Price the number one driver for cash-strapped shoppers
Study after study has shown that in these uncertain economic times, price sensitive shoppers are increasingly seeking out the best value deals.A recent Retail Survey from Squire Sanders, Kantar Retail and the Retail Trust revealed that 90 percent of shoppers have confessed to participating in showrooming – the practice of looking at a product in-store before finding the best price online, often at a different retailer.
The findings further reveal that shoppers are no longer loyal to their favourite retailers, and will happily ditch them in favour of lower prices elsewhere. Counteracting the showrooming phenomenon is no easy task as shoppers continue to show this lack of loyalty towards the high street, motivated by lower prices. However with sharper pricing in place, the growing showrooming threat can be quelled.
Retailers need to be constantly monitoring their competitors and proactively adjusting their prices in order to offer best value to shoppers. Price sensitivity, increased consumer price transparency and increased price aggressiveness from competitors are the key reasons why it’s essential for retailers to get their pricing right – and why they need to be monitoring their competitors’ prices daily using price intelligence tools such as Profitero.
How you manage your product’s prices will determine the success or failure of your business: finding out what is the ‘right’ price for your product will keep your prices competitive and avoid you losing out on potential sales.
If your prices are too high compared to your competitors, you risk losing out on sales. A price monitoring tool will highlight where your prices are higher than your competitors, enabling you to lower your prices instantly and helping you to increase sales immediately
If your prices are too low compared to your competitors, you are at risk of lowering your profit margins. A price monitoring tool will automatically flag where your prices are lower than your competitor, allowing you to raise your prices - whilst still being competitive - and helping you to increase your overall profit margins
If your competitor is out of stock, you can take immediate advantage to increase sales. A competitive price intelligence tool provides you with up-to-date information about the stock availability of your competitors’ products. When you are alerted that a product is out of stock with a competitor, you can increase your price, thereby increasing sales.