Are you still using manual methods and approaches to track prices for your products and goods? Surely not, in this day and age, we have access to the internet and powerful devices in the palm of our hands. All you need is the ideal program to track how your product compares to your competitors (see monitoring software for map enforment).
While there are different types of value that consumers look for in a product, often they purchase a product by its price. To stay ahead of the competition and ensure the sale of your products, price matching or tracking is a must.
The team from Branding Alignment advises on the need for a price matching software as well as the benefits and disadvantages. We have compiled the information to help our clients understand how they can have a competitive edge with this type of software.
Join The Big Boys
You are not the first business to consider the benefits of a pricing strategy. Large companies and retailers such as Target and Walmart have thrived on this model. Customers visit the stores in droves knowing that the prices in the stores are the lowest in the region.
Price matching software is a tool used by online retailers and traders to monitor the changes in the price of products in their market. The tool detects changes in the competitor’s product and anticipates possible changes (see best map monitoring software). It is a vital source that allows retailers to plan and implement a strategy in any market.
Price matching serves as a reassuring tool to customers when used right. Online shoppers can be reassured that your product is the best option in the industry. They are convinced that they have made an intelligent purchase, and you can enjoy substantial returns
Who Is The Price Matching Software For?
The software can be used by any brand or online retailer. From our experience, it is mainly used by e-Commerce vendors and other online businesses. This is because the price is one of the major marketing strategies in the online market. With customized software, an online trader can obtain information, modify its uses and implement a pricing strategy.
The Benefits Of Using Price Matching & Optimization Software
There are many benefits that await a manufacturer who makes use of price matching/ tracking software. Some of them have been detailed below.
Improves on quality of information obtained
Even with an experienced and reputable team on board, mistakes are always possible. When using manual tracking methods, mistakes might be made during the recording and transfer of information. This will have an effect on the final move implemented and also on the cost.
The pace of decision making
If you have some experience in the e-commerce retail industry, you know the importance of quick decision-making. Price wars are quite competitive and touch on almost every industry, from electronics to home maintenance to kitchen appliances. Making use of manual approaches delays your decision-making skills
The use of price matching software guarantees a faster response to changes in the market. You can adjust your prices accordingly and gain a competitive advantage.
Save on time
Time is a valuable commodity. With the use of price matching software, you can increase the productivity of your staff. The software can cast a larger net, get better quality information, and transfer that information to you easily and quickly.
You can set the employees of your company to more productive tasks that are guaranteed to increase revenue.
Better data analysis
The information sent through the price matching software is sent in a digital format, making it easier for faster and better analysis of the data. Some of the novel data analysis questions that a price matching software can answer include;
· The shelf life of your product as well as that of the competitors;
· The frequency of price changes; weekly, regularly, or seasonally
· The position of your product’s price compared to the overall competition
· Appropriate use of promotions, discounts, and other offers
With all this vital information, you can guide the business in the best direction possible.
Are There Any Risks Involved?
Just like the use of any strategy in any business or industry, there are a few challenges to using price matching software.
Reduced profit margins
While you have a passion for the final good or product, a key motivator is the financial returns; the profit you take home from the sale of each item. And the point for each sale is the price that the item is bought at.
However, with price matching software, this can eat into your profits significantly. After all, each company has unique manufacturing costs that guide the final price.
A provocation to the customer
By providing the price matching software to the customer, you are incentivizing the customer to check the price in your competitor’s stores. A customer might have heard of the quality of service on your online store. However, by providing the software, you are breaking up the buying process and pulling the customer away.
Beware Of The Rat Race
Who is the winner of a rat race? You guessed it, a rat. Price wars are a possibility as companies in an industry engage in a back-and-forth for the lowest price for product alternatives. It is a never-ending cycle with lower profit margins, poor quality products, and other cons.
By focusing on the product’s pricing, it is possible that you are ignoring other significant parts of the product or business. While focusing on price is a way of entering a market, it should not be your focus in the long term.
Thanks to the advantages mentioned above, a growing segment of B2B and B2C purchases are now moving online. Using a price matching software helps you lure in potential customers, improves your sales, and also improves the quality of data used in analysis and decision-making.
For more similar information on automation technology and e-commerce sales, contact the expert team at Brand Alignment. We have the experience, expertise, and industry knowledge that you need to improve your sales, the reputation of the brand, and increase the longevity of the business.
Get in touch with us today.