Martin Granberg

Finally Black Week and Christmas shopping - will it be black or red numbers in the end?

Martin Granberg

There are several factors that influence the outcome on the last line; margins vs volume, supplier financing, campaign duration and of course choice of assortment and pricing. The choice of strategy depends on what one wants to achieve, but in these times it seems that profits probably eat turnover for breakfast.

In intensive periods, we know that a mix of campaigns and dynamic pricing is most effective and at the same time keeps the brand strong in the long term.

By monitoring your competitors' prices on their websites in parallel with the prices on comparison sites, you can optionally adjust your prices several times a day and create unique custom price lists for different sales channels, such as website, store, Google or price comparison sites.

A diagram

By choosing the right assortment to work with, the dynamically priced products will "outperform" the promotional products both in terms of sales and margin development. Depending on how long the campaign period lasts, the results will vary.

"A pattern we see is that those who collaborate throughout the chain; from purchasing, assortment, marketing and sales, often achieve results that exceed expectations," says Jan Tallroth at Priceindx and continues:

"We have extensive experience in acting as advisers to the pricing team, and with our experience and tools, strategy turns into concrete action with controlled growth as a result."

Some classic pricing strategies;

Focus on popular KVIs

Our rules can be based on popularity ranking on, for example, Google or based on customer analyses. The most demanded products are priced to attract customers to buy more. This strategy is a smart way to price products, as different discounts can be applied while maintaining the profitability of the total receipt. In addition, it generates many new customers for CRM.

Lowest price or shared lowest position

Keeping only tens of thousands of products at competitive prices is a big challenge, we provide these opportunities with automatic pricing based on rules that are governed by, among other things, margin levels, stock turnover and relation to competitors' campaigns and stock status. The rules automatically result in a price increase of 8-10% of the range in longtail, which has not been managed to be monitored and which has lagged behind in the event of price increases.

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Dashboard

Priceindx dashboard is customizable to your needs and you can choose from overall relevant views, alerts or filter down to category or view, graphs, analysis and forecasts, all downloadable for deeper processing.

Priceindx has developed a full-service offering that provides online retailers with competitor monitoring, assortment strategies, dynamic pricing and business strategy.

The retailer's complete product range (including private labels) is matched against selected competitors, trading locations and price comparison sites. The result is data-driven insights to analyze competitors, curate assortment and apply dynamic pricing rules based on business strategy.

The business advantage enables controlled growth or profit using smart rules based on a variety of assumptions, such as price position, margin, inventory turnover, promotions, popularity ranking, cart starters. With historical data, AI rules based on machine learning are implemented.

If you would like to discuss the range or pricing strategies, or get a free trial period, contact us.

Read article at netthandel.no

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