Increase your revenue with dynamic pricing
Concrete experiences from our customers show a marked increase in revenue and earnings using dynamic pricing based on competitor data.BOOK A DEMO
Dynamic Pricing in less than 48 hours
PriceShape does the rest
data in a dashboard format
setting up pricing strategies
Online growth increases price focus
Dynamic pricing has been used in the hotel, hospitality and airline industry for many years. The price is continuously adjusted in relation to supply and demand and competitors’ prices so that earnings remain optimized. With the huge growth of online commerce, dynamic pricing has also gained traction in the sale of physical products. The global online retailers in particular, work with advanced dynamic pricing models because it significantly increases conversion rates.
Consumers research prices before making a purchase, so businesses must adapt accordingly. By having dynamic pricing implemented in your online retail business, your pricing is automatically adjusted based on data on your competitors’ prices combined with your pricing strategies. Regardless of the size of your online retail business, dynamic pricing can be leveraged to grow your business and increase your bottom line profits.
The best price is not always the lowest price
The optimal price correlates to the value the customer gets by purchasing from you. If you have a strong brand, an extraordinary service, a large number of stores, cheap delivere, etc. you may be able to ask a higher price than your competitors. By working with competitor monitoring and dynamic pricing, you can optimize prices and earnings based on facts, which is essential in a world where price transparency is constantly increasing.
Effective price monitoring
Price monitoring has always been important in retail. Until now, this was often a manual process necessitating a trip to a competitor’s stores, or by visiting the competitor’s online retail business to get an overview of their prices.
Fully automatic setup
saves time and increases quality
Today, through pricing bots, you can see all your competitors’ prices in real time. Prices are updated automatically, and the data you receive provides unimaginable opportunities to adjust your prices fully automatically or to market your business based on your price position in the market. Businesses save many hours of manual work and the data quality is high, enabling the pricing strategy to be optimized.
Identify and price match relevant competitors
The pricing bots find all the competitors selling your products. However, it is not a given that all competitors selling similar products are relevant for comparison purposes. Perhaps you have physical stores and can provide extra services in the form of in-store pick-up or free returns, so that you only want comparison with other retailers who also have physical stores.
It may also be that the products you sell require more trust from the consumer, and that you only want comparison with other online retail businesses that, as an example, feature the Danish e-mark guarantee. Therefore, it is important to find a system, which can adapt these filters to your specific business needs, and not set general rules for all products and competitors. Your pricing strategies can always be further customised if you wish.
Monitor your own
With a dynamic pricing strategy, you are guaranteed real-time and up-to-date prices based on the best available data. You can choose the competitors on which to base the pricing strategy, what your minimum and maximum profit should be and how much cheaper/more expensive than your competitors you want your prices to be. You choose whether the pricing strategy should be active for a certain period of time, or whether you want to ignore competitors who do not have the item in stock.
Customise pricing strategies based on the seasons
Pricing strategy management solutions can be automated so that they start and end on selected dates. This allows you to plan your own campaigns and offers based on the needs of your business. This can be useful, for example, around Black Friday or during the Christmas season, when the prices of certain products often vary a great deal.
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Dynamic Pricing FAQ:
Dynamic Pricing is a well known term from various industries that have been using this specific product pricing model, for a long time. For Airline companies, concert tickets, etc. it just always made sense to have the prices changing on the fly – meaning they change depending on the availability of the offer.
This model has now arrived at the e-commerce sphere, and we’ve broadly accepted it as a part of the modern martech-stack, for obvious reasons. One of them being the possibility for businesses to change their price-positions based on their competitors prices, inventory-status, and price-history. Doing so will mean more precise and correct price-positions, based on the market situation. That’s what Dynamic Pricing is all about.
Your product-prices are updated at a interval you decide. It’s common to have it set to once a day, buy you can get it every hour if needed. Our success managers will give you recommendations, based your chosen strategies.