What is Price Intelligence – The Complete Guide

GrowByData
What is Price Intelligence – The Complete Guide
Devik Balami | December 7, 2022
|READ 8 MIN
what-is-price-intelligence-the-complete-guide

The price of a product is one of the most important considerations in every consumer’s purchasing decision. If you price your product extremely high, you will lose significant sales. Similarly, if you set them extremely low, you will lose valuable profit/revenue that affects the health of your business.

Modern technology has enabled buyers to analyze prices from multiple providers and sellers in real- time. As a brand, retailer, and manufacturer they must set and provide competitive prices to the buyers to win new customers.

This is where pricing intelligence becomes paramount.

What is Price Intelligence?

Price intelligence is the capacity to monitor, track, and analyze market price data, as well as competitors’ prices within your landscape to help you make informed and data-driven pricing decisions.

Understanding market price data and ensuring accurate pricing information is vital as the price of the product is the main determinant of your sales. Since price is always fluctuating, you must constantly analyze the relative price position and keep up with the ongoing changes to incorporate it into a dynamic pricing strategy.

However, this does not mean that you should lower your prices just because a competitor does. Instead, you should gather price intelligence data on competitors to help you make the best decision and gain an edge.

Features of Price Intelligence

Below are some of the best features of Pricing Intelligence and why you should use it to gain an edge against your competitors.

  • Pricing intelligence can provide you with a list of your competitors in your marketplace, their prices with or without shipping, price change history and information, along with product performance.
  • It provides holistic insights into the price elasticity and demand of the products.
  • With pricing intelligence data & insights, you can quote the right price which in turn will not only boost your sales but also generate new customers for you.
  • To better perform on search engine platforms like Google or Bing, you can optimize your product detail page with a correct description, images, keywords, customer reviews and ratings, competitive prices, and product availability.

Now, let’s learn more about the importance of Pricing intelligence for eCommerce, manufacturers, and brands.

Importance of Price Intelligence

Pricing intelligence is important as it determines the sales and profitability of your business. As stated earlier, you must analyze the market price data to better understand your competitive landscape and price/reprice your product accordingly.

As we all know, consumers don’t make purchase decisions right away. They go through different stages of the shopper’s journey before buying a product. This highlights the importance of delivering competitive prices to win the sale and convert today’s smart shoppers into customers.

The biggest marketplaces like Amazon, Walmart, and Target are constantly monitoring the prices of products in real-time and dynamically repricing to stay ahead of the competition.

Pricing Intelligence software brands, manufacturers, retailers, and agencies to track competitor prices, and proactively optimize their pricing strategy including repricing, dynamic pricing, and even monitoring Minimum advertised price.

The best pricing tools are capable of providing pricing data along with insights across marketplaces, direct-to-consumer sites, and even SERP components.

Process of Price Intelligence

The Price Intelligence process is quite simple.

  • Identify your competitors.
    Identifying your competitors is crucial not only for pricing strategies but also for marketing strategies.
  • Acquire and Scrap pricing data from these competitors.
    After identifying your competitors, it is time to acquire real-time pricing data on these competitors.
  • Analyze the data.
    Look for any patterns in your competitors’ pricing habits & practices and get insights into your competition and the competitive landscape.
  • Make data-driven decisions
    Use the insights to make informed decisions on your pricing strategies.

Also, Read the Article on

Manufacturers and Brands

eCommerce

Insights & Use Cases of Price Intelligence

Here is the list of insights and use cases of GrowByData Pricing Intelligence across various categories.

What is a Pricing Strategy?

A pricing strategy is a method of determining the most cost-effective price for a product. These strategies allow Manufacturers, Brands, and retailers to set prices for their products & services effectively with statistical data and market trends.

Choosing the appropriate pricing strategy is crucial. Pricing strategies need to account for various internal and external factors that influence the price. Internal factors like revenue, goal, target audience, brand position, product attribute, and marketing objectives. And external factors such as customer demand, competitive price, and overall market trends.

There are various pricing strategies as mentioned below:

  • Value-Based Pricing
  • Price Skimming Strategy
  • Cost Plus Pricing Strategy
  • Competitor-Based Pricing Strategy

Challenges of Price Intelligence

As the competition in large-scale markets and industries increases, pricing intelligence faces four main challenges to provide the desired solution and insights to brands, manufacturers, retailers, and agencies.

  • Variant Level Product Matching
  • Collecting Pricing Data globally from different platforms
  • Large-scale Data Collection & Monitoring
  • Conducting Automated Repricing

What is Dynamic Pricing?

Dynamic Pricing is one of the pricing strategies that businesses are using to sell to various groups of customers. It deals with a strategy based on supply and demand focusing on demand aspects. Thus, it is also referred to as demand pricing or time-based pricing.

Dynamic Pricing is an under-utilized concept. However, it provides tremendous pricing advantages to a business if it is done the right way. Unlike static pricing strategy, Dynamic Pricing maximizes profit by operating at different price points per the market demands. This strategy is popular in various industries such as hospitality, transportation, professional sports, retail, and eCommerce.

Conclusion

With such tools, you can easily get ahead in the competitive landscape. With the GrowByData pricing intelligence, brands, manufacturers, eCommerce, and agencies can easily find their competitors, and track their highly performing prices, in real-time.

With GrowByData pricing solutions, you can easily make data-informed decisions, stay competitive, track and monitor competitive prices, repricing rules, and much more with our Dashboard.