Retail pricing and pricing management
Recently, on the one hand, price management is gaining momentum as one of the most powerful tactics for profit in the conditions of market instability. Traditional approaches to price management, such as lowering them, are already ineffective. Now the retailer is forced to take more advantage of the market and improve strategic investment.
On the other hand, with increasing sales in the store, retailers need to manage and optimize prices in each channel, region, store, and all this taking into account the constant changes in trends among consumers, suppliers and competitors. Consulting for Retail's experience and Symphony GOLD tools allow retailers to define and implement policies, as well as adjust prices on any channel.
What causes retailers the most difficulty in pricing?
- Huge pressure from discounters and e-retailers, a decrease in customer base
- Margin below expectations for different regions
- The difficulty of managing prices and optimizing them for different channels/regions/stores
- How to match the regular and promotional prices of competitors?
- Planning price changes in stores and analyzing the impact of price decisions, selling prices directly in stores is a complex and inefficient process
- Insufficiency of people for the effective implementation and implementation of pricing policies
- Lack of formalization of pricing policies
- Is it possible to reduce dependence on regular promotions?
- Limiting the number of price changes at each outlet per day.
The main goals in the implementation of tools for managing and optimizing pricing
Recently, pricing optimization tools have become critical retailer tools to help adapt to a changing market and competition. This trend is confirmed, among other things, by increasing volumes of price changes from year to year.
As a result, the main goals of the retailer in optimizing pricing are:
- Profit maximization
- Increase in market share
Realities require flexibility and operational adaptation, which shapes the retailer’s future when setting prices - retailers are shifting investments from creating uniform pricing policies to more personalized pricing models.
3 BASIC ADVANTAGES
5-20%
Retailer Revenue Increase
1-1,5
Return on investment over a period of years
5-10%
Sales growth
Ensuring accurate, coordinated pricing to maintain loyalty
Pricing each product for each channel is a challenge. Pricing errors or conflicts put customer loyalty at risk and affect sales. We provide retailers with powerful solutions for price management - automation of policy compliance and the ability to update in real time based on custom pricing rules.
We solve these problems, and not only:
- Correct and coordinated management of product prices in different channels is a difficult task. Pricing errors and conflicts jeopardize customer loyalty and affect business results.
- Automatic filtering, calculation, ranking and planning of price changes in stores reduces operating costs.
- Automation of the process of calculating and planning prices leads to a reduction in the number of errors, an increase in the speed of implementation of the required changes, and lower costs.
Maximize sales and profit with the best price
Price optimization is an art and a science. Retailers make the best price decisions considering all factors, such as customer behavior, projected demand, assortment, competition, and more. We help retailers optimize prices by analyzing the impact of price changes on several scenarios and various business goals, to determine the ideal pricing plan for a group of products and to provide transparency of pricing across the organization.
Implementation of pricing strategies for all retail channels
Price optimization is valuable in itself, but retailers achieve maximum benefits when price optimization is synchronized across all sales channels. When using, in combination with other solutions on the retail platform of tools offered by Consulting for Retail, as well as in combination with your execution system, the retailer will have full control over the management and implementation of the optimized pricing policy across all channelsю
The solution from Consulting for Retail on pricing is:
- a modern solution for PRICING AND OPTIMIZATION POLICIES
- based on an advanced engine of business rules and optimization algorithms as part of a retailer’s unified business strategy
- with the ability to simulate different scenarios when DETERMINING THE BEST PRICE FOR GOODS for each channel, cluster or individual store
The Consulting for Retail team has over 15 years of experience in implementing IT solutions for automating the business of retail chains. We offer high-quality business consulting services, project management and customer support throughout the entire life of the solutions.
The basic functionality of the solution, supporting the pricing policy, is
DECISION MAKING SUPPORT
- The ability to view in a single system all the information related to pricing at the required level (cost, competitor prices, price and sales history).
- The ability to determine the basic logic of price updates (for example, automatic price equalization of similar products, prices for sets).
GENERAL CONFORMITY OF POLICIES AND PRICE LISTS
- Control of the resulting price lists (for example, prices for identical goods of different sizes).
- Alerts in case of violation of price restrictions (for example, the minimum margin category, the minimum difference % with competitors)
CENTRALIZED CONTROL AND TRANSPARENCY OF STORE PRICES
- Approving store prices or determining a price range for stores
- Planning price updates for stores (for example, dividing 1000 price updates into 4 sets of 250 updates sold according to the schedule)
- Centralized store price monitoring
As a result of applying a pricing management solution to a company, the retailer gets such benefits as:
- Decrease in time for planning and implementation of pricing
- Profitability Improvement
- Use of uniform rules and pricing policies throughout the company (transparency of pricing rules)
- Centralized management of pricing rules taking into account all available information with the ability to assign retail prices by the store itself for part of the range
- Building an optimal pricing model based on competitor prices and price elasticity of goods
- Full control by the central office of prices set by stores
- Quick adaptation to competitor prices
Consulting for Retail offers comprehensive retail solutions. To learn more about automation tools for supply chain management, warehouse automation and replenishment, inventory management and operations in each retail store, write to [email protected] or fill out the form below.