Shoppers who buy online through e-commerce websites have become much more advanced as compared to earlier. They now have an option to choose the best options from hundreds of retailers. Not only wanting the best quality products, but also something that's not too heavy on their pockets. Shoppers use tools such as google shopping to grab best deals from those retailers which provides them the best discounts, in addition to looking for the trusted and popular websites.
Competition is fierce in retail. Pricing is used by retailers to swing the situation in their favour. Now, since we are talking about having the competition amongst the retailers so let us look at the term competitive pricing.
Competitive pricing is a pricing strategy that uses competitor's prices as a benchmark to set your own prices.
Tracking competitor's pricing manually is a tough task, because of the volume of products and the speed at which everything constantly changes. What's crucial here is to be able to map your products with the exact same or similar products on competitor websites. This apples-to-apples comparison is important because this is exactly hw shoppers are looking at you!
Advantages of competitive pricing
Better positioning of the business
Your brand will be associated with high quality products and service, coupled with great value. Shoppers look up to brands they can trust.
Stable customer base
Competitive pricing strategies help keep the existing customers content and always coming back to you. Also helps driving more new customers to purchase from their websites, gaining a much stable and growing customer base.
Maximise revenue and profits
With a good brand position and by ensuring you do not miss out on sale opportunities, you will see a positive impact on your revenue and profit margins.
When to adopt competitive pricing strategy?
Firstly, every single time! Because shoppers keep an eye constantly for any price markdowns or sale, but they also buy whenever they feel like buying. That means 24x7. So, real-time price tracking is the most essential thing to step up their game.
Secondly, the time when there are price markdowns or when there is a sale on competitor's website. It can become awfully difficult to track prices of each and every product manually.
If you're a retailer and interested in competitive pricing, do reach out to us at [email protected]