This means, a size 9 Nike Air Jordan White shoe is compared exactly to the same pair of shoe – not size 9.5, not yellow color.Ģ. The Product Intelligence vendor will precisely match at SKU level with that of the competitor.
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What are 5 ways to solve Price Intelligence Software errors?ġ. Many times, retailers have their own pricing sciences team and they need the high quality raw pricing data. They are seeking pricing data provider that they can trust, and one that can easily and automatically make price changes across their channels. This adds to the Total Cost of Ownership. This is extra cost and adds friction to the purchase process.
Merchandising Manager are concerned that they must assign a resource to make the price changes. If the retailer is a premium brand, they don’t want to be repricing vs one off ebay sellers.ģ. Retailers must understand how often they should change prices and who they should change price against. Retailers know that other datasets like advertizing, stock, trends, and others are required to make smart pricing. Thus, retailers are seeking an intelligent repricer that adds intelligent rules to allow the retailer to make money and not lose money. With Retailers constantly changing prices (especially Amazon Retailers), the fear is that margins will keep dropping and the retailer will ultimately lose money. Pricing analysts worry that pricing is a race to the bottom with 100% reliance on automated price intelligence tools. If you have a large product catalog, it is impossible to manually find competitors’ prices.Ģ. If there are a few SKUs, you can find competitors’ prices. We have worked with pricing analysts who have utilized automated repricers, hated the bad data and stopped using their repricers going back to not doing repricing or trying to find competitors’ prices manually. As a result of this incorrect competitive price, merchandising managers cannot trust the data and get frustrated. They may suggest a price change, however, it may be for 1 T-Shirt vs 2 as in the example above. We found that many competitive price intelligence software don’t provide this level of precision when they make a suggestion. What are the 3 problems with Competitive Price Intelligence Software?ġ. If your repricer tool providers prices on a product with different attributes, you don’t have the apple to apple match and you won’t be able to reprice correctly. So you want your competitive price monitoring tool to tell you exactly how much a competitor is selling the same SKU Fruit of the Loom T-Shirt Size Large in packs of 2. If you select a different color or other combinations like size, price is different. The same set for a size “Medium” costs $21.92.
Take this example – you sell a Fruit of the Loom T-Shirt Size Large in packs of 2. Pricing analysts use the solution but it is not generating the results that they are expecting.
They are not trusting their competitive pricing tool due to the poor quality of the price data they are getting and the pricing errors that it is thus generating. We have heard retailers in the apparel category are particularly challenged by the price intelligence tools that they are using.
Without that precise match, your pricing tool will give you errors and you can’t do your job effectively. As a pricing analyst, you need your competitive pricing tools to match your SKUs to those your competitor’s at a variant level.