Every customer likes to buy at lower prices, but pricing in general is one of the most important decisions a company can make, especially when it comes to maximizing sales and achieving a high level of customer success. But what if you can achieve all these goals mentioned above?
Let’s start off with a basic definition of benchmarking :
Benchmarking or market pricing is a strategy that helps you understand not only your pricing structure but also describe how your brand is different from its competitors by completing a full pricing analysis. By knowing your pricing and your situation in the market, you put your business in a position where customers will want to purchase and pay for your products.
And now that the ecosystem of e-commerce has seen a large extension of price intelligence, how can you achieve this process? You need to go beyond the prices and consider other competitive factors for your benchmarking, for example you can simply start by setting flexible prices, this step will allow your products to reflect the situation of the market, and compete with other companies.
The second step is to use a price monitoring software, this will give you a quick market perspective, you can track in real-time your competitor prices and you can also compare similar products that your competitors already own .
How can you optimize the price of your products ?
Benchmarking and price monitoring softwares will allow your business to quick automate data of the current market situation, this will help you save time and money, and consequently optimize the prices of your products.
You can take one step ahead on your benchmarking process by decreasing the price of your goods and services if one of your products is likely to be the only one on the market, this also means in terms of competition that as long as the price of your product goes down, consumers will demand more and less suppliers will enter the market.
Thinking back on what has been said before, you can use price optimization to target a certain period of time depending on which period your product will be sold. So what you can do is set a “period ” type pricing strategy, either for a weekend or for certain days. You can increase or decrease your prices based on customers’ demand.
To sum up, price benchmarking will help you not only to identify how much they are willing to pay, but also helps you monitor your prices in a more strategic way.
If you think that your business needs a competitive benchmarking : Netrivals dynamic pricing is what you need.