Resources : Pricing strategy

Defining your pricing strategy & identifying pricing opportunities

Did you ever wonder if some important pricing decisions can be formulated in a kind of mathematical / algorithmic way? Price2Spy will try to help you make a step into this direction with this functionality - in a very easy and simple way.
The Pricing Strategy module helps you define your own pricing strategies, which can be segmented either per product category, brand or supplier (or - for all the products in your Price2Spy account).

The idea is to help you identify if there are products which meet criteria (which you will define yourself) for pricing adjustments - in order to either improve your position on the market, or in order to maximize the profit and similar.

In general, the factors involved in this complex equation are

  • your own product price
  • competitors' product prices
  • products stock availability
  • products' purchase price
  • desired profit margin
  • Targeted price (if used)
  • desired pricing position (whether you'd like to be the cheapest, or cheaper / more expensive than a particular competitor)

Pricing opportunities

We have identified 3 types of pricing opportunities that Price2Spy can help you with

  • Clever drop - typically these are overpriced products where your purchase price and profit margin allow somewhat lower price
  • Clever raise - typically these are the products where your price is already the lowest on the market, but way too underpriced compared to your next cheaper competitor
  • Stock opportunities - these are products your competitors do have in stock, and you don't

For each of your pricing Strategies you can define a set of rules to identify the products which meet the above-mentioned criteria.

What you'll get in return is an up-to-date list of products fulfilling those criteria, together with the current prices and the prices Price2Spy will suggest (based on your rules). This list can be easily exported to Excel and shared with your team, so you can easily apply some of these adjustments to your products' prices.

Or, if you prefer working with Pricing Dashboard, you can easily create a pricing widget, for each of your Strategies.