To have the most successful product pricing strategies, you need to consider several things. We wrote a blog post on “Which commercial perspectives should we consider when planning pricing strategies?” Answering these questions lets you work on your product assortment in PriceShape, and you will gain an advanced and priceless overview of your competitive landscape and price positions in the market.
This blog post will focus on how we can dive even deeper into other data sources that are beneficial and important to study so that you can take full advantage and be successful when using the PriceShape platform. We will focus on the “triangle of success,” which consists of performance, inventory, and competitive data.
Inventory data
Inventory data such as stock status, quantity, and location are essential attributes to include in your primary feed*, as these can help you create a better structure in the price strategies, our assortment control, and how to utilize the supplemented data.
Attributes such as product status, life cycle, and other vital parameters listed below are often forgotten. It is crucial to include this specific data since it can help you set a better and more beneficial strategy. Moreover, it can also help you as a gatekeeper for your assortment, letting you decide with your inventory in focus.
Attributes that could be relevant include:
- Stock Status /Stock Quantity
- Warehouse Location / Dropshipping
- Product Life Cycle / Product Status
*If your inventory data is derived from a source other than your CMS system with your primary feed, we may add this source as a subfeed. Ask your Customer Success Manager for more information.
Performance Data
Integrating your Performance Data is another important data source, letting you track the performance of your products. This allows you to oversee the bestselling products, which products have a higher conversion rate than others, and what products attract many visitors without ending up in a sale. In other words, this data can be used to make our strategies and assortment analysis much more performance-oriented.
We have listed the fields that can be tracked within PriceShape:
Page viewed: The amount of pageviews
Product added to cart: The number of times a product was added to the card
Product sold: The amount of product sold
Unique product sales: The number of times a product was sold
How to integrate sales data (Link to help center). OBS can only be accessed by customers.
Competitive data
Competitive data is the last of the three elements in the triangle; it is not something you should include in the platform. We will provide you with a full market overview of your competitor's prices and the market situation. This is a key foundation for setting the right pricing strategy.
Optimal Data & The Triangle of Success
When the data sources are implemented in PriceShape, you can work with your products on a more informed foundation and make valid decisions.
Imagine seeing products with low sales, high stock quantity, and a late product life cycle and applying a “Slow Mover” tag and strategy to them in PriceShape. This will help ensure that you don’t end up with inventory you can’t sell because of a price that is too high or a decrease in demand. The situation could also be the opposite: you find a product that is a high-profit bestseller and can see that you’re the only reseller on the market. With this product, you can increase the price and optimize your profit.
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To sum it up
Combining the three data sources will help you succeed in setting up your strategies and analyzing your assortment. The more data you include in the platform, the better data we can deliver back.
Reach out to your Customer Success Manager to learn more and get inspired, or book a meeting with one of our product specialists to try our features for a free trial.
