Do you already employ intelligent strategies for price optimisation to increase the competitive capacity of your company? A successful business can be measured against various criteria. To survive in the market, however, companies have to be competitive, maximise profits, exploit margins, increase sales and simultaneously ensure customer satisfaction. Various adjustments can be made to reach these objectives, but nothing offers as much potential as the price! For this reason, a well considered pricing strategy should belong to the daily activities of every successful retailer.
Price optimisation – Everyone needs it, but few actually practice it
All retailers are aware that even minor price optimisations can lead to a significant increase in profits. The majority of companies, however, lack a professional pricing strategy and their implementation of an active price management is still being handled too poorly. What might be the reason?
1. Increased outlays in personnel and time
Initially, the development and implementation of a pricing strategy often poses a high time and cost factor. But only with a precise market overview can you become familiar with your competitors and set prices correctly. A well considered approach allows prices to be optimised longer-term and profits then maximised. Many companies still have little appreciation of what effects a precise pricing strategy can have. Consider the cost and personnel outlays on these grounds as an investment in the future of your company.
2. Tools lacking during implementation
To keep an eye not only on your own products and prices, but also on the wide array from your competitors, you need to employ support tools. You thus not only save on resources, but also arrive at even better decisions. Technologies like the blackbee Retail Intelligence Suite provide you with a market overview and assist you in your price optimisation.
3. Missing know-how
To implement an optimal pricing strategy at your company, you must also assign the responsibilities for it. Each responsible employee should not only check and analyse the results regularly, but should also be informed of the latest technological developments in eCommerce. Encourage, therefore, an interaction with pricing experts. Inform yourself regularly at conferences, in case studies, whitepapers or context-specific newsletters. Support your employees with targeted trainings or seminars.
4. Which products should have their prices set?
To implement a successful price optimisation, you need to define in advance which products should be newly priced. Create a focus article list, first of all, that will form the basis for your active price management. Deliberate also upon which price-strategic options you still have. In this way, you can not only reduce and increase prices, but also plan discount campaigns or focus service activities.
Price optimisation – Implement strategies consistently and longer term
First and foremost, it is important that you establish an awareness for pricing within your company. Inform yourself regularly on the latest technological developments and never shun structural changes to the company. Always remember to conduct regular market analyses! After all, only those who know their competitors will enjoy long-term success. In the end, regardless of which strategy you choose, most important is that it is consistently and enduringly implemented.
We offer you individual solutions to price observation and price optimisation in online retail. Test blackbee now and improve your margins!