Shape your market entry with customer-centric pricing
Adopt the right market price in your pricing strategy
Faced with low margins and high cost pressure, price is a central marketing instrument and key profit driver for many retailers. In practice, however, retailers still largely stick to conventional methods of price formation, where the initial price is determined by rules of thumb and cost-plus thinking. As a rule, the acquisition costs serve as the basis for the markup calculation.
Sound familiar? Try something new – adopt customer-centric pricing by taking your customers’ needs and willingness to pay into account and ensure your successful market penetration.
How we ensure the right original price for you
Even during product development, it is possible to take into consideration how certain article characteristics have influenced past sales. Combined with current market and competitor data and an innovative value-based pricing approach, this ensures customer focus, even during the original price calculation.
Find your initial price intelligently and benefit
However, if calculated intelligently, you are able to set the right value in your customers’ minds, achieve greater sales potential and increase customer loyalty in the process. Are you ready to adopt a customer-centric approach?
Reference Articles and Attributes
A comprehensive price database provides the relevant information for pricing decisions. Historical articles are classified and saved in the database according to their attributes. When listing new articles, suitable reference articles are found via clustering and a price suggestion is generated. In addition, information such as order quantities, sales quantities, sales periods and locations are taken into account in pricing.
Market and Competitor Information
In addition to historical article data, we provide pricing policy information on relevant competitors. A special matching procedure allows you to identify articles with similar attributes and features and takes them into account when setting prices. This ensures the strategic pricing and positioning strategy. In addition, you have the possibility to integrate further external databases, for instance, trend forecasting.
The measurement of cross-price elasticities is of key importance for overall product price optimization. Changes in demand resulting from price adjustments are analyzed and the specific product range relationships are forecast on the basis of defined attributes. The algorithm processes this information automatically and determines the optimum initial price for each product. This approach makes targeted use of substitutive and complementary product relationships in order to achieve an optimized result across all articles.