If getting the right price level in place isn’t hard enough, one thing often lost in the discussion is the impact of the competition. Whilst this makes sense – after all very few organisations have a monopoly – there is a fine line between paranoia and ambivalence when it comes to considering competitive forces in pricing decisions.
Of the challenges faced by brick-and-mortar retailers today, one of the biggest is how to manage their pricing strategy – especially with the rise of price transparency and other price tracking technologies.
Price. It may be the single most important element to impacting a customer’s decision to buy; either online or offline. Add to this the fact that markets are always changing and the need to have the right pricing strategy is more important than ever.
Love it or hate it, the emergence of price transparency has irrevocably altered the competitive landscape. In fact, you’d be hard-pressed to find a market where vendors are able to continue to rely on opacity in their pricing. Read more
From time to time, big companies try to outrun their competitors by enticing customers through one of the most effective ways they know customers respond to – pricing.
Deciding on the optimal pricing strategy for your business can be challenging. Not only do you have to keep your cost and your customers’ purchasing power in mind, but also consider what your competitors are doing. At the end of the day, your competitors are offering the same or similar products and targeting the same customers. If you don’t price your products perfectly, you can lose ground at the first step and as a result, will find it difficult to compete, let alone thrive.
Customers nowadays expect not only personalised experiences, fast and reliable service, but also the best pricing for the products they’re interested in buying. Knowing your customer and what drives their purchasing habits is important.
Everten Online, Kitchenware Online Retailer, spoke to CMO about how they exceed customer’s expectations.
“Being an online store, you lose that face-to-face with customers, and we really try to go the extra mile by helping our customers and giving our customers good advice when they call. We have very knowledgeable customer service team,” he says.