At GrowByData, we have been listening to customers and continuing to enhance our price intelligence software. The market is saturated with price intelligence tools – from the cheap to the expensive, from the completely automated to those that are completely manual.
If you are a manufacturer and sell a few products, you may not urgently need a price intelligence software, although it is valuable to understand where the market is headed. However, if you a retailer selling over 1000 SKUs (even 100 if you are in a competitive yet high margin category), you definitely need a price intelligence software. Now, you may be selling products that don’t have children SKUs. In this case, market solutions may suffice. However, if you are selling products with child SKU (or variants), your repricer will throw errors and you will struggle to convert.
You need competitive pricing tools that match at a variant level.
Retailers in the apparel category are particularly challenged by many price intelligence tools. Take this example – you sell a Fruit of the Loom T-Shirt Size Large in packs of 2. This costs $21.97. The same set for a size “Medium” costs $21.92. If you select a different color or other combinations like size, price is different. So you want your competitive price intelligence solution to tell you exactly how much a competitor is selling the same SKU Fruit of the Loom T-Shirt Size Large in packs of 2. If your repricer tool providers prices on a product with different attributes, you don’t have the apple to apple match and thus you won’t be repricing correctly.
What are the 3 problems today with Competitive Price Intelligence Software?
1. We found that many solutions in the competitive price intelligence space don’t provide this level of precision when they make a suggestion. They may suggest a price change, however, it may be for 1 T-Shirt vs 2 as in the example above. As a result of this incorrect competitive price, merchandising managers get frustrated.w
2. Pricing analysts worry that pricing is a race to the bottom with the reliane on automated price intelligence tools. With repricers constantly changing prices, the fear is that margins will keep dropping and the retailer will ultimately lose money. Thus, retailers are seeking an intelligent repricer that adds intelligent rules to allow the retailer to make money and not lose money. Retailers know that other datasets like advertizing, stock, trends, and others are required to make smart pricing.
3. Merchandising managers worry about the effort required to act on the insight. Merchandising Managers are busy and resource-strapped required to do more with less budget. Even if the pricing insights are precise, if the Merchandising Manager must assign a resource to make the price changes, it is extra cost. This adds to the friction. They are seeking precise insights that are easy to act across their channels.
What are 5 ways Price Intelligence Software should solve current problems with Price Intelligence?
1. Solution vendors will precisely match at SKU level to offer apple to apple comparison with competitive SKUs.
2. Results will be human verification as needed – especially when product content is limited and different.
3. Price changes will account for data like competitive cluster, advertising, price elasticity and seasonality.
4. Pricing changes will be automated to ecommerce carts, marketplaces and advertising channels.
5. Insights will be integrated with other workflow tools that retailers use like Product Feeds and Product Information Manager.