Announcing a price increase can be difficult for business owners. This is because there are many fears associated with how customers will react to a sudden increase in prices. Many businesses feel that customers will not be ready or receptive to new price changes, causing sales to plummet. But what do you do when you need to increase your prices and also maintain your customers?
Here are 5 tips to help you navigate announcing a price increase to your customers. Continue reading »
You’ve found the one: the pricing tool that will change everything. You know it will help you better manage price lists, set optimized prices, and spend less time on manual tasks. It’s customizable and easy to use.
But there’s one big step you need to take before you can start implementing it: you need to convince your boss, team, colleagues, and/or other decision-makers it’s the right pricing tool for your company.
You need more than just budget approval, you need a fast and easy adoption so you can start seeing better margins and ROI sooner.
In this guide, we’ll show you how to make your case for a pricing software and prove it’s worth the investment, both if you’re just getting started with a pricing solution or you’re switching from a different pricing tool. Continue reading »
One of the biggest challenges that distributed teams and isolated pricing professionals face during a crisis like COVID-19 is staying healthy, engaged, and productive.
If you now find yourself setting prices from home or managing others in a remote work environment for the first time, it can help to remember that in a vibrant, data-driven profession like pricing, nothing ever stays the same for very long.
So whether you operate as a one-person pricing tribe, or you’re part of an established pricing team, consider this your opportunity to master a new price from home strategy and discover some of the remote working tools that will keep you productive. Continue reading »
Considering the wealth of information available online, it’s easier than ever to make informed purchasing decisions. On the flip side, it’s just as easy to feel like you’re drowning in wave after wave of value propositions and unique selling points when shopping for a PO&M solution.
Knowing the features you need and the prices that suit you is great, while understanding how to choose a PO&M tool that will give you the best possible price advantage is essential. On the other hand, understanding the things to avoid can often be just as helpful, especially if you have too many candidates to choose from.
To help you navigate through the crowded market of price optimization & management tools and software, we cover the six biggest signs that a PO&M software would be more of a problem than a solution.
Continue reading »
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 »
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:
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.
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 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:
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).
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.
