MSRP is the recommended sale price that a manufacturer establishes for each of its products. A priori, something simple to understand; however, the control over it inexorably influences the index of profits and positioning of a firm.
The main handicap of brands that sell through brick & mortar retailers is that they do not have an exact knowledge about the prices at which their products are sold within the generality of the market. And being on top of everything is impossible.
MSRP monitoring is vital for a manufacturer to be able to successfully know the price at which its products are sold in the different ecommerce, so that it can:
Maintain your brand image
Position yourself as a brand of interest for the stores themselves.
Being able to monitor promotions and discounts offered under a brand is essential for the distributor, since this is a key factor in the perception that takes shape in consumers.
The placement of prices besides the brand's opinion is done, above all, in times of campaign or specific offers. As a result of brands distrust towards retailers, more and more manufacturers are directly showing the consumer the PVPR that they themselves indicate through stamps and banners. In this way, they dissociate their direct responsibility on the price that the store ends up placing on the products.
However, this initiative is good as a protection mechanism, but the truth is that in the mind of the consumer - and in the real formula - part of responsibility is the stores and another part is the brand itself.
Pricing tools for distributors precisely allow brands to know at all times compliance by stores of their recommended prices.
From ecommerce to the physical store
It is clear that since the boom in Internet sales, the breadth of the countless markets in which brands can sell is infinite. However, even the digital vision cannot separate manufacturers from physical points. And MSRP monitoring is as or more important in the stores in street, shopping centres and department stores.
At this point, Omni channel monitoring of the products should be highlighted. That is to verify if the MSRP is being respected in the digital market and in the physical market, preventing the preference of buying one or the other way by the client just due to a price issue. The differentiation of prices per channel is not yet consolidated one hundred percent, so it is necessary to carry it out carefully so as not to make mistakes that incur the loss of potential customers.
Today, there are pricing tools such as the MSRP InStore app, which incorporates, in the same application, price tracking in real time, both in ecommerce and in physical stores.
This Omni channel component allows manufacturers to have a clear vision of the markets in which there are price battles for the same products, being able to recognize them and avoid them in time, maintaining a close and beneficial relationship for all parties, brand and seller.