price monitoring is the process of collecting the data and analyzing the competitor data and market pricing. The information collected in this process can be used later for making business decisions. The data can be used for creating pricing strategies.
Importance of Pricing Intelligence in Retailers
Online retail price intelligence plays an important role for every business but it is all the more important for retailers. Generally, retailers collect pricing information about the competitors but that is not enough. For example, if you are a reseller, you need more information for in depth insight. They need to collect historical data about price changes in the past and look for trends or patterns. It helps in understanding the motive behind the price changes made by the competitors.
How Price Intelligence Can Help Retailers?
There are a few reasons that make it essential for retailers to pay attention to retail price intelligence. For retailers that are trying to improve their business or stay ahead of the competition, price intelligence is the key!
1. Retail pricing is dynamic
If there is something constant in the retail industry, it is the price change! Pricing is dynamic and they change quickly and a few times a day. Hence, a retailer needs to develop a good price intelligence strategy for keeping ahead of the competitors.
Setting the right prices for the products at the right time will have a positive impact on sales and profits.
2. Competitive advantage
Retail price intelligence enables a business in gaining a competitive advantage. When a retail business is well equipped with the right information in the form of data, it offers significant insight for making important pricing decisions. A great pricing strategy helps retailers in gaining a bigger share of the market for the required product. Monitoring the competitor and collecting information about that offers insight into the competitor’s turnover and help them in making better offers at the perfect moment.
3. Adjust the prices
With price intelligence, the retailer can adjust their prices and develop a competitive pricing strategy the right way. It helps a business in protecting the reputation of the business and improves the profit margins. With online shopping coming into the picture, buyers have become quite price sensitive. It is one of the most important factors while making the buying decision apart from the quality of the product.
4. Optimized pricing strategies
Now, today’s consumers have also become price conscious which means that they will check and compare the prices by other sellers or on other portals. A retail business will suffer if they make a wrong pricing decision. By analyzing historical pricing data, demand patterns, and market dynamics, retailers can identify optimal price points for their products. This data-driven approach allows them to strike the right balance between competitiveness and profitability, ensuring that prices are attractive to customers while maintaining healthy margins. PriceIntelGuru is the best when it comes to price intelligence tools. You can always count on us for your pricing needs. As we understand the significance of driving sales and building a relationship that stays for a longer time with the customers.
5. Better customer insights
As mentioned earlier, the tools which we emphasize on always built on the basic principle of pricing and how it can help drive more sales. But the core is still customers. Our tools are more customer-centric and deal with ever-changing customer preferences. Price intelligence provides valuable insights into customer behavior and preferences. By analyzing pricing data in conjunction with other customer data points, such as purchase history and demographic information, retailers can better understand their customers' price sensitivity and willingness to pay.
6. Inventory management
Retail business always needs better inventory management system. By correlating pricing data with inventory levels, retailers can assess the impact of pricing on inventory turnover. Price intelligence helps identify pricing strategies that drive sales and enable faster inventory turnover. Retailers can adjust prices to stimulate demand for slow-moving items, clear excess inventory, or align prices with inventory holding costs for better profitability.
The main aim of online retail price intelligence is to ensure that the prices meet the target of a business. Regardless of whether a business wants to stay competitive, protect its profit margin, establish a positive reputation, or anything else, retail price intelligence can help in achieving the goals.
Process of Retail Price Intelligence
Earlier, monitoring the prices of the competitors was quite easy. There were only fewer competitors and visiting them was enough for collecting the pricing information. However, it has become complex now owing to so many competitors. While earlier, a business had buyers from the same region, local competitors were you real and actual threat.
Now, consumers can buy from a huge variety of online sellers and it has become important for any retail business to keep an eye on them.
Here’s a look at some simple steps for implementing pricing intelligence for retailers:
1. Define the Important Competitors
The first step is defining the most important competitors. There are several categories of competitors in the market. It can help identify the competitors with exact and close product matches. Having an insight into the close competitors will help in improving the pricing strategy.
2. Create a Perceived Value
Every retailer should know that the brand’s pricing strategy creates a perceived brand value in the market. It is the perceived value that motivates the consumers to buy. The buying motive can be different for different buyers. While some might be looking for the best deals at the lowest prices, others might be interested in brand and product quality.
It is not easy to create a perceived brand value as it needs analysis and a massive data. A retailer needs to determine their target market and how they will respond to the product pricing. You need to find out if the buyers are looking for cheaper products or quality at a higher price.
3. Collect Pricing Data
After having a list of the competitors, it is time to prepare a list of the products that need to be monitored. You must record the product identifiers such as SKU, MPN, and UPC. While you can manually check the prices of these products on the competitor websites, an automated solution such as a price monitoring tool is a great alternative.
4. Data Analyzing
After collecting the pricing data, the next step is to analyze them and derive insights. You need to compare your prices with the competitors to find out how competitive you are. Gathering more and more information will help in getting useful insights. Retail price intelligence also focuses on competitor pricing techniques.
5. Using Automated Software
It can be time-consuming and complex to manage price intelligence for retailers. It can be simplified using the automated software for day-to-day operations such as repricing and monitoring. Using retail price intelligence tools that offer more features can make the process easy and save time and resources. You will receive detailed pricing reports, price change alerts, historical price charts, pricing recommendations, and more.
Whether you are a new business or a veteran, competitive price intelligence for retailers can help in staying competitive and ensuring great profit margins via appropriate pricing strategy.
Enhance, build and strengthen your Pricing with PriceIntelGuru
Experience the benefits of price intelligence firsthand by ordering a demo of our advanced solution today. Discover how our cutting-edge technology can provide you with actionable insights, streamline your inventory processes, and boost your bottom line. Take the leap towards better inventory management and unlock new levels of success for your retail business.
Contact us now to request a demo and embark on a journey toward optimized inventory management powered by price intelligence. Your inventory efficiency and profitability await – don't hesitate, act now!