We all know that black Friday is known as shopping day which originated in the United States. Over the years, it expanded across the globe and offers buyers a chance to buy the products for a very cheap price. Several customers use this opportunity to buy stuff which was there on their Christmas wish list. It also gives them an opportunity to buy products from the convenience of home without waiting in a queue for hours. That has got a boost during the Covid-19 Pandemic.
This type of shopping boom online leads to an increase in the competition between established brands and online retailers. Now, which means that there will be competition for grabbing the shoppers’ attention during those days. However, it is all the more challenging for the new online shops that aim to get visibility offering the best prices. As it becomes tricky to compete with the giants. One of the best ways as suggested by the pricing intelligence companies is using a dynamic pricing solution. It helps your business get access to real-time pricing data along with an insight into what prices to set during this complex sales period.
What to Expect on a Black Friday Sale?
Black Friday will be held on the 25th of November this year after Thanksgiving. The last year’s black Friday experience and trends show that online stores need to begin their promotions earlier so that the sales can be predicted in advance. This can prevent shipping delays and supply issues which can negatively impact the perception of a brand.
Every customer is smart and loves making a smart buying decision. Your buyers not only consider the price of the product but also the shipping cost and time. Taking care of this aspect will help in meeting customer needs and preventing returns. If 2022’s sales season also anticipates Black Friday, the price discount on Black Friday might appear to be less attractive. However, you can expect the turnover to exceed as compared to the previous years. Electronics were among the top best sellers last year on Black Friday.
There is yet another trend practiced by giant retailers in spite of being criticized is increasing the price a few days before Black Friday. This makes reduced prices more appealing to the buyers and leads to higher revenue for the retailers.
How to Use Dynamic Pricing for Offering Best Prices
The pricing intelligence tools can help your business in deciding from the several pricing strategies beneficial for the retailers throughout the year. When it comes to end-of-year sales such as black Friday, the best pricing strategy is dynamic pricing.
The benefit of dynamic pricing is that it helps in adapting the product prices to the ever-changing market, unlike the static pricing strategy that always remains the same. This enables the brands in staying competitive and adjusting their prices based on the competition. If the majority of the competitors are selling products above your price point, there are chances that the buyers will choose you over others.
Benefits of Dynamic Pricing Solutions
1. Ease the Task: When you adapt your prices to constant changes in the market at the time of black Friday, it can be exhaustive and time-consuming. It is here that pricing intelligence companies come into the picture. They suggest the best strategy for determining the price in real time based on the defined rules. The companies can also price the products automatically with the help of software. Automation can prove to be helpful during year-end sales where the prices change quickly and constantly.
2. Profitability: With dynamic pricing, you can decide your price point to be as low as the competitors for protecting your profit margin. You can also apply this to other selling platforms and marketing channels. The software will notify you every time there is a price change and thereby help you reach your goals.
3. Flexibility: Dynamic pricing gives you the chance to keep your profit margins at the same level for a longer time. Let us explain. Dynamic pricing helps you in focusing on other aspects of the business as well.
4. It can help Increase Demand: Dynamic pricing can help your inventories that are underperforming. To begin with, the stock can compete and create demand during the sale season. So, dynamic pricing can help you focus on the products which are not being sold that often and keeping an eye on the highest-selling product can help you bring in the revenue you need to reach your goals.
5. Easy Changes: Pricing intelligence companies like WebDataGuru can help you with their amazing platform to change the price changes as and when necessary. To elaborate, eCommerce channels like Amazon use dynamic pricing. And keeping track of such changes can be very tedious. So, automated tools can help you adjust to the constant price changes with accuracy and efficiency.
6. Get Best Consumer Insights: Brands spend billions of dollars to understand their consumers better and give them the best service/product that the insights deliver to the companies via distinguished tools. These tools are pricing intelligence tools. And dynamic pricing can help you with understanding the consumer demand curve as every customer has a different need to satisfy. You can help the customers gain a new perspective on your product with dynamic pricing and make more customer base.
Significance of Dynamic Pricing Solutions for Black Friday
When you are well aware of the prices set by your competitors, you get an opportunity to set even more attractive prices without impacting your profit margin. According to a survey, shoppers consider prices as an important factor in determining where to shop. Thus, you need to ensure that your prices are cheaper than your competitors on Black Friday.
The pricing intelligence software can successfully help you in witnessing an increase in your sales during Black Friday and end-of-year sales. These companies can also help in optimizing your Google shopping campaigns so that you can get additional revenue.
With dynamic pricing you can successfully adapt to consumer demand taking these goals into consideration:
- Optimizing Sales
With the help of automated software for pricing intelligence strategy, determine the lowest optimal prices. This will enable you to stand apart from the competitors and gain significant market share and sales. You should set a minimum level to make sure that the sale is profitable.
Black Friday sales are always something that all online retailers look forward to. As shoppers also wait for the same time to grab some good deals on their loved brands. So, dynamic pricing can help you make the right move during this year’s Black Friday time.
- Maximizing Profit
You must find a balance between your sales projection and the maximum price the target audience is willing to pay for your product. This will help in identifying your market position and improving the profit margin with optimum prices.
Ways to Achieve Optimum Price on Black Friday
According to pricing intelligence companies, you can use these few ways for setting the optimum price:
- Decide Optimal Discount For Products
At these times it is not just important to set a competitive price but also to make the discounts appealing. You can use the promotion optimization software for finding the right discount for the products. Moreover, pricing needs to be set in a way that helps you achieve profitability as well as compete with your peers. Of course, it is a tricky task but pricing intelligence companies like WebDataGuru can help you get there smoothly.
- See If It Works
With the help of artificial intelligence techniques, you can predict and see how effective your price intelligence strategy will be. Experimentation is the key here. You can immediately retrieve the price that doesn’t work for you as automated tools are designed for speedy transformations.
- Attractive Marketing Campaigns
You need appealing and eye-catching marketing campaigns for drawing prospective buyers to your store. A voucher valid for a future date can also help. However, buyers appreciate the free gift or free shipping as they offer immediate benefits.
- Promote and Communicate
Now, promotional offers should be communicated via proper channels so that the users know when and where to come to avail them. Also, you should keep the price the same on all the platforms you sell on. As that helps build credibility and trust among the shoppers.
- Updated Website and App
A great user experience means better chances of a sale. Every big eCommerce website or app you open has a simpler, attractive, and amazing user interface. So, during the sale season, you should update your website and keep easy navigation to ensure a smooth buying experience.
Make the Most of Black Friday 2022
It can be said that dynamic pricing is an effective pricing strategy for the black Friday sale. This is useful especially in the online arena where prices change constantly and your brand needs to offer competitive prices for gaining significant market share.
Create an excellent pricing strategy for this black Friday with the help of pricing intelligence companies and witness an unprecedented increase in sales and revenue. You know where to come. Contact the experts today!