Merchandising Combo U.S. SMART PHONE USERS What sources of data contribute to pricing intelligence? WHAT FACTORS ARE DRIVING THE CHANGE? Rise of smartphone use and price checking apps like Amazon Price Check, Google Shopper, Shop Savvy, Red Laser make it incredibly easy to price compare. Competitive monitoring helps retailers stay on top of price changes in the market and react accordingly. Other strategies retailers are using include: Amazon changes prices every 10 minutes or more! Best Buy and Walmart implement price changes over 50,000 times per month. Competition Loss-leaders such as Walmart and Amazon use dynamic pricing to set the bar low and capture market share. Consumers: of retailers are already using price intelligence software intend on doing it in the next 12 months intend to do it in the next 6 months web-crawlers third party sources competitive flyers use mystery shoppers internal aggregators 22 7 29 64.5% 51.6% 35.5% 35.5% 35.5% 22.6% 6.5% 6.5% Price Right the First Time Online and In-store In-store Price Matching Capability Customer-specific Promotions Selling Exclusives and Private Label Dynamic Pricing Arm Retail Associates with Real-time Competitive Price Intelligence No Response to Showrooming Focus Only on Online Price Matching Dynamic pricing impacts: Profit Margins Customer Satisfaction Brand Image Choose A Solution Type 46.7% 56.7% 20% 43.3% 10% HOW ARE RETAILERS KEEPING UP? WHY USE PRICING INTELLIGENCE? HOW TO IMPLEMENT A DYNAMIC PRICING STRATEGY % % % competitive pressure average margin geographic location supply of product time basement price ceiling price sales channel market share customer segment inventory turn loss leader How to Stay Competitive Modern Day Price Wars: Users are projected to reach 178 million, and account for 54% of all mobile users by 2015! 73.3% 53.3% 46.7% 46.7% 50% 43.3% 40% 36.7% 23.3% 26.7% 33.3% 33.3% Determine the Components That Should be Factored into the Price Changes. Decide on the Level of Automation You Want Decide Who Will Manage Price Changes With over 30% of retailers planning on implementing pricing tools in the next year... Are you risking getting left behind the competition? Those surveyed rated these as the most important attributes: of retailers use a hybrid approach: automated technology and manual price changes 71% Decide on Frequency of Price Changes. How Frequently Should Prices be Enabled to Change? Types of Solutions Business’ Use for Dynamic Pricing 13.3% 13.3% 10% 6.7% 26.7% 3.3% Weekly 26.7% Daily Real-time More than once a day 2-4 hours Within the hour Monthly Conversions Competitive Advantage Sales Other Internally Built 16.7% 6.7% 36.7% Packaged Software These tools allow retailers to: 40 of retailers plan to use a cloud or SaaS solution. % Retailers generally agree that real-time or daily price changes are ideal! Source: RIS 2011 2012 2013 2014 2015 180 160 140 120 100 80 million Hit company sales goals Obtain margin goals Ensure they are within a pre-set range of their competitors’ prices Frequent price changes mean retailers need to respond to the competition faster than ever. As a result, the use of competitive price monitoring and dynamic pricing tools are on the rise. 27% 10% 53% Contact us for more information about WisePricer WisePricer is a full-featured pricing engine that monitors, analyzes and reprices retail products in real-time. Marketing
Modern Day Price Wars: How to Stay Competitive
Dec 18, 2014
Pricing wars aren't new, but they're becoming increasingly technology driven. The largest players in the industry are changing prices as often as every 10 minutes! Consumers are also getting savvier and with the ease of price comparison, retailers must constantly update prices to stay competitive. As a result, the use of competitive monitoring tools and dynamic pricing strategies are on the rise. This infographic outlines what's driving the change, why retailers are employing such technologies, and tips for successful implementation.
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Merchandising
Combo
U.S. SMART PHONE USERS
What sources of data contribute to pricing intelligence?
WHAT FACTORS ARE DRIVING THE CHANGE?
Rise of smartphone use and price checking apps like Amazon Price Check, Google Shopper,Shop Savvy, Red Laser make it incredibly easy to price compare.
Competitive monitoring helps retailers stay on top of price changes in the market and react accordingly.
Other strategies retailers are using include:
Amazon changesprices every 10minutes or more!
Best Buy andWalmart implementprice changesover 50,000 timesper month.
Competition Loss-leaders such as Walmart and Amazon use dynamic pricing to setthe bar low and capture market share.
Consumers:
of retailers are already using price intelligence software
intend on doing itin the next 12 months
intend to do it inthe next 6 months
web-crawlersthird party sources competitive flyersuse mystery shoppers internal aggregators
227 29
64.5%
51.6%
35.5%
35.5%
35.5%
22.6%
6.5%
6.5%
Price Right the FirstTime Online and In-store
In-store Price Matching Capability
Customer-specific Promotions
Selling Exclusives and Private Label
Dynamic Pricing
Arm Retail Associates with Real-timeCompetitive Price Intelligence
No Response to Showrooming
Focus Only on Online Price Matching
Dynamic pricing impacts:
Profit Margins
CustomerSatisfaction
Brand Image
Choose A Solution Type
46.7% 56.7% 20% 43.3% 10%
HOW ARE RETAILERS KEEPING UP?
WHY USE PRICING INTELLIGENCE?
HOW TO IMPLEMENT A DYNAMIC PRICING STRATEGY
%
%
%
competitivepressure
averagemargin
geographiclocation
supply ofproduct
time basementprice
ceilingprice
saleschannel
marketshare
customersegment
inventoryturn
lossleader
How to Stay CompetitiveModern Day Price Wars:
Users are projected to reach 178 million,and account for 54% of all mobile users by 2015!
73.3% 53.3%
46.7%
46.7% 50%
43.3%40%
36.7%23.3%
26.7%
33.3% 33.3%
Determine the Components That Shouldbe Factored into the Price Changes.
Decide on the Level ofAutomation You Want
Decide Who Will ManagePrice Changes
With over 30% of retailers planning on implementingpricing tools in the next year...Are you risking getting left behind the competition?
Those surveyed rated these as the most important attributes:
of retailers use a hybrid approach: automated technology andmanual price changes
71%
Decide on Frequency of Price Changes.
How Frequently Should Pricesbe Enabled to Change?
Types of Solutions Business’Use for Dynamic Pricing
13.3%
13.3%
10%
6.7%
26.7%
3.3%
Weekly
26.7%Daily
Real-time
More thanonce a day
2-4 hours
Within the hourMonthly
Conversions CompetitiveAdvantage
Sales
Other
Internally Built
16.7% 6.7%
36.7% PackagedSoftware
These tools allow retailers to:
40 of retailers plan to usea cloud or SaaS solution.
%Retailers generally agree that real-timeor daily price changes are ideal!
Source: RIS
2011 2012 2013 2014 2015
180
160
140
120
100
80million
Hit company sales goals
Obtain margin goals
Ensure they are withina pre-set range of
their competitors’ prices
Frequent price changes meanretailers need to respond to thecompetition faster than ever.As a result, the use ofcompetitive price monitoringand dynamic pricing toolsare on the rise.
27%
10%
53%
Contact us for more information about WisePricer
WisePricer is a full-featured pricing engine that monitors,
analyzes and reprices retail products in real-time.
Marketing
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