Pricing management
Price management is gaining momentum as one of the most powerful tactics for profit in the conditions of market instability. Traditional approaches to price management, such as lowering it, are already ineffective. Now the retailer is forced to take more advantage of the market and improve strategic investment.
On the other hand, with increasing sales in the store, retailers need to manage and optimize prices in each channel, region, store during the constant changes in trends among consumers, suppliers and competitors. Atriny’s experience and our tools allow retailers to define and implement policies, as well as adjust prices on any channel.
What causes the biggest difficulty in pricing for retailers?
- Huge pressure from discounters and e-retailers, decrease in customer base
- Margin below expectations for different regions
- The difficulty of managing prices and optimizing them for different channels / regions / stores
- How to match the regular and promotional prices of competitors?
- Planning price changes in stores and analyzing the impact of price decisions is a complex and inefficient process
- Insufficiency of people for the effective implementation and implementation of pricing policies
- Lack of formalization of pricing policies
- Is it possible to reduce dependence on regular promotions?
- Limiting the number of price changes at each outlet per day.
3 BASIC ADVANTAGES
5-20%
Retailer Revenue Increase
1-1.5%
Return on investment over a period of years
5-10%
Sales growth
Ensuring accurate, coordinated pricing to sustain loyalty
Pricing each product for each channel is a challenge. Pricing errors or conflicts put customer loyalty at risk and affect sales. We provide retailers with powerful solutions for price management — automation of policy compliance and the ability to update in real time based on custom pricing rules.
We solve these problems, and not only them:
- Correct and coordinated management of product prices in different channels is a difficult task. Pricing errors and conflicts jeopardize customer loyalty and affect business results.
- Automatic filtering, calculation, ranking and planning of price changes in stores reduces operating costs.
- Automation of the process of calculating and planning prices leads to a reduction in a number of errors, an increase in the speed of implementation of the required changes, and lowers costs.
Maximize sales and profit with the best price.
Price optimization is an art and science. Retailers make the best price decisions considering all factors, such as customer behavior, projected demand, assortment, competition, and more. We help retailers optimize prices by analyzing the impact of price changes on several scenarios and various business goals, to determine the ideal pricing plan for a group of products and to provide transparency of pricing across organization.
Implementation of pricing strategies for all retail channels
Price optimization is valuable in itself, but retailers achieve maximum benefits when price optimization is synchronized across all sales channels. When using, in combination with other solutions on the retail platform offered by Atriny, as well as in combination with your execution system, the retailer will have full control over the management and implementation of the optimized pricing policy across all channels.
The solution from Atriny on pricing is:
- A modern solution for PRICING AND OPTIMIZATION POLICIES
- Based on an advanced engine of business rules and optimization algorithms as part of a retailer’s unified business strategy
- With the ability to simulate different scenarios when DETERMINING THE BEST PRICE FOR GOODS for each channel, cluster or individual store
The basic functionality of the solution that supports the pricing policy is:
DECISION MAKING SUPPORT
- The ability to view all the information related to pricing at the required level (cost, competitor prices, price and sales history, …) in a single system
- The ability to determine the basic logic of price updates (for example, automatic price equalization for similar products, prices for sets, ..)
- GENERAL CONFORMITY OF POLICIES AND PRICE LISTS
- Control of the resulting price lists (for example, prices for identical goods of different sizes, ..)
- Alerts in case of violation of price restrictions (for example, the minimum margin category, the minimum difference % with competitors) …
CENTRALIZED CONTROL AND TRANSPARENCY OF STORE PRICES
- Approving store prices or determining a price range for stores
- Planning price updates for stores (for example, dividing 1000 price updates into 4 sets of 250 updates sold according to the schedule)
- Centralized store price monitoring
As a result of applying a pricing management solution in a company, the retailer gets such benefits as:
- Decrease in time for planning and implementation of pricing
- Profitability Improvement
- Use of uniform rules and pricing policies throughout the company (transparency of pricing rules)
- Centralized management of pricing rules taking into account all available information with the ability to assign retail prices by the store itself for part of the range
- Building an optimal pricing model based on competitor prices and price elasticity of goods
- Full control of prices set by stores by the central office
- Quick adaptation to competitor prices