Price Management Has Two Sides
No retailer wants to resort to huge discounts in order to make at least some profit. Failing to control your pricing has that risk. You can avoid this problem by managing your pricing decisions correctly and monitoring the effects of your decisions. This keeps your pricing strategies in step with what is happening in every selling channel.
Managing Your Pricing Decisions
When you make pricing decisions you need a software program that can apply conditional logic to promotions and price adjustments. When you set parameters like beginning-to-end dates, styles, or classifications the software tool uses that logic to give you complete control.
Part of managing your pricing has to involve security. Who decides what actions can be taken? Who can apply markdowns, discounts, and other changes? You need a software platform that allows system-wide security settings so that the only people allowed to control price changes are those approved by you.
Since retailers often are handling multiple promotional campaigns at the same time, you need a software tool that gives you control over all the details. Your software should give you options like the ability to set prices according to zones or channels. Customer-specific promotions need to be set in conjunction with accurate details from your CRM.
Monitoring The Effects of Your Decisions
Integration of all your data provides the information you need to manage and monitor pricing decisions. Integration is possible when your data is stored in a secure, centralized location. Look for software that provides a central database and the tools to manage your data effectively.
Once decisions are in place, the next step is monitoring the effects of those decisions. Without adequate reporting, how can you analyze what is happening? Your software needs to provide the tracking, reporting, and analysis tools that allow you to access the effectiveness of your price change decisions.
Look for price management software tools that are part of an integrated retail management solution that enables the enterprise-wide price transparency you need. Look for real-time performance metrics so you can monitor and analyze past decisions in the light of what is happening now. Your price management software is an important tool that you cannot afford to ignore. The right software will give you the power to move away from manual intervention and automate price management successfully. You can manage and monitor price management without the risk of losing profitability.