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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:

eCommerce: The Importance of Setting the Right Prices

October 11, 2019 in Blog

Remember the last time you visited your favorite shop? Let’s remember those moments together and see how it relates to e-commerce pricing.

You went into your favorite store, gazing through the stalls briefly, touching a couple of the items for the feel and texture. Suddenly, you found your perfect match. You grab it and place over your body to see if it really looks great on you. You loved the item and the only thing between owning it is the price tag. You find the price tag after a quick search, flip it, and check how much it’s worth.

Yikes!

It costs a lot. It’s not a bargain, it’s not a deal so you give up, and probably leave the shop after similar experiences.

Now, this is a quite common offline shopping story and the example here was mainly for the fashion industry, but if you think that the experience is different in e-commerce you’re wrong! The decision process is way faster than that.

Because in e-commerce pricing, the prices are right there in front of your eyes with the product name, images, and descriptions. Therefore, the e-commerce pricing of any product is one of the most crucial qualifiers when consumers start browsing that product.

Now what?

2019 PriceEdge Retreat

September 30, 2019 in Blog

Two weeks ago, the Stockholm and Bucharest office spent a couple of great days together in Sicily outside Marsala, to work together, reconnect, and plan out our growth plan for the next 12 months. We set up camp in a fantastic Airbnb where we worked, cooked, and shared stories together. As a team, we wanted to celebrate our success, and spend some time away from the everyday hustle, to think about our company vision, and work on strategies for the future.

A retreat with coworkers can test the culture of a company, but for the Price Edge team, it felt more like a family reunion than a company event. We already spend time with each other out of the office, but the benefit of going on a retreat is that it encourages rewarding conversations and collaboration in a new, relaxing environment.

Looking Toward the Future

Our company trip was a roaring success, and we look forward to putting the conversations we had in to work. We’re already looking toward the future with excitement as our team grows quickly to meet the demands we have from our clients.

Company get-togethers are one of the best ways to keep your team engaged and highly motivated. It also helps to bond further between team members while having fun in a different environment.

You can check out some of what we got up in our pictures below.

: Trip to the Erice medieval village for our early arrivals

: Trip to the Erice medieval village for our early arrivals

: Teambuilding in the villa

: Teambuilding in the villa

: Teambuilding in the villa

: Teambuilding in the villa

: Teambuilding in the villa

: Teambuilding in the villa

: Teambuilding in the villa

: Daytrip to Favignana

: Daytrip to Favignana

: Daytrip to Favignana

5 Fatal ECommerce Pricing Mistakes We See People Make

September 19, 2019 in Blog

Anyone who runs or has run any type of an eCommerce business can confirm:

Pricing can be an extremely tricky task to do right.

There are various things that eCommerce businesses need to factor into their pricing such as the value of the product, competition, and current marketing trends.

Unfortunately, many eCommerce businesses underperform because they make pricing mistakes that negatively impact their business. These mistakes result in them creating price wars and losing customers’ trust.

For this reason, we’re going to share with you 5 fatal eCommerce pricing mistakes we see people make in their business. So, you don’t have to do the same mistakes.

Let’s get to it.

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.

4 Key Insights from EPP Monetized, the B2ME Pricing Forum

July 10, 2019 in Blog

EPP Monetized, a gathering of the B2ME pricing community, is one of the latest & greatest events for pricing experts, pricers and pricing software vendors in Europe. In particular, the event gives pricers the opportunity to network and learn from peers, industry leaders and solution providers that can help extend, scale and grow their businesses.

Last week (July 3-5, 2019), parts of the Price Edge marketing & implementation team travelled to Amsterdam and Johan Cruyff Arena to network with and learn from some of the leading pricing experts in the B2ME pricing world at the EPP Monetized Pricing Forum.

Joining over 60 attendees, 30 speakers, and multiple exhibitors at the event, we experienced more than 25 hours of content, and took part in over 20 hours of exhibiting across a three-day period.

Here are our four major takeaways from the conference:
Continue reading »

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 Profitable Could Your Aftermarket Business Become?

May 13, 2019 in Blog

Why implement new pricing strategies? And why even think about investing in a new pricing software? What is the purpose? Let’s be honest, it is quite simple. The purpose is to generate more profit. Period.

Sure, there are other important reasons too. For example, we all know how overpricing can hurt the long-term brand value and customer loyalty. That matters also. But without that pure financial gain, which is found through avoiding setting prices too low, it would be difficult to justify spending resources on implementing new pricing strategies.

The key question, then, is: How large a financial gain could you harvest from your aftermarket? How do you find and implement it? And how can you make that new profit level sustainable over time?

In this article, I will share my thoughts on how to answer these questions. My intention is to share what I have seen and learned during the last ten years as a pricer, a reflection of my own experience of implementing smart aftermarket pricing for multiple B2B and B2B2C companies over the years.

My Top 4 Mistakes in Aftermarket Pricing. Save Yourself Some Pain & Don’t Make Them Yourself.

November 26, 2018 in Blog

Today I would like to share some of the mistakes I have made during my years in aftermarket pricing. I hope that by reading this material, you will be able to avoid as many of them as possible. I guess I’m trying to write the text which would have helped me when I did my first aftermarket pricing project about ten years ago.

To keep it simple, I decided to make a list of criteria which I think are important if a pricing strategy is to last for a long time. I will zoom into attribute-based pricing strategies. The reason is that those usually give the best return but are also the most difficult to manage.

Before we get into this, just a short reminder that when I write “attribute-based pricing strategies”, I refer to price logic, where physical attributes, such as weight, length, power, brand, etc. are used to set the price. In a nutshell, you create groups of similar parts, and in each group you define which attributes should be used. Then you create the price equation based on those attributes. So here it is, the list of what you should try to avoid if you want your pricing strategy to pass the test of time. My hope is that you will be able to avoid most of these mistakes. Enjoy 😊