Pricing Archives - Marketmole

What Does “Predictive Modeling” Mean?

Predictive modeling is a way to price, promote and predict product sales based on lots of unstructured data. The analytics process includes a variety of techniques such as using machine learning, monitoring the web for relevant data and analyzing historical facts to make predictions about sales trends, optimal prices and other critical marketing efforts. The approach uses data to generate a predictive score for people, employees, SKUs, components, machines and other processes involved in the sale and marketing of products.

How Does the Process Work?

The first step to conduct valuable insights is to define the project. That includes the goals of the effort, the variables, scope of the analysis and identification of the relevant datasets to be included. Other steps in the process include:

  • Collecting Data
    Accurate data mining is essential to the process. That requires gathering data from multiple sources to provide a more complete view of customer actions and browsing behavior. Business apps offer inexpensive ways to collect unstructured data from many sources including websites, social media pages, review sites, marketplace platforms and competitor websites. This information can prove invaluable by providing a broader view of the product, market for it, social media mentions, reviews, keyword choices and price tracking.
  • Analyzing the Data
    The process of making sense of unstructured data involves inspecting, cleaning and modeling the data that companies gather. This can be done manually, but the prospect is nearly Herculean. Most companies use some kind of business software to make sense of the data. The process usually involves machine learning capabilities or rules-based analyses to identify key information. [1]The rules-based approach requires using logic and linguistic skills to define a set of categories and create rules for each category. This requires hiring a specialist or using the experience of skilled in-house IT staff and natural language processing functions. Manual categorization is also an option for managing small volumes of data.
  • Verification Using Statistical Analyses
    Analyzing related statistics can validate predictions, assumptions and hypotheses.
  • Deployment of Predictive Models
    Using modeling to create accurate models of real-world behavior can generate automated responses in everyday business operations or trigger staff alerts for more critical decisions. It’s important to monitor predictive analytics to ensure that each model’s performance falls within predictive parameters.

Why Should E-commerce Companies Use Predictive Modeling?

Predictive analytics has been around for quite some time, but few companies used it during the early years of computing because of the difficulties and prohibitive costs. Big data has changed the game as more companies must find ways to gain insights from unstructured data. E-commerce companies especially stand to benefit by predictive customer behavior and designing products and prices to get better sales results.

Technology and monitoring apps grow cheaper every year, so it’s more affordable than ever for companies to deal with unstructured data to model customer behavior. The benefits of predictive analytics include: [2]

  • Predicting in advance what customers will buy
  • Scheduling large and small production runs accurately to keep inventory at just-in-time levels
  • Managing personalized recommendations and incentive offers
  • Improving supply chain management
  • Pricing products in the sweet spot between too expensive and too cheap
  • Predicting when to use alternative pricing strategies such as those based on competitor prices, market penetration, milking the market and others
  • Increasing business intelligence for developing new products and business opportunities
  • Reducing fraud
  • Earning higher revenues from recommendations, suggestions and cross-selling

What Are Some of the Predictive Analytics Technologies?

Information-monitoring and data-gathering apps are popular choices for low-cost solutions for collecting unstructured data from many sources. Business software grows more intelligent each day as many kinds of software incorporate machine learning into their algorithms. The market for predictive analytics software grows cheaper each year, and the market is expected to reach $9.2 billion by the end of 2020. [3] Some of the top predictive and modeling technologies include:

  • Predictive Marketing Dashboards
    This technology can bring together all aspects of predictive insights into a single dashboard that staff can use to monitor, manipulate and fine-tune predictions and corresponding actions. Staff needs only to identify what they’re looking for, and the software matches the request with data insights.Many business intelligence tools can work in tandem or run parallel to make business decisions more accurate based on key criteria. These resources can generate fraud and risk predictions, predict customer behavior and apply regulatory guidelines to business initiatives.
  • Predictive Libraries
    Some technologies and software include predictive libraries to fit most security and needs. Self-aware software can build predictive models based on criteria that companies select.
  • Artificial Intelligence
    Drawing from machine learning, artificial intelligence and statistics, AUI systems can apply machine learning in data mining to increase accuracy and relevance.
  • Industry-Specific Analytics
    Key industries have industry-specific technology to make predictions about business, production and supply chain management. For example, supply chain management predictive software can use comparative analyses to choose smarter ways to optimize the supply chain and monitor conditions in real-time to prevent costly delays.

Why Should Companies Invest in Predictive Technologies?

Most companies use only 0.5 percent of the total data that they possess. E-commerce companies have a wealth of data from their websites, social pages and marketing channels, and the sky’s the limit for third-party intelligence and internet monitoring. [4] Machine learning is becoming more capable as they retrieve and transform analytics into actionable insights.

Identifying, capturing and using big data can improve the bottom line for any e-commerce company. For example, Amazon earns 35 percent more income based on its automated product recommendations. Enhancing a company’s pricing strategy is one of the top benefits of predictive modeling. Most companies using the approach earn between 2 percent and 7 increases in profit margins and between 200 percent and 350 percent in return on their investments in predictive technology.

 


 

MarketMole provides an up-to-the-minute holistic view of what’s happening in your market, including product pricing, product reviews and trending topics. Our market intelligence tools can be applied to any pages on the web, sending you notifications about stock levels, pricing and competitor pricing, negative reviews, MAP violations detection and more.

Contact us to learn how we can help you save time and make more money.

Learn more about MarketMole and our services.

 


 

References:

[1] Business2community.com: Making Sense of Unstructured Data with Text Analytics
https://www.business2community.com/business-intelligence/making-sense-unstructured-data-text-analytics-01930919

[2] Blog.blackcurve.com: Why eCommerce Companies Should Use Predictive Analytics
https://blog.blackcurve.com/why-ecommerce-companies-should-use-predictive-analytics

[3] Technologyadvice.com: Top 10 Predictive Analytics Tools, By Category
https://technologyadvice.com/blog/information-technology/top-predictive-analytics-tools/

[4] Forbes.com Here’s How Data And Analytics Can Benefit E-Commerce Business Owners
https://www.forbes.com/sites/andrewarnold/2019/01/04/heres-how-data-and-analytics-can-benefit-e-commerce-business-owners/#6a59a7d71460

How to Choose a Pricing Strategy

Choosing a pricing strategy serves a baseline for products that often have pricing tiers and other specialty prices in B2B sales. Pricing is critical in business-to-business sales because profit margins can be extraordinarily thin when products are sold at wholesale prices. Companies that supply dropshippers also face the problem of charging a price that allows them to make a profit. Even B2C retail sales are affected by the pricing approach. If companies charge too much, the products won’t sell. If products are underpriced, a company loses profit.

Price Planning Best Practices

Pricing science has its roots in the deregulation of the airline industry in the 1970s. [1] That’s when the airlines began using flexible pricing based on demand. The basics of scientific pricing can be summarized as the use of statistical models, competitor analyses, costs and consumer demand to create a comprehensive pricing strategy.

Basically, companies must find the “sweet spot” between supply and demand. The most important considerations include the three Cs:

  1. Cost: All the costs of a product and prorated portions of overhead
  2. Competition: What competitors charge for similar products
  3. Customers: What the targeted customer demographic is willing to pay

The best strategies for pricing include adopting demographic-based pricing and updating prices based on market demand, the availability of raw materials, brand perception and other factors such as company goals.

Demographic Analysis

Companies need solid demographic data to target the right customers. This information includes:

  • Gender, age and ethnic affiliation
  • Income information
  • Location
  • Educational level
  • Buying and browsing data if available

The Bass Diffusion Model, which was developed by Frank Bass, divides consumers into two groups: innovators and imitators. [1] The group of innovators is more likely to buy a new product and recommend it to others. Imitators adopt a product after other people begin using it.

Other Best Practices for Setting Prices in the Sweet Spot

Companies need to consider the target audience, the product and other factors that include:

  • Does the product create a new market, and if so, is a market-penetration strategy workable?
  • What benefits does the product have over similar products?
  • What products do targeted customers regularly use?
  • Who are the company’s competitors?
  • Is the market for the product established or growing?
  • Are there risks in using the product or service?

Knowing the answers to these questions can guide companies to the best pricing strategy.

Pricing Strategies

There are many strategies to price e-commerce products. Each strategy comes with special considerations that – if managed – make the strategy work more successfully. Some of the top strategies include: [2]

  • Prices Based on Value
    Value is not the same as cost. Many business owners focus solely on their costs, but value makes a better standard for pricing because it considers the demand for the product. The important issue is to make sure that the value has a basis in real-world demand.
  • Prices Based on Costs
    The cost of materials and manufacturing are commonly used to set prices, but many companies fail to consider associated expenses such as marketing and the costs of overhead.
  • Prices Based on Marketing Trends
    Trends affect prices, and these can change throughout the marketing period. Economic and product trends are both important factors. New technologies can make existing products somewhat obsolete, but they can also make certain products more desirable. As the desire for new and expensive technology wanes, older products can regain their desirability.
  • Prices Based on Perception
    This is one of the most difficult pricing approaches because companies must guess whether a given product will be well-regarded. It’s important to create compelling content to promote the benefits of high-end products to raise customer perception. On the other end of the spectrum, low prices affect customer perception. Many people believe that they get the quality that they pay for when shopping.
  • Prices Based on Demand
    It’s important to raise or lower prices based on market demand. When a company can offer high value or identify high demand, that’s a good time to raise prices or vice versa
  • Prices Based on Market-penetration Strategies
    Companies often need to attract customers to their brand. Pricing key products at discounts based on their value can attract customers to the brand where other products offer higher profit margins.
  • Prices Based on Product Differentiation
    Prices based on improved quality and special features can work if a company can make a strong case to differentiate the product from similar products offered by competitors. In fact, it’s often important to differentiate products just to compete with an established brand at a similar price.
  • Prices Based on Experimentation
    Sometimes, the best strategy is experimentation to see what works in real-world scenarios. Companies can test-market their products, conduct consumer surveys, solicit social media influencers with free samples and use other strategies to test the waters.
  • Prices Based on Competitor Prices
    Competition-based prices focus on competitor prices and not on costs or consumer demand. Companies can use an aggregate average to match or slightly undercut prices.
  • Dynamic Pricing
    Dynamic pricing is a flexible strategy that works especially well with wholesale buyers, hotels and airlines. Also known as surge pricing and demand pricing, dynamic pricing is time-sensitive. B2B buyers and travelers often capitalize on conditions such as a company wanting to move inventory or a hotel wanting to fill rooms on a given day.
  • Incentive-Based Pricing
    Many companies offer discounts and incentives to move languishing inventories of certain products.
  • Prices Based on Skimming
    Some companies price new items high with extreme profit margins to milk the market for profit – usually for technology items with short shelf lives such as new phones. After sales begin to slide, companies lower the price to target bargain hunters.

Pricing elasticity is another important factor in pricing. Some products get purchased despite price increases. These include items such as cigarettes, vaping supplies, gasoline, batteries, heating fuel, food products, etc. Optional goods, such as electronics, cooking supplies and household decor, are considered elastic and more vulnerable to slow sales if the prices increase.

If consumers still buy a product after a price increase, companies can consider the product inelastic – under current market conditions. [3]

Pricing Tools

Dealing with multiple products, multiple sales channels and marketing incentives can make manual pricing almost impossible to manage. That’s why pricing software, price monitoring tools and automatic calculators can be important resources for e-commerce.

Test and Fine-tune Regularly

It’s simply not enough to set up a pricing template and leave matters alone. Some strategies that look good on paper don’t work as well as expected in generating real-world sales. Market trends change constantly, and a good plan might stop working. That’s why companies should regularly monitor and fine-tune their pricing strategies.

Most companies produce a range of goods, and some products might use one strategy while another group of products sells better or earns more profit using another pricing approach. Hybrid strategies can even be used for the same product sold in different sales channels.

Pricing Strategically

Pricing strategies help companies maximize profit and revenue for each product or service. It’s not possible to price products in a vacuum; decision-makers must consider the company’s revenue goals, marketing plans, core concept, business associates, sales channels and competitor pricing to develop a comprehensive pricing approach.

 


 

MarketMole provides an up-to-the-minute holistic view of what’s happening in your market, including product pricing, product reviews and trending topics. Our market intelligence tools can be applied to any pages on the web, sending you notifications about stock levels, pricing and competitor pricing, negative reviews, MAP violations detection and more.

Contact us to learn how we can help you save time and make more money.

Learn more about MarketMole and our services.

 


 

References:

[1] Ecwid.com: How to Price Your Products? A Science Backed Answer
https://www.ecwid.com/blog/how-to-price-your-products.html

[2] Americanexpress.com: Get It Right: Pricing Strategies That Work
https://www.marketingdonut.co.uk/market-research/benchmarking/choose-a-pricing-strategy

[3] Blog.hubspot.com: The Ultimate Guide to Pricing Strategies
\https://blog.hubspot.com/sales/pricing-strategy

Top 5 E-Commerce Pricing Strategies

Any B2B or B2C company faces the complex problem of pricing products to generate maximum conversions. Different products might require different strategies, and company decision-makers might need to experiment with pricing strategies to find the best approach for each marketing channel. Marketing any product or service takes a studied approach that includes managing the product, pricing, place and promotion.

Product, Pricing, Place and Promotion

The four Ps, product, pricing, place and promotion, have been known as key elements of marketing since the 1950s when Neil Borden introduced the concept. [1] Products refer to the goods and services a company markets, and pricing is a key factor depending on product quality, exclusivity, low price or premium price.

Place is where a given company sells its products, and in today’s online marketing, that might include many channels such as the company website, social media pages, brick-and-mortar locations and marketplace platforms like Amazon and eBay. Many products bearing the company’s brand are sold in multiple retail locations and online stores. Promotion includes all the advertising, incentives, public relations and promotional strategies a company uses to “sell” the product. All of the four Ps are linked to price, and the following pricing strategies are some of the most popular among e-commerce companies:

1. Marketing Penetration Pricing Strategy

Marketing penetration pricing ranks as one of the top strategies used by online businesses. The premise is simple – products are priced low to attract more site visitors or B2B decision-makers to lure customers with lower prices. The technique targets price-comparison buyers, but the need to price all items low is not necessary. Examples of companies that use this strategy include Kroger, Sam’s Club, Walmart and Costco, businesses which use low prices to increase their market share and attract regular customers. [2]

The method works well for companies that have new products or products that require buying additional supplies such as videos, games, food, etc. Most eCommerce companies can offer products for sale at only a little above margin to penetrate the market and make a profit from accessories, supplies and luxury products that are also available. This is similar to offering loss-leader items, such as bread and milk for sale at prices below costs.

2. Market Skimming Pricing Strategy

This strategy is an approach almost directly opposite to that of price penetration. Marketers set high prices for high-end products and services to get as much profit as possible from early buyers, those who often enjoy showing off expensive products and top brand names. Essentially, e-commerce companies skim the market to capture the cream, those willing to spend top dollar. [3] Phone manufacturers commonly use this technique for phones with new features, and people get on waiting lists to be among the first to use new phone technology.

After sales begin to slip, companies adjust their plans by offering different versions of the product and lowering the cost of the original to make it appealing to bargain shoppers.

3. Psychological Pricing Strategy

Psychological pricing has been a common practice in business for centuries, and the technique works just as well in online sales as it does in brick-and-mortar companies. The premise involves that classic practice of not rounding off numbers and usually charging a penny less – such as $19.99 instead of $20. [4]

The benefits of psychological pricing include making the prices fit into lower price bands. For example, there might be groupings of products priced between $300 and $400 or $400 and $500. By pricing a product at $399.99, it fits into the lower band. Walmart uses a unique technique by pricing items at nontraditional prices such as $4.32 instead of $4.39. Choosing not to use the “9” or “8” as the last digit makes people feel that Walmart is charging prices based solely on costs.

Psychological pricing also generates benefits for brick-and-mortar operations. Prices ending in $.98 and $.99 are hard to calculate for employees who want to steal funds with cash-manipulation techniques.

4. Premium Pricing Strategy

The premium pricing strategy works for high-end goods and luxury items because it delivers bragging rights to people who try to buy the best quality goods and services. This strategy takes some company positioning to work successfully. If a company has a history of marketing low-end goods and bargain-priced products, it can be difficult to change the company’s reputation to that of a premium provider. [5]

It’s important to explain why the company’s goods cost more. For example, a restaurant can mention that they use organic produce from local farms and classic preparation techniques, such as the Cajun method of adding raw, sautéed and blackened vegetables to create layers of flavor. That sounds worth paying a little extra, doesn’t it?

Companies might need to retool to target the premium market, but there can be big benefits of doing so. These e-commerce companies earn higher profit margins, and their customer bases remain very loyal when compared to the typical e-commerce customer looking for bargain prices.

5. Bundle Pricing Strategy

There’s a solid reason why so many companies offer bundled products and services. The strategy works because many consumers – and even professional B2B buyers – are influenced by discounts on multiple products. Bundling is an excellent way to sell off slow-moving inventory or products that will soon be replaced with newer versions.

The approach can turn a negative into a positive – for example, a game console is virtually useless without compatible games, but the games cost quite a lot. By bundling the console with several games, parents feel that they’re getting a bargain, but the truth is more likely to be that the games just whet their kids appetites for better and more expensive games.

Most bundle packages make money by giving the customer a mix of desirable products and products that most people will seldom use. E-commerce companies can offer bundles that genuinely benefit the customer, a build-your-own bundle option or bundles that help move dead inventory. [6] Another popular option is to offer several prepackaged bundles to give customers some feeling of choice when receiving an incentive.

How to Manage Pricing Strategies Effectively

How an e-commerce company manages pricing strategies varies tremendously across industries and targeted customers, but the important thing is to consider the psychology. All effective pricing is based on psychological triggers, and companies just need to determine what drives their best customers regardless of whether they’re retail customers or B2B buyers of products for resale.

Some adjustments might be obvious when dealing with retail or wholesale customers. B2B buyers might prefer high-end merchandise or bargain items they can get at a low price. Incentives for buyers might include personal recognition, season tickets to the local sports franchise, product accessories or high-end samples of other products. The most successful companies are able to put themselves into the customer’s shoes so that they can put the customer into their shoes.

 


 

MarketMole provides an up-to-the-minute holistic view of what’s happening in your market, including product pricing, product reviews and trending topics. Our market intelligence tools can be applied to any pages on the web, sending you notifications about stock levels, pricing and competitor pricing, negative reviews, MAP violations detection and more.

Contact us to learn how we can help you save time and make more money.

Learn more about MarketMole and our services.

 


 

References:

[1] Investopedia.com: What Are the 4 Ps?
https://www.investopedia.com/terms/f/four-ps.asp

[2] Investopedia.com: Penetration Pricing
https://www.investopedia.com/terms/p/penetration-pricing.asp

[3] Businessdictionary.com: Market Skimming Pricing
http://www.businessdictionary.com/definition/market-skimming-pricing.html

[4] Accountingtools.com: Psychological pricinhttps://www.accountingtools.com/articles/2017/5/16/psychological-pricingg
https://www.accountingtools.com/articles/2017/5/16/psychological-pricing

[5] Accountingtools.com:Psychological pricing
https://www.accountingtools.com/articles/2017/5/16/psychological-pricing

[6] Hbr.org: The Pros and Cons of Bundled Pricing
https://hbr.org/2010/02/the-pros-and-cons-of-bundled-p

Pricing Strategies for Dropshippers

Pricing strategies for dropshipping follow the basic rule of business: If prices are too high, consumers won’t buy them, and if the prices are too low, e-commerce companies lose potential profit. Using the right pricing strategy is critical because one mistake could cost suppliers lots of profit when people choose another online company or buy only items with a low markup.

What Is Dropshipping?

Dropshipping is the process of choosing products, finding a manufacturer that stocks the product, marking up the price and marketing the product online. Manufacturers and suppliers ship the products directly, and small companies don’t need to bother with storing and shipping products. These dropshipping companies don’t run the risk of carrying or paying for dead inventory, and they can offer a wider selection of products. Manufacturers get free marketing and additional sales platforms for their products.

Setting the Right Price

Prices change rapidly based on market forces, geography and customer demographics. Online global sales reached more than $2.3 trillion in the United States in 2017, which was 10.2 percent of all retail sales. [1] Shopping cart abandonment rates average 75.52 percent globally.

Given those facts, there are strong reasons to fine-tune drop shipping price strategies. It’s important to consider the types of products because luxury items tend to have a higher markup and fewer repeat buyers, but that rule isn’t set in stone. The best overall strategy is to perform regular analyses of sales data and to update prices continuously to align with market trends.

The basic costs of dropshipping include more than just the supplier price. The following list of considerations can serve as a basis for calculations, but dropshippers should add any specific costs that aren’t on the list:

  • Supplier cost
  • Cost of shipping if not added to the price
  • Marketing costs
  • Fees for selling on marketplace platforms
  • Shopping cart fees
  • Fees for using a payment gateway
  • Taxes and currency exchange fees
  • The costs of returns

It’s easy to see that the costs could significantly surpass the costs that consumers pay when buying from the manufacturer directly. Manufacturers and suppliers offer a discount on product prices for dropshippers, but these are usually higher than traditional wholesale prices. [2] The five major strategies for setting drop shipping prices include:

1. Fixed Markup on Cost

Fixed markups are the most common marketing strategy. Dropshippers can add a fixed dollar or fixed percentage amount to each sale. No price remains stable if corresponding product doesn’t sell. The latter approach of adding a fixed percentage ensures that companies receive maximum profit in a rising market. Fixed dollar markups ensure manufacturers cover administrative costs and receive more profit in a falling market.

Lower priced items sell better with a minimum markup because the consumers who buy them are often comparing prices for the best deal. Electronics, which are often priced on the high side when new technologies become available, tend to have lower margins. Unique items, such as decorative items, sell at lower volume but a higher markup.

2. Tiered Markup on Cost

Tiered markup on cost is the best strategy when a dropshipper carries a variety of products with a range of prices from high to low. Decision-makers worry about pricing expensive items out of range by adopting a fixed percentage markup or too low if charging a fixed dollar markup. Tiered pricing sets rules for pricing products based on their overall costs. Small items available cheaply can withstand markups as high as 50 percent while expensive items might be competitive and profitable with only a 5 percent markup.

Companies that develop comprehensive pricing rules and special tiers can enter the information into automatic pricing software or monitoring apps to keep current with pricing trends.

3. Manufacturer Suggested Retail Price

Manufacturer suggested retail price, MSRP, seldom impacts the prices of products in companies that compete on price. Suppliers that compete on service, luxury goods and brand reputation make better candidates for MSRP. Small shops often use the MSRP to avoid price wars and to maintain a suitable profit margin.

4. Mark-Down from MSRP

Marking down the MSRP is a common strategy for pricing items. Many small companies believe that offering a discount over regular prices is the primary reason that some people order online. The psychological appeal of a discount counters the appeal of touching and examining a product in a brick-and-mortar store. If a company can offer a 20 percent discount on the MSRP price, that creates a significant discount that appeals to many people.

The downside is that many sellers discount the MSRP price unless the manufacturers implement minimum advertised price restrictions. Although the MSRP might be $99.99, if the product is commonly available at $69.99, there will be no compelling advantage by discounting the product 20 percent.

5. Psychological Pricing

Psychological pricing is common because all sales depend on the customer’s need or desire and psychological factors. The most common psychological factor in pricing is using .99 or .98 instead of rounding the price to a simple, whole-dollar price. The numbers 5 and 7 are also commonly used. Dropshippers can also use lower numbers to undercut competitor prices. If they use .95 at the end of prices, companies could use .47, .29 or even .09.

Research shows that the number “9” reigns supreme as the most psychologically pleasing price for products according to an MIT and University of Chicago study. The study even found that items priced at $39 outsold products priced at $34. [3] Costly status items sometimes do better with round numbers. People often prefer to use phrases such as “I paid two bills” or “3 Gs” for a given item.

Psychological influences don’t just apply to customers. That’s why many dropshippers apply a fix dollar amount to orders. An item costing $2.00 would only generated $0.40 by adding 20 percent, which wouldn’t cover processing charges. Using a combination strategy of adding a fixed $3.00 markup to every order and a sliding-scale percentage, dropshippers can cover the administrative costs and receive a reasonable profit. The low-end items might be exempt from additional charges, and the high-end items would receive a progressively smaller percentage of markup.

Common Sense Pricing

There must be room to make pricing exceptions because not all products perform the same. That’s why it’s important to review prices before publishing them online to catch any glaring errors caused by automatic price calculations. Setting rules for pricing only works if the company follows these recommendations:

  • Review all prices regularly.
  • Compare prices with those of leading competitors.
  • Set discounts for new products as a market penetration strategy
  • Monitor sales stats, churn rates and customer browsing behavior.
  • Test and revise the price of any item that doesn’t sell up to expectations.

The Dropshipping Business Model

Dropshipping requires careful monitoring to be successful when consumers typically order from Amazon and get their products shipped to them as soon as 1 or 2 business days. Dropshippers can counter that advantage by providing personalized customer service and carefully considered prices. Dropshipping allows aspiring entrepreneurs to enter the e-commerce market without a lot of experience or capital, but business owners can’t cut corners by skipping standard business services and ordering conveniences.

 


 

MarketMole provides an up-to-the-minute holistic view of what’s happening in your market, including product pricing, product reviews and trending topics. Our market intelligence tools can be applied to any pages on the web, sending you notifications about stock levels, pricing and competitor pricing, negative reviews, MAP violations detection and more.

Contact us to learn how we can help you save time and make more money.

Learn more about MarketMole and our services.

 


 

References:

[1] Blog.dsmtool.com: 21 Incredible E-commerce Stats From 2018
https//blog.dsmtool.com/incredible-ecommerce-stats-2018/

[2] Saleshoo.com: The True Cost of Drop Shipping: 16 Top Questions Answered!
https://www.salehoo.com/blog/drop-shipping-cost

[3] Shopify.com: Pricing Strategy: 10 Ways to Find the Perfect Price for Your Products
https://www.shopify.com/blog/pricing-strategies”>https://www.shopify.com/blog/pricing-strategieshttps://www.shopify.com/blog/pricing-strategies

Price Monitoring for Enterprise Businesses

Price monitoring software becomes increasingly important in today’s competitive marketing environment. Marketing and product managers need to price products competitively based on market forces and trends. It’s also important to track what prices your business associates are charging in marketplace platforms such as Amazon, eBay and industry-specific marketplaces.

Enterprise businesses are organizations that want to build brands and create new markets, and these companies face some extreme challenges such as managing competitive pressures, identifying opportunities and threats and providing the kind of enhanced customer experience that consumers and business buyers demand. Artificial intelligence and automated monitoring are increasingly important technologies for dealing with the demands of today’s business operations.

We offer our Market Mole software to monitor prices for you automatically. Marketing and product managers today face an increasingly complex job to stay on top of prices and to manufacture or order products with just-in-time efficiency. Companies need to limit external risks that arise from unauthorized sales and vendor prices that are too high or too low.

The Signature Benefits of Price Monitoring

Keeping track of prices across multiple sales platforms, wholesale and retail operations and online and brick-and-mortar sales platforms can be challenging without automated technology. Automated online price monitoring offers the following benefits for B2C and B2B sales organizations:

  • Fine-tuning Supply and Demand
    It’s easier to determine market trends, temporary pricing spikes and emerging threats to sales when you automate your price-monitoring activities.
  • Providing Customer Access to Business Intelligence
    You can offer your customers self-service features using automated connections with business intelligence resources.
  • Optimizing Product Variations
    You can track prices and sales of product variations to fine-tune your sales efforts and increase conversions.
  • Maximizing Profit
    Price monitoring is the best way to maximize your profit margins and to prevent overcharging or undercharging.
  • Automating Prices
    You can automate your prices to offer special incentives, bulk pricing tiers and dynamic pricing for B2B customers.
  • Monitoring Your Business Associates
    More and more companies sell their products in multiple forums such as marketplace platforms like Amazon and through affiliate marketing. However, business associates sometimes charge prices that are too high or too low. You can track the prices that your partners charge and find out instantly if your associates are violating contractual terms, selling products illegally or creating a PR nightmare by undercutting your prices.
  • Responding to Market Changes Instantly
    The e-commerce landscape evolves at lightning speed as retailers and wholesalers offer dynamic pricing, modify prices and offer discounts and sales incentives. Retailers often undercut the prices of their competitors and inadvertently sabotage the sales of their own manufacturers. Monitoring prices automatically prevents all kinds of surprises and enables companies to respond quickly to new information that could affect brand value.
  • Preventing Unauthorized Sales
    Many sellers employ questionable marketing tactics such as selling unauthorized products. Companies will often buy your products from other retailers as loss leaders to attract big buyers to their websites. Monitoring software can find these grey-market sellers no matter where they try to hide.
  • Detecting Operational and Compliance Risks
    The internet is vast, and manual monitoring becomes increasingly impossible. Better online price monitoring can detect exposure risks and compliance violations – of your own brands and those of your competitors.
  • Streamlining Operations
    Some repetitive jobs – such as monitoring prices – are essential but troublesome for companies. Low employee morale is a major problem when your staff members monitor prices and compliance manually. Labor costs are also increasingly prohibitive for monitoring multiple sales platforms, competitor websites and stakeholders. The right monitoring software can automate, simplify and streamline business operations.
  • Triggering Alerts
    Price monitoring software can ensure that jobs are never run out of sequence, forgotten or subject to manual errors. The data are always validated and kept current. When unusual situations are detected, special process can be automated. The software can also trigger alerts when staff input is needed.

Price monitoring requires a special skill set, and staff members need to make quick decisions and solve complex problems frequently. Unfortunately, monitoring staff spend most of their time pushing buttons and performing error-prone jobs. Monitoring applications can eliminate most errors and speed decision-making without the mind-numbing tasks required by manual processing. Your employees will be happier and more efficient while enjoying greater job satisfaction.

Excuses for Not Automating Are Seldom Cost-Effective

Many key decision-makers worry about the costs of monitoring software, but automation can increase productivity, performance and availability while reducing overall operating and labor costs. Excuses for not automating include:

  • Budgetary limits
  • Too many development Issues
  • Decision to develop an in-house system
  • Concerns about eliminating the jobs of loyal employees

The right software can be surprisingly affordable. For example, our Market Mole price-watching software can monitor prices to ensure that your vendors aren’t dropping prices too low and that unauthorized companies aren’t selling your products online.

Our expert advice and customer service can reduce any development problems and generate unexpected business opportunities so that you can quickly recover your initial investment. We understand your needs and concerns, and we work collaboratively with you to support your goals.

Employees tend to view automation as a direct threat to their jobs, but savvy companies understand the importance of encouraging staff participation in any development project. If you help your employees to “own” the developments, you’ll have fewer problems implementing automation software. Disgruntled and determined employees can defeat any implementation with subtle acts of sabotage, so it’s important to explain why automation is critical for future job security.

Your employees can learn to monitor automation software in company positions of greater authority and increased responsibilities. Staff members can spend more time on core business activities and customer service.

In-house coding and development might be successful, but the focus is usually too narrow for long-term success. More and more companies integrate their software applications to run features for end users, customers and staff. Maintenance and upgrades can interrupt workflow, cause unexpected problems and generate expenses that offset any initial savings. That’s why professionally tested and debugged software is usually the most affordable and efficient choice.

Machine Learning Takes an Expanded Marketing Role

Artificial intelligence programs now command a great deal of marketing and monitoring tasks for businesses – both retail and wholesale. Data engineers can build intuitive software that’s capable of machine learning. The software can monitor online prices because of increased pricing transparency. You can find out whether you’re charging more or less than competitors and adjust your prices to be more competitive.

You can also use price monitoring software to enable customer-facing features such as dynamic pricing where you can negotiate prices with wholesale customers directly. Your customers can enjoy dynamic pricing even when using self-service so that you never lose a sale because of pricing inflexibility.

Extraordinary Operational Savings Generated by Monitoring

Advanced machine learning can detect new threats and opportunities based on your business model. Your company can expand sales, cut staffing needs and reduce costs with intuitive software that learns more about your business each day. The software can handle increasingly complex jobs based on the parameters that you set. These tasks include automating backups, increasing communication options, identifying threats, releasing jobs and providing intelligence to customers and end users.

Human error is a big problem in today’s digital processing. Boring, repetitive jobs can result in manual entry errors, duplicate data and slow responses. Automation ensures that monitoring is never forgotten or put on the back burner. Market Mole software is one solution that we hope you’ll explore – but regardless of your choice – we strongly recommend that you automate your price-monitoring activities to stay competitive in today’s digital marketplace.

 


 

MarketMole provides an up-to-the-minute holistic view of what’s happening in your market, including product pricing, product reviews and trending topics. Our market intelligence tools can be applied to any pages on the web, sending you notifications about stock levels, pricing and competitor pricing, negative reviews, MAP violations detection and more.

Contact us to learn how we can help you save time and make more money.

Learn more about MarketMole and our services.