retail price management

Find out how price optimization, best practices and smart pricing tools can help you improve your retailing guerilla skills and your bottom-line performance within your market vertical. So, let’s dive in and let’s examine which key performance indicators, metrics and skill sets work best for today’s changing landscape and retailing business models.

But first, let’s define the scope and spectrum of retail price management systems and implications in the day-to-day retail operations.

What is B2B Price Optimization and Management Software?

Price optimization and management software enables retailers like you to efficiently manage and scale up your retail pricing tactics of goods and services. Lately, these offerings have begun to support a wider range of smart selling tools — such as preemptive recommendations and customer churn notifications. Some retailers focus on the back-office price management and product management roles while other vendors focus on providing business intelligence and predictive analytic tools to help sales teams make informed decisions on-time, on-target and on-budget. This new generation of market intelligence solutions made by Multidev Technologies focuses on vendors whose software supports various B2B and B2C business models and platforms. ChainDrive Price Management Software belongs to this new breed of smart solutions used by multiple market players and verticals, including wholesalers, eTailers and distribution channels.

#Price management is one of most essential tools used nowadays by vendors of all sizes to improve their bottom lines. If you want a more profitable retail chain, no matter what industry or market niche you serve, you need to get a good grip over price changes and adjustments to the right personnel and develop tailormade pricing strategies that encourage customers to buy more products and spend more money in your stores or online through web order applications and gateways like eComDrive .

Here are five priceless lessons and tips on how to rev up your pricing tactics and battlefield skills

1.Set prices based on predefined zones or regions – Whether you organize your retail chain by state, regions, cities, or another geocentric way that best defines how you do business, you can set your prices based on those parameters. With centralized price management, you can set all the prices for all merchandise in a particular region for a given time period, or you can make the necessary price changes for each specific product. Either way, you need to pre-define your targeted zones and set your prices accordingly.

2.Deploy promotional campaigns – Promotional campaigns can be based on your pre-defined target zones or execute across your entire retail chain. They can be seasonal, timed for a particular event, or permanent. Nevertheless, the way you manage your promotional campaigns and outbound marketing efforts will most likely have an impact on your sales and dollars spent per customer.

3.Monitor, track, and analyze sales performance – When you keep your eye on the sales numbers–across the value chain, by zones, and by store–you can use that information to establish your price performance indicators. Creating a discount event can lure more customers and therefore spur more buying at a particular store that might be struggling, or promote an event in one town with a specific product price discount in order to drive traffic to your store during the shopping calendar or outside the usual shopping seasons.

4.Establish initial markup minimums – If your store managers set their own prices, you can control their minimums by setting an initial markup across your entire retail chain, department store or outlets. Retail managers can go higher based on their geography, but they can also establish minimum thresholds to ensure a specific percentage of profit per product is maintained.

5.Maintain access to price changes – Not everyone should have access to your price control tower; hence the importance of administration firewalls and access rights. Keep it under control so you can manage your innovative pricing manoeuvres across the organization without losing your sight on the competitive landscape.

ChainDrive Price Management Software and smart tools are designed to help you analyze your data. It will also provide you with detailed insights into your pricing performance while making sure that optimization leads to greater revenues and more profitability; provided that all winning recipes are put to practice.

Not only it is user-friendly, this #optimization software allows vendors like you to conduct insightful benchmarking comparisons that are valuable when it comes to monitoring competitive pricing strategies and the retail ecosystem.

ChainDrive Price Management Software can therefore be used to analyze product positioning or assess the level of business competitiveness; which eventually helps improving profit margins while allowing authorized users to make better-informed and better pricing decisions across the value chain.  

Last but not least, this fully-integrated software allows vendors to make custom-tailored pricing strategies in a seamless environment. Should you still have additional enquiries or want to find out more about how Multidev’s retail management advisers can help you step-up your heavy-duty retail operations, just dial the toll free line at 1800.820.1412 to book a free demo log on the following link website.

Pricing has a tremendous impact on your bottom-line, and the truth is a lot of small retailers struggle to know exactly how much to charge their customers.

How can you get it right? The harsh reality is that fewer than half of new entrants survive after 10 years in business. An August 2018 Investopedia article ranked “money management” as the second of the top five challenges for small businesses – and pricing strategy ultimately has a huge impact on the cash you have on hand.

Part of what makes retail pricing management hard is that there are a lot of different factors that impact what you need to charge – and how much customers are willing to pay.

Managing prices for your entire inventory can be time consuming and inefficient unless you have a strategy or set organizational rules for pricing. To make price management more efficient across your entire retail organization, try incorporating these winning strategies.

First Things First: Know your business costs

The most fundamental thing you need to do when it comes to pricing is getting a good grip on your costs.This includes everything from supplies you buy and the fixed expenses you pay for your retail premises, heating, businesses taxes, internet, phone, alarm, etc.

Even small shop owners have expenses, from your cell phone and Internet bill to parking and business services like accounting and legal advice.

Once you’ve tallied up all your costs, you know how much money you need to pay them off. This helps determines the minimum price you need to set for your product or service.

1. Set your profit margin-This is a tricky zone. You don’t just want narrow your target objectives to breaking even in your business or to simply offset your costs. Most retailers want to make a decent profit. So how much profit can you reasonably expect to make your business profitable. This will depend on many other factors and tactics.
2. Assess the competition– Take a look at your competitors’ pricing to determine what ballpark your prices should be in. Whether you price at the same level, above or below it will depend a lot on your business goals, brand and marketplace positioning. If you are offering something unique, you can price a bit higher than others in your competitor category.
3. Know your (potential) customers– If your customers don’t care that your pots and pans are made with top-grade steel, you really have two choices: start selling a lower-quality product or find a new market segment that is willing to pay more. If you opt for the latter, you’ll need to adopt marketing techniques tailored to that new target – for example, by establishing a website that attracts them or advertising where they are already looking.
4. Establish zones – A zone can be a geographical region–such as a single city or zip, a state, or several states that you group into a region. For international retail chains, it could be a country. A zone may also be a particular retail chain or department.
5. Set up product groups – A product group for retail prices may consist of similar items in your inventory, such as “cowboy boots” or “baseball gloves,” or it may consist of items that go together, such as “house slippers and night gowns” or “sofas and throw pillows.”
6. Plan seasonally– If you want to run seasonal promotions, group all products you want included in your seasonal discount into one group and establish your discounts based on that. If you run the same seasonal promotion every year, you can set your discounts with one click of a button.
7. Reward loyal customers – Loyalty programs have become very popular, and it’s a great way to reward loyal customers with special retail prices. You can make price changes easy by creating a loyalty group in your price management solution and reward all loyal customers at once.
8. Use volume triggers – If you want to encourage higher volume purchasing, set a minimum amount of purchase or a minimum number of items in the group, and when a customer hits that minimum it will trigger an automatic discount.
9. Ride the calendar – You can have a different promotion every month. Simply setup a group for each calendar month and add the items you want to discount in that month. Another variation of this is to use days of the week.

There are many ways to manage retail prices efficiently. Every retail chain is different. Do what is best for your retail operation.

With ChainDrive, you can set up your own promotional rules. You determine what is important for
tracking and establishing discounts. If it makes sense to use another metric, you know your business better than we do.

For many retailers ChainDrive Price Management Software allows you to optimize and control your pricing throughout the product life cycle . Chaindrive pos is a life saver during the pandemic times when most brick and mortar stores were subject to mandatory lock down and extended periods of quarantine measures. If you wish to get more leads in your retail business and get more retail analytics power for your retail engine, you have to enrich your retail business with Chaindrive Price management software.