Due to the dynamic marketplace, constant change in prices of the competitors, and easy online access to pricing information, it is becoming increasingly important for brands to keep up correct prices to make optimum profits. Retailers regularly monitor their competitors to ensure that they offer the best price in the market keeping many factors in mind. One of the quickest ways to ensure this happens is by hiring services of a company that can assist in competitive pricing intelligence for your products.
Some of the objectives that a retailer can accomplish with a good pricing strategy are mentioned below:
1.Growth in Sales – When the pricing is modified or altered to increase the sale, the sales volume will increase.
2.Increase in Profits - If their pricing is right, they can make more money either directly or indirectly. If the units sold are more, it means the pricing is influencing the profits indirectly. It also affects it directly in such a case, as the margin multiplied by a number of units sold increases the total profit.
3.Larger Market Share- The competitive pricing intelligence also assists in increasing the market share for the retailer in a market which was not penetrated by them as yet or the share was lesser.
4.Managing the Competitors – To be able to avoid competitors to enter your market area and take over your loyal customers, the pricing intelligence can assist in providing the right information at the right time to either lower or modify the price points such that it can benefit the business in the long run.
5.Better Customer Satisfaction- “Customer is the king”. Hence it is advisable to manage the pricing to benefit your customers. If they feel confident about your brand and its pricing, they will not only buy more but also refer more.
Some of the objectives that a retailer can accomplish with a good pricing strategy are mentioned below:
1.Growth in Sales – When the pricing is modified or altered to increase the sale, the sales volume will increase.
2.Increase in Profits - If their pricing is right, they can make more money either directly or indirectly. If the units sold are more, it means the pricing is influencing the profits indirectly. It also affects it directly in such a case, as the margin multiplied by a number of units sold increases the total profit.
3.Larger Market Share- The competitive pricing intelligence also assists in increasing the market share for the retailer in a market which was not penetrated by them as yet or the share was lesser.
4.Managing the Competitors – To be able to avoid competitors to enter your market area and take over your loyal customers, the pricing intelligence can assist in providing the right information at the right time to either lower or modify the price points such that it can benefit the business in the long run.
5.Better Customer Satisfaction- “Customer is the king”. Hence it is advisable to manage the pricing to benefit your customers. If they feel confident about your brand and its pricing, they will not only buy more but also refer more.
