It is important to understand that retail competition isn’t just about getting the prices of your competitors and then reacting. Competitive price intelligence is about gathering information, spotting trends and developing strategies and insight. This will ultimately help you set the best pricing and help you reach the top in your industry.
One thing competitive price intelligence will do for you is to help you calculate profits and decide on the optimal pricing. Everyone realizes that the right price is essential, but most people don’t know how to get to that optimal price. Price intelligence will help by providing insights that are gained while the data is analyzed.
It will also help you by charting how often competitors change their prices. This can be important information; you will be able to see how many times per day or week the prices are changed on comparable products. This can help you start finding patterns and incorporate those patterns into your own business strategy.
Competitive price intelligence software will also help you find out about your competitor’s stock cycle. This can be extremely beneficial to you. Know when your competition runs out of stock and gets new stock in; while they are currently out of stock, you should have those products in stock and consider raising prices.
The price intelligence software will also be able to tell you the competition’s promotional prices. It won’t just say that the item is on sale, but it will collect data as to what items are on sale and what those prices are. It will even give you the price difference and percentages so that you always know their prices.
Think price intelligence software only tells you price information? You are wrong! A lot of different software on the market will also tell you how the competition is packaging their items, which can allow you to create unique packages and unique prices. For example, if your competitor is offering 50 pieces of candy per box for $50.00; you could start offering 25 pieces of candy per box for $25.00 per box. Of course, the price you are offering is half of the other competitor, but the consumer is only getting half the amount of candy. The smaller price tag will appeal to most consumers and they will want to purchase your item, even though they get less.
Competitive Price Intelligence could help you understand the retail competition giving you invaluable insight into the market. Contact Price Manager today for info.
