If you’re mass-selling anything, the best prices will usually mean the lowest prices. This is because competition is more challenging than ever, and consumers do their research. If they can find a better deal for the same item they’ll flock over to your cheapest competitor, have no doubt about it. It only makes sense, after all.
Of course, there are exceptions to every rule, and being the cheapest seller on the market may not always be the best pricing strategy. To make sure that it is, you’ll need to perform thorough market research, that will get you familiar with both your customer and competitors.
Let’s see how being the cheapest seller looks in practice, with Price2Spy.
The case study that we’re going to go over is that of a UK nationwide retailer of tools and construction equipment. They’re currently employing over 500 full-time employees and have 6 category managers.
They’re selling around 5000 different products, but aren’t tracking competitors’ prices for each of them. What they’ve done instead is that they’ve identified around 3500 most important products and matched them to those of their competitors.
This means that when it came to the total number of different websites Price2Spy had to monitor, the number grew to around 40. Not every competitor website had every product out of those 3500 being monitored. However, the average amount of websites that one product could be found on was around 10.
So, what did the UK retailer do in order to remain the cheapest on the market? They’ve used Price2Spy’s two well-known repricing rules:
How does all of this look from our client’s perspective?
Every day, they log into their Price2Spy account and check the repricing suggestions offered by Price2Spy. Depending on what you want to accomplish – more speed or more control – the repricing process can be either manual or automated.
Our client chose the manual option and they directly oversee and approve or disapprove every single price change.
When it comes to Price2Spy’s repricing suggestions, they approve over 90% of them each day, and this means every day there are:
Our client uses the Magento store and it’s linked to their Price2Spy account. This means that even though they approve every price change manually in the Price2Spy interface, the changes, once approved, are performed automatically on their Magento store. This means they don’t have to spend time in two interfaces (Price2Spy and Magento), doing essentially the same thing.
Here we’ve listed some additional details about this use case for Price2Spy.
If this sounds interesting and if you think your business can benefit from using this pricing strategy, there’s no reason to hesitate.
|The United Kingdom
|Number of products