Retail Pricing Strategies

Retail

Smart Retail = Smart Pricing

Recent events including the Covid-19 pandemic, war outbreaks, and interruptions in supply chains, have led to unforeseen problems in the retail market. Increasing price changes are putting pressure on consumers and the market situation makes it difficult for retailers to protect their margins. The inflation rates are at all-time high, and the negative effects on cost may worsen as purchase prices are rising sharply. Despite this poor outlook, what can retailers do to ensure profitability and growth? 

First and foremost, a competitive pricing strategy that reflects the business strategy is one of the most important keys to success. Properly designed, this can be one of your most profitable investments. A winning pricing strategy takes the whole product assortment into consideration, with product prices based on customer value and customers’ willingness to pay. When implemented correctly, an improved pricing strategy provides 3-5% in profit improvement annually.

So how do you price large assortments that are based on customer value? And how do you create business results when an increasing portion of trade takes place online compared to in stores? How do you create efficiency and reduce administration while increasing sales and profitability?

The most important thing if you want to be the leader in your market is to view the pricing from the customer’s perspective. It is the fundamental rule for creating optimal conditions for long-term growth and continuous improvement in profitability. PriceGain has developed a variety of methods to help retailers understand what creates value for the customer and capture that value by turning the value into competitive prices. At PriceGain, we help our retail customers develop a solid pricing platform and create an optimal channel strategy mix that helps our customers reach their strategic objectives. We also help retailers get insights into how different types of campaigns should be carried out to meet targets and how to provide discounts and offers to consumers that don’t erode margins.

Retailers often struggle with a high level of administration due to an abundance of products and customers. This makes the price-setting process complex and implies a risk of unprofitable prices over a long period of time. The administrative burden often requires an advanced pricing system that optimizes prices and enables the retailer to have control over the pricing process. PriceGain offers a smart pricing software, Pricise, but acts as an independent advisor. PriceGain helps our clients in the procurement process of new pricing systems or specifying requirements on existing business/pricing systems.

You can read more about some of our previous projects here and below. To find out how we can help you improve business results, contact one of our pricing experts.

Customer cases – Retail

You can read more about some of our previous projects here and below. To find out how we can help you improve business results, contact one of our pricing experts.