Price management software can be an invaluable resource for retailers everywhere. But what does it actually do, and how do you know which platform is the best fit for you?
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You may have an idea what retail price management feels like.
But unlike a circus act or street performance, price list management isn’t a sideshow—it’s one of the most important elements of retail eCommerce. And while it can be a balancing act, once you master it, your organization can reach new levels of profitability.
You don’t have to go it alone. Performers have instructors. Gymnasts have coaches. And retailers have price management software to help them. Here’s everything you need to know.
Retail price management is the process of determining the value of your product. Finding the optimal price involves more than just simple math. You need to know:
Effective price list management keeps a finger on the pulse of supply and demand, as well as trends not only in your industry, but in other industries and in current events. Who could have predicted that exercise bike and laptop sales would go through the roof during the lockdown—or that jeans and skirt sales would rise as we emerged? Businesses with good price management strategies, that’s who.
Retail price management is a key part of building a winning sales machine. It’s also more than knowledge—you need processes in place to turn that data into pricing. As we’ll see later, that’s where price management software comes in.
Price list management goes beyond the end price that you charge the consumer. You also need to manage these components:
There’s more to product and price management than simply choosing the lowest price that allows you to still make a profit. Here are the most common retail pricing strategies:
There’s a lot that goes into retail price management. With price management software, you can use elements of all of these strategies to optimize your product pricing.
Price management software is a tool that allows businesses to set the optimal price for their products. It will help you create, analyze, manage, and refine your pricing strategies, as well as track your current prices so you can see how they impact your margins and profitability. It will also allow you to share accurate, consistent pricing across all of your channels, an important part of product syndication.
So why use price management software? The simple answer is that it can improve your revenue and profits, especially as you scale and add more products. More specifically, it can help your organization:
Most eCommerce companies find that a retail price management system is a vital part of their digital ecosystem. You’ll want to look for one that:
A comprehensive price management system lets you ditch the spreadsheets and create a more holistic strategy across all of your locations, channels, and audiences. But it doesn’t exist in a silo. Price management software is designed to integrate with your tech stack, and can be a crucial part of your overall product information management (PIM).
PIM software allows you to improve your data quality and consistency across all of your channels, making it a keystone of digital commerce. With the right information at your fingertips, including pricing, you provide a better product experience, and that provides a better customer experience.
It’s all a part of what the Akeneo team calls product experience management (PXM), and it’s the foundation of what we do. Want to know more? Read more about PXM and learn how PIM can benefit your business.
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