Radu Marin, Author at PriceEdge Blog

The benefits of a PO&M software for your business

January 20, 2020 in Blog

From tweaking your pricing to running large price revisions, every aspect of your pricing process contributes to the overall success of your business. While this means there are plenty of opportunities to improve and grow, it also means that there is a lot to keep track of, which is why you need a Price Optimization & Management (PO&M) system. Here are the benefits of PO&M for your business and your pricing team.

And then there’s everything outside the business.

No organization works in isolation, and staying in tune with the market and industry you operate in is just as important as knowing what’s going on internally.

You have a knack for spotting new opportunities, but if you want to grow your business and build your team, you need visibility across your entire business and every member of your organization needs to be aligned.

There’s an entire industry of software tools designed to help you keep your finger on the pulse of your business, and it goes by the name of Price Optimization & Management (PO&M) software. Continue reading »

Psychological Tricks to Use in eCommerce Pricing

December 11, 2019 in Blog

This shouldn’t come as a surprise, but we humans aren’t always rational creatures. Sometimes we make choices based on sound reasoning and logic, and sometimes based on our emotions and our “gut feeling”.

When pricers set prices assuming an “economic” model customer (using rational choice theory), they risk missing out on the best pricing strategies.

Shoppers don’t always carefully consider the quality of a product, its relationship to other products on the market, or the correlation between its price and its actual value. Sometimes they make purchasing decisions based on whether a product is made to look like a great deal, or whether it seems like it might sell out quickly.

This unpredictability can complicate the work of setting prices in eCommerce stores. Fortunately for eCommerce marketers, there are several psychological “tricks”–we prefer to think of them as good strategies–that can make customers more receptive to certain prices.

Here are some of our favorite strategies:

Advantages of PO&M software: Three steps to help you find the right one

December 5, 2019 in Blog

Convinced that adopting PO&M software is the next step on your journey to pricing excellence? Then your first task is to figure out which one will work best for you and your pricing team, and then to evaluate the benefits of using a PO&M software.

There are hundreds of tools listed in Capterra’s price optimization software directory alone, not to mention on the market as a whole. The available features range from simple price data management to full-blown price optimizations & process automation.

The three steps outlined below will help point you in the right direction so you can start drawing up a list of PO&M options and their advantages that will lift you and your team up rather than weighing you down.

eCommerce pricing: How to stay competitive without loosing profits

November 13, 2019 in Blog

Profit is the driving force behind any retail business! The bottom line of your business is to grow your bottom line. You need to make money in order to keep your business afloat, but you also do not want to price yourself out of the marketplace by pricing your merchandise too high.

In today’s retail world, eCommerce accounts for over $3 trillion in overall sales and you can’t afford to pass up your piece of the profit pie! Digital technology now makes it possible for customers to compare prices on the items they want at many different retailers in seconds, and most customers will purchase the item they want from the retailer who is offering the most competitive price.

So, how do you ensure you are pricing your merchandise to sell?

What is Price Optimization & Management (PO&M)?

November 10, 2019 in Blog

What is Price Optimization & Management and how should you choose the right PO&M solution for your business?

‘Price Optimization & Management’ or ‘PO&M’ for short, refers to the technology and processes that an organization uses to efficiently manage and optimize the price of its products and services, both external and internal, including actions such as:

Dynamic Pricing & AI: The Future of e-Commerce

August 14, 2019 in Blog

Apart from marketing, managing inventory, and taking care of logistics, as an online retailer, you must also determine the best price point for your products. This can be a daunting task because calculating your prices and staying on top of managing supplier costs takes time – time you could be spending performing other tasks for your business.

Not to mention the long hours you spend at the computer analyzing competitors’ pricing models and determining your customers’ perceived value of the product. But there are advanced strategies you can use to make pricing your products easier and more efficient: dynamic pricing and artificial intelligence (AI).

What is Dynamic Pricing?

The concept of dynamic pricing is to offer the right price to the right customer, for the right product, at the right time to increase your business’s revenue and profit.

6 E-Commerce Pricing Strategies to Help You Sell More

June 6, 2019 in Blog

Your e-commerce pricing strategy has a direct impact on how well your online business performs. There are so many things to consider when it comes to pricing such as the cost of your products or services, your customer’s needs, and your competition.

E-commerce businesses often struggle with determining the right prices for their business. They want to price their offerings low enough that customers will purchase, but also high enough that they can make a reasonable profit. For this reason, we’re going to show you 6 e-commerce pricing strategies to help you sell more with your e-commerce business.

How to use willingness-to-pay in pricing?

September 20, 2018 in Blog

Willingness to pay is the maximum amount a customer is willing to spend on a product or service. Being aware of your customers willingness-to-pay can be the key to a successful price strategy. We will focus here on using willingness to pay in a B2B context.

Why You Need to Start with Your Pricing Objectives

May 15, 2018 in Blog

Learn here why pricing objectives are important, and what type of objectives are most relevant in today’s market.

Creating a pricing strategy is never an easy task. For both B2B and B2C markets, first be clear on what is your pricing “destination”. That should translate into clear, measurable business objectives. Think in terms of: “increase market share by 10%” or “increase customer satisfaction by 20%“. Sync the pricing destination with the overall business objectives of the company as pricing objectives need to work towards the business’s plans for the future. Of course, depending on the specific needs of your company, you can have multiple objectives or even change them along the way.

When choosing your pricing objectives, keep in mind that pricing is intertwined with the financial, sales, and marketing departments. Hence, your pricing objectives should relate to all 3 of these key aspects:
Continue reading »

How to get started with dynamic pricing

March 28, 2018 in Blog

What happened lately that made dynamic pricing such a priority? Well, the answer is easy. It’s been Amazon.

We must recognize Amazon as the driving force behind dynamic pricing. Their adaptability to a vast and diverse inventory has set a benchmark for competitors to follow in their footsteps.