Relevance and longevity of a business in a market is most significantly decided by the prices it labels its products and services with. This becomes further profound when the market zone is extremely competitive. In the latter case competitive pricing can help you make deep inroads into the market share of the existing segment leader. In case of a prolonged market dominance tussle, competitive pricing can help your firm edge out the competition decisively. But competitive pricing is a delicate affair; you can’t go too low and in turn completely shaving off your margin and going as far as losing money on every sale on the price.
Pricing too high, not withstanding consumer inclination too can lead to adverse impact on sales volume. Therefore you need relevant market data and statistics to derive the right pricing model. This basically is what intelligent pricing is. Gathering pricing intelligence through data mining is one of the newest commercial strategy tools in the business sphere. Its relevance has grown to such an extent that retail giants now update prices of the products up to 50,000 times in a month.
One of the key reasons being increased consumer price sensitivity, which simply means the demand for a particular product can be greatly controlled via price intelligence. Moreover it also cashes in on the consumer habit of showrooming. Retailers thereby assure the consumer of the lowest prices and convert sales. With a network infrastructure more advanced than ever before, enhanced connectivity, data is the new currency. In order to price intelligently you require relevant pricing data from the market. Data collection is resource intensive task that demands significant amount of time which is almost improbable to arrange in a competitive market. This is where data mining firms come in, collecting and formatting data as per your requirements.