The success of any business is extremely affected by the strategy and tactics of pricing.
Every e-tailer is interested in effective strategy, which leads to avoiding of penetration pricing, in order to achieve such goals as significant sales boost, conversion rate growth, market share increase.
Searching for how to develop a pricing strategy retail industry performs the variety of pricing methods: value based pricing, cost based pricing, market based pricing.
Preference of retail strategies depends on the type of consumption and pricing objectives of the e-store.
The highly competitive market makes retail to look for ways of pricing and revenue optimization in view of competitors behavior.
Competition based pricing explains how to price a product in order to increase a profit by virtue of finding the best price position among the main competitors.
Competitive pricing strategy is a complicated and time-consuming process, which requires matching large volumes of data.
The process of developing and implementing a proper pricing strategy is easier and efficient with Competera.
Every pricing manager is interested how to price a product in order to sell more and in the most profitable way.
Therefore, retail is searching for the most optimal pricing strategy for their own business.
Product pricing strategy
Today ecommerce is a highly competitive field and retail almost always should base its pricing strategy on competitors behavior.
As a rule, competitive pricing strategy consists of competitors pricing changes at the moment and timely reaction of the manager of your online shop.
That reaction requires the correction of prices on certain products to achieve the high competitive ability of product group, category and online store in general.
It is important to remember, your competitors also are looking for how to develop a pricing strategy.
Today market is highly changeable and the competitors confirm this statement.
Finding modern pricing tools, competitors begin to reprice their products more frequently.
Therefore to stay competitive retailers should follow the market rhythm and keep pace with their key competitors.
The best pricing solution for online stores is to provide own competitors based strategy.
There is no sense to spend time searching perfect strategy, which is cross functional for every store.
Every pricing strategy should be based on pricing methods, which correspond to the business strategy, product category specification or the store specialization in general.
Surely, it will be perfect for pricing manager to be oriented on pricing best practices and the successful sales experience.
However, it’s all about providing the unique pricing strategy and namely utilization of modern pricing tools.
The implementation of modern pricing tools gives the opportunities to become sales leader among numerous competitors in your sphere.
Cost based pricing
Price assessment should consider two metrics: fixed price and the per cent of basic markup.
Cost based pricing is that pricing strategy, which helps retailer never trade at a loss.
Modern ecommerce pricing strategies completed with our pricing tool allow to consider all the metrics and provide the most efficient strategy.
because of benefits suggestions which are price monitoring on SKU level, timely data delivery (if one needs data at 9 am - Competera delivers it at 9 am), notifications on competitors price changings and price history analytics.Learn more