There are no absolute terms to set Dynamic Pricing cost, as it will change according to the needs and characteristics of your business, such as the number of markets you want to control, the size of your company or the number of products to be analyzed. The willingness to pay will vary according to the demands you make on the software.
Advantages of Dynamic Pricing
The first thing you need to know is how the dynamic pricing tool works. This software allows you to modify the prices of the products you compete in the market according to a process of rules established by you. You can decide whether the price suggestions fit your repricing criteria, taking into account the state of the market and competitors’ pricing.
The first step in the use of Dynamic Pricing software is to provide the module with the necessary information to start working. You can share your catalog from an excel or .csv file. After that, you will have to choose your competitors. Once you have chosen your products and the competitors, the application will proceed to make connections to link those identical or very similar products between your store and the competition. These connections will be made in three different ways:
- Automatic: They are made when the identification codes (EAN) coincide. These connections will be made instantly.
- Semi-automatic: They are made when the labeling code cannot be found on the competitors’ products. Then, the software will link items according to the level of resemblance, which can be the similarity of title, photographic similarities or by references such as the manufacturer’s code. The system will suggest the links but you must accept them to add the competing product to your list.
- Manual: To register a rival product yourself, you must copy the url from the page of the product and paste it where the application tells you to.
The main advantage of using tools like Dynamic Pricing is all the valuable time and money saved in the process. To manage, compile, analyze and display the information you would need a large team, since the information about the products changes every so often. All this work force and money you will save by using this software can be dedicated to improve the competitiveness of your products, go for advertising campaigns and compete against the higher prices of your rivals.
Dynamic Pricing Strategies
Thanks to the dynamic pricing software you will be able to set the prices of your goods or products without any fear of deteriorating the precious profit margin. With the knowledge acquired through the use of the application you will be able to set prices based on different factors, such as the market or the competition.
Looking at supply and demand is basic when designing any type of strategy. Sometimes when you see a high demand, you can raise your prices, which is known as surge pricing. Another valid dynamic pricing strategy is to set prices based on the competition. Thanks to the tool you will not get into a price war, since the profit margin will prevail when determining a price.