Competitive Ecommerce pricing is not simply playing with the tactics of under cutting or price matching prices with the competitor.
By making use of the right competitive intelligence technology, Ecommerce companies can help themselves and go an extra mile in creating a more competitive price in not only analytical but profitable way. Let’s go and see how it can be done by making use of some often neglected scenarios:
Here, we make use of some business cases to show and prove that all types of Ecommerce companies can easily outplay their counterparts with the help of competitive pricing tactics. You no longer will have to go through undercuts or cut up your necessary profit margins anymore!
Juggle Competitiveness with Profitability
None of the Ecommerce companies can survive by putting their focus entirely on competition while neglecting cost. For each and every one of Ecommerce companies, the competitor’s price and the product’s cost are two medium that determines the price. For all of the Ecommerce companies, profitability should be the goal irrespective of the company’s size and in order to make it possible, a company has to keep a close eye on costs.
If you find your price to be uncompetitive, then you can make it one by not only means of lowering the price but also by figuring out the ways to cut the costs. Only when you are done doing that, you can offer discounts to your customers. Woops ecommerce management system can help you to manage your discount and gift card. With the help of woops EMS system you will be able to create thousands of cards and discount coupons just by a single click.
Increase the Price when you have the Opportunity
You might be offering your products at a very competitive price but think again as it might be a little too competitive, no?
No one is denying that putting low prices will draw the customers which will further lead to potential ones. But, then again, how low will you go? If your goal was to be the vendor with the best prices, why do not you try raising your price to the maximum of the minimum? Meaning, that you can always surge your prices until you become the second cheapest competitors yet still will remain well below the competitive price.
When it comes to consumers’ mind, these little increase do not really make a difference but for your balance sheet, these little differences will definitely make a lot of difference!
Studying your Competitor
At most times, the prices of Ecommerce are driven mostly by brand level decisions and category. It can be either because of budgeting operations or suppliers deal that is in place for specific brands. Upon considering this fact, you will realize that focusing only on competitor’s price strategy along with micro managing product shall give you a sour taste.
By making use of right technologies, insights can be gained for brand and category level pricing. For instance, by aggregating certain products under one heading and then calculating their entire performance. You will be able to calculate an index value for that aggregated level which will give you a complete picture of the performance of your products vs the competitors.
With the help of these analysis, you will be able to gauge which one of your competitor’s product has advantage over yours. Upon getting the results, you will be able to adjust not only your category but your overall brand management strategies.
Analysis of Competitor’s Historical Trends related to Pricing in Special cases
Shopping is an action that is related to the matter of “Now” while the same cannot be said of pricing. Almost each company has timed pricing or discounts for each of their products which they give from time to time. While some companies opt for weekend sales while the rest go with late night frenzy. You as a competitor should be studying your rival’s trend and then should act diligently!
Putting Focus on Competitors “Out of Stock” items
Prices matter only till when the company is able to deliver the product.
The availability and the pricing of the product go hand in hand. If a product is not available on your competitor’s site, then his customer in most certain cases would not wait until he gets his stock refilled and exactly same phenomena goes with the pricing as if he finds anything expensive at a certain place, he will move on to find a better price for himself.
These are some of the opportunities that you can capitalize on. If you have a certain product that for now is not available at other Ecommerce stores, then you probably can take advantage with the pricing.
Negotiating the Right Way with the Help of data with Suppliers
Data can act as a weapon for you when it comes to negotiating with your suppliers. You will hardly find anyone who will argue when he is presented solid data and suppliers to your store is no exception from that. It is recommended that you do not complain directly about the prices to your suppliers when compared to the prices to the competitors. Rather, show them that by giving you a better price, they would be doing themselves the advantage as your store’s performance is directly related to theirs. So, if you perform highly, you will buy in high quantities which ultimately will benefit their cause.
Competitive Pricing Intelligence happens to be a multi-dimensional analysis which under any circumstances cannot be regarded as the only tool for monitoring product prices against competitors.
Despite the fact that it offers a big jump in the profits, it in most cases is not enough. If you go on to take a further step by implementing the steps mentioned in this article, you will easily outsmart your competitors in today’s competitive Ecommerce’s market!