In previous articles we talked about the importance of using a software for price monitoring to know competitive information of vital importance. The purpose is obvious: to offer a competitive price, we need to know market prices. Consequently, and once we get to this point, the first question that comes to our mind is: How do I implement my pricing strategy?
Every Company has its own pricing strategy, usually marked by the pricing team, with a clear objective to enhance their competitive positioning. That strategy may vary depending on multiple factors like:
- Product popularity
- Seniority of the product
- Stock level
Hence, even if our pricing strategy may be simple, that is, aligned with the cheapest price of a competitor, this will vary depending on product conditions, brand, popularity etc. In such a way that applying our strategy may be a tedious and complex task, because it will become difficult to implement it manually without committing mistakes fixing your prices.
To simplify this task, the algorisms used for repricing, allow you to program a series of business rules, calculating sales prices depending on the different existing variables we mentioned. The benefits are clear: once the pricing strategy is designed taking those variables into account, the algorism will calculate the optimum price for every product, and it will determine which price we wish to sale it, simplifying the task in minutes and reducing mistakes on manual fixing.
Another advantage is that we can increase the frequency updating our prices, improving our competitive position in real time and increasing sales figures.
If you wish to know strategies and techniques used by giants like Amazon, you just have to ask for a demo.