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. Table of Contents: ShowHide \t \t \tWhat is Price Intelligence? \tFeatures of Price Intelligence \tImportance of Price Intelligence \tPrice Intelligence Process \tInsights & Use Cases of Price Intelligence \tPricing Strategies \tChallenges of Price Intelligence \tWhat is Dynamic Pricing \tConclusion 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. \tPricing 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. \tIt provides holistic insights into the price elasticity and demand of the products. \tWith 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. \tTo 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. More Details on 3 Capabilities required ina Competitive Price Intelligence Tool 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. \tIdentify your competitors. Identifying your competitors is crucial not only for pricing strategies but also for marketing strategies. \tAcquire and Scrap pricing data from these competitors. After identifying your competitors, it is time to acquire real-time pricing data on these competitors. \tAnalyze the data. Look for any patterns in your competitors' pricing habits & practices and get insights into your competition and the competitive landscape. \tMake 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. More Details on Competitively Priced Products on Google Product Ads Agency Partner Drives Retail Client’s Revenue Growth to 26% increased Correlation of Google Trends & Dynamic Pricing in Winter Shoes Price Competition Analysis of Two Sunglasses Retailers in Clusters What is the Best Day Of the Week to Buy Earrings, Necklaces & Rings Online? 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: \tValue-Based Pricing \tPrice Skimming Strategy \tCost Plus Pricing Strategy \tCompetitor-Based Pricing Strategy More Details on How to Price a Product using Price Intelligence Software 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. \tVariant Level Product Matching \tCollecting Pricing Data globally from different platforms \tLarge-scale Data Collection & Monitoring \tConducting Automated Repricing More Details on Four Challenges of Price Intelligence and Dynamic Pricing 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. More Details on Top 5 methods of doing Dynamic Pricing the "Right" Way Dynamic Pricing bags more Revenue when timed right 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.