Competition is the part and parcel of every industry. It is important for every business to set competitive price intelligence for their products in order to survive and thrive. Moreover, pricing is key in a competitive market. Let us explain. When you make a mistake while pricing, it can impact your reputation or affect your profit margin. And that creates a lot of imbalances in the business. Now, for any organization to be successful, they should focus on pricing from the very beginning. As the market is prone to fluctuations and changes periodically. Not to forget that technology also keeps on evolving making it one more hurdle for all businesses to cope with. However, your pricing is something that should stay intact in the years to come or at least should be flexible with the constant changes.
Firstly, pricing plays a crucial role and it is more than simple numbers. Yes. It can be said that pricing is the exchange rate which any business puts on their tangible products and intangible aspects of the business. In simpler terms, when you offer a solution and set a price for the same, you can’t set a lower or higher price. If you set a low price, the product will be perceived as cheap and when you set a higher price, the product will be perceived as expensive.
The aim is to fix a price which reflects the value of the product as well as suits the market conditions. It is here that competitive price intelligence comes into the picture. It helps in staying competitive and meeting the exact needs of the potential clients.
WebDataGuru is one of the leading companies providing pricing intelligence solutions to businesses in diverse industries all across the world.
What Is Competitive Price Intelligence?
Let us start from the basics. Price intelligence means analyzing and monitoring to keep track of pricing data so that businesses can determine the right pricing for selling their products better. Competitive price intelligence offers pricing solutions that can help in enhancing the business.
Selling better doesn’t always mean lower prices. Selling better means offering better to the consumers. Now, it can be a lower price, free shipping, better discounts, loyalty points or any other sort of added service. What we mean is that beating your competition doesn’t always have to be through prices. But, understanding consumer preferences is equally significant to offering the relevant deal to them. And competitive price intelligence can help you in that as well with in-depth analysis and insightful data.
Furthermore, by practicing competitive price intelligence you can determine a price for your product that will reflect the value of your product. Now, you know that there are several similar products in the market like yours. The buyers will definitely compare your product with the rest of them. Comparing products before shopping is not a new concept.
Once they are convinced that your product holds better value and is worth the investment, they will make up their mind to buy your product. This is what price intelligence is all about. Convincing your consumer towards buying what’s best for them.
Significance of Price Intelligence In Any Business
Online business is tricky but has a lot of potential to boom. So, pricing intelligence also needs to be embraced in order to make the best of your online retail business.
Let us go through some of the important aspects of price intelligence.
1. Improve Sales Figures
Enhancing the sales graph is what every company wants. There are allocated teams to just boost the sales up. Now, when you practice price intelligence, you indirectly affect the sales figures. Yes. Let us elaborate. When you determine the right prices, it will help in fetching the attention of customers towards your product which ultimately improves your sales. The right price can be just the beginning for new customers. You can also showcase what else you offer which can boost your over all sales.
2. Improve Profit Margins
Now, ultimately profits define the success of any business. When the pricing data gets monitored, one of the main benefits is that you can determine a price where you can receive good profits. A price which can help you achieve the goals also keeping your customers in mind for the future. This not only enables you to sell better but also helps in growing your business high simultaneously. Creating a good loyal customer takes a lot more than offering a better price than the competition. You need to show that the product is much more valuable and can not be bought from any other company. And that sort of loyalty is not built in a day. Big giants like Amazon, eBay or Walmart invest millions to just get that brand loyalty in the consumers which encourages more referrals and word-of-mouth publicity.
3. Increase Customer Satisfaction
You can’t have a business without customers. Let us rephrase that. You can’t have a business with unhappy customers. You need customers and you need to retain them. That ensures more sale in the future as well. Now, the customers only invest in products which they feel are able to meet their needs, taste and budget. If your product benefits them, they are ready to pay for it even if it is higher than your competition. The concept of pricing is simple; customers won’t pay more than the true value of your product. It is to be noted that for customers it’s all about the value you offer. If the price determined by you offers them that value, you won’t have to worry about customer satisfaction. And it is literally killing two birds with one price!
4. More Views On Product Search
When the customers decide to buy a product, they never settle on one product. They go through various products, analyze them, compare features and prices and then make the final decision.
Therefore, it is important to set the prices in such a way that when customers search for a product like yours, it appears in front of them. Competitive price intelligence can help you in setting the appropriate price.
5. Enables You To Compare Prices
The prospective buyers won’t land on your page and invest in your product just like that. Customers know what they want and how much they should pay for buying something that they need. One of the best things about competitive price intelligence is that it enables you to set prices on the basis of what the data offers you.
While deciding the price you can consider all the factors such as market demand, profit, demand for the product, etc. Thus, when the price is determined, you would offer the customers a realistic price.
When customers start to compare your product with competitors in the market, it will be easy for them to make the decision. If they feel your solution is realistic and caters to their needs, they will buy your product without any second thoughts.
6. Shows Value Of Your Product
Yet another benefit of competitive price intelligence is that it showcases the right value of your product. As mentioned above, if you sell the product at a higher or lower price, the buyers will perceive them to be cheap or too expensive. Hence, setting the correct price is crucial.
When you practice competitive price intelligence for your business, you are able to set a price that reflects the value of your product. As a brand, if you feel confident that your product meets the needs of the customers, setting the best price for them is what price intelligence wishes to deliver.
7. Get An Edge Over Competitors
Competitive price intelligence is the key to differentiating your product from others in the market. When you carve a niche for yourself and your product stands out, prospective buyers will be attracted towards your product. This will lead to more sales for your e-commerce business.
Pricing intelligence can prove to be a smart decision as it won’t allow you to quote just any random price. It allows you to sell your product at a price which highlights the value as well as the quality of the product. This is a prerequisite to taking your e-commerce business on the path to success.
Pricing intelligence works on web scraping which extracts price-related information online from your competitor’s website without any hassle. There are web scraping tools and software which can simplify the procedure for you. The pricing data keeps on changing and hence you must perform web scraping on a regular basis.
For using competitive price intelligence for increasing sales you need to;
- Monitor the competition
- Perform research on other platforms
- Choose the right price intelligence strategy
- Stay up-to-date with the latest trends
- Have quality data in hand for your perusal
Identify the Target, Aim and Price!
Every company wants to create a pricing strategy that builds a business for years to come. Maintaining a good online business is not an easy task. And for that only pricing intelligence is here for you. Irrespective of the nature of the business, price intelligence can help you reach the peaks with flare. WebDataGuru is the right company for such endeavors. Contact us today to know more!
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