Pricing can make or break a product’s profitability, so it’s crucial to get it right. But in a constantly changing market, knowing when to change your prices and at what rate can be challenging. Fortunately, with the right data analytics tools, you can stay on top of your price strategy and make necessary adjustments at the right time.
Intrics Intelligence Platform’s Basket Builder helps businesses of all sizes refine pricing strategies. With real-time insights, retailers can adjust pricing according to market trends and stay ahead of the competition.
Let’s explore a real-life example. We can leverage the Basket Performance report in the Competitive Tracking module to identify when we need to make pricing changes. We will then explore the Extract and Manage My Data features to determine the right price for our products. Finally, we will create a new basket of KVI items with updated pricing to compare the previous prices in our Basket Performance report to see how they perform in the market.
Step 1: Basket Performance
The first step is to check out our Basket Performance dashboard in the Competitive Tracking module within the Intrics Intelligence Platform. At a glance, everything seems fine, and we might not even think any price changes are necessary. However, when we dig a little deeper and look at individual items on a UPC level in the Basket Position over Time report, we see that we need to make adjustments.
Step 2: Extract Data & Make Price Adjustments
The Intrics Intelligence Platform empowers clients with full control over pricing decisions while seamlessly integrating with internal processes.
With the Extract Builder, we can set up custom reports to extract prices with a specific market or competitive set, enabling us to calculate the optimal sales price for our products. We could also import extracted data into any price management tool to calculate the optimal sales price.
Step 3: Test Our Prices
Once we have an idea of what changes we want to make, we test the new prices to see how they impact our overall basket index. To do this, we go to the ‘Basket Builder’ under the ‘Manage My Data’ tab. We simply enter our test prices in the ‘Custom Reg Price’ column to try them out before we make any permanent changes. Note: We can also test promotional prices by entering our discounted price in the ‘Custom Promo Price’ column.
Basket Builder helps us make informed pricing decisions by simulating the impact of potential price changes on overall basket performance.
Let’s take a look at the impact of our price changes on our KVI basket. Most of our items were indexing around 130, but there were a few instances where some items were priced too low and indexing at around 90. This misalignment with our pricing strategy could result in lost sales opportunities. Therefore, we analyzed our prices and made the necessary adjustments to bring them closer in alignment with our strategy.
Above, we see that our price adjustments brought items that were indexing to high or too low back in line with our strategy. This approach ensures that our pricing remains competitive, and we are offering our customers the best value for their money.
Additionally, we see high volatility over the past 8 weeks in egg prices as prices continue to fluctuate from an earlier egg shortage. To stay ahead of market trends, prevent losses, and avoid past mistakes, it would be wise for us to set an alert for any egg price changes. We will then be alerted when competitors move on egg prices and we can promptly react and avoid a repeat of past mistakes.
Step 4: Finalize Price Changes
Our test prices are doing well, so it’s time to make price changes official. Under ‘Manage My Data’ module, we go to ‘My Catalog’ and export our items. We simply replace prices we want to change and then save and re-upload the file back into the Intrics Intelligence Platform. Just a heads up – Changes will be permanent, so you may want to create a backup file with previous data just in case. Once the platform updates to reflect our new prices, our competitive alert rules and dashboards will automatically sync up with your newly adjusted prices, keeping our pricing strategy on point and up-to-date.
Conclusion:
In conclusion, refining pricing strategies using the Intrics Intelligence Platform is a powerful way to help businesses optimize their pricing strategy. By examining the KVI basket’s performance, the Basket Position over Time dashboard, and extracting and managing the data, retailers can identify the optimal product price and monitor the success of their pricing strategy. Furthermore, creating a new basket with updated pricing allows businesses to evaluate the impact of the new pricing strategy and implement any necessary fine-tuning before those prices hit the shelves, and alerts can help us stay on top of market price changes so we can respond quickly.
With the tools of the Intrics Intelligence Platform at their disposal, any grocer can make well-informed pricing decisions, offering their customers great value without leaving money on the table, ultimately leading to business growth.
![[Screenshot of Basket Position Over Time in Intrics Intelligence Platform][Text Reads]The average index for the entire basket is resting at 108.7, but when we look at the basket on an item level, there are a lot of items that are indexing above 140 and below 90, which means we need to adjust our item prices to get closer to the 100 mark - even if that doesn't drastically change our average.](https://intrics.io/wp-content/uploads/2023/06/111-1.svg)
