As a pricing manager, you understand the need to remain competitive in a saturated market. However, limited insights into the competition make it difficult to optimize pricing. The competitive data reports provided by wholesalers or distributors offer a limited view of the market because they determine which retailers to include in their reports. This means that if they send you data for a retailer you don’t want to compete with, you’ll lack visibility on the rest of the market and won’t be able to obtain a comprehensive understanding of the competitive landscape. This can result in many pricing managers relying solely on such data, which may not present the full picture.
Thankfully, the Intrics Intelligence Platform is here to help. This powerful tool allows pricing managers to benchmark against various competitors and identify pricing opportunities. By comparing prices with multiple retailers, pricing managers gain valuable insights into their competitive landscape, enabling them to adjust their pricing strategies accordingly.
Increasing revenue to offset rising costs of goods without sacrificing sales is a top priority. When you compare your prices against Retailer 1, either through your distributor’s data or within Intrics IP’s Competitive Tracking, you see that almost 83% of your items are priced higher than theirs. You want to be methodical in the items you raise prices on, but the competitive data you see most often against leading retailers is suggesting that you lower prices on everything, which is unreasonable and doesn’t allow you to meet your goals.
With Intrics Intelligence Platform, you can compare your prices with those of your competitors and discover areas where you can optimize your pricing strategy. By analyzing multiple competitors, you can uncover potential pricing opportunities that you may have missed otherwise.
Intrics provides a comprehensive overview of how your products stack up against others in the market, giving you multiple tools to help identify pricing opportunities. Armed with this data, you can optimize your pricing strategy to drive sales and profitability.
To illustrate how Intrics helps pricing managers make informed decisions that drive revenue, let’s consider a hypothetical scenario. Suppose you want to increase sales and profitability. You’ve been using Intrics to monitor your competition and have identified two major retailers in your market: Retailer 1 and Retailer 2.
Optimizing Pricing Strategies for Pricing Managers with Intrics’ Insight Basket
The Intrics platform’s Basket Performance tool allows pricing managers to compare baskets against multiple retailers, including Retailer 1 and Retailer 2, the two biggest competitors in the market. This tool helps pricing managers to identify underpriced items compared to specific competitors, which opens up opportunities to increase revenue by adjusting prices on these items.
You can gain better insights into your competitive landscape by using Intrics’ Insight Basket in the Basket Performance tool to compare prices with multiple retailers, such as Retailer 1 and Retailer 2. The Insight Basket is based on a national KVI list against average market prices, providing a comprehensive overview of how your basket competes against all retailers in the market.
The business is comparing the KVI Basket performance to 12 of the 26 national retailers that Intrics collects data on in our Basket Performance by Retailer tool in the Competitive Tracking module. However, the company is mainly focusing on Retailer 1 and Retailer 2 since they are the two biggest competitors in the market.
After analyzing the pricing strategy against Retailer 1, it was discovered that their prices are lower than 83% of the company’s items. When looking at the average index across all retailers in Intrics’ scope, businesses may find that their prices are lower than most of their competitors on average. This insight is significant because it suggests that while there may be opportunities to adjust individual prices, lowering prices across the board is unnecessary to remain competitive.
Identify Where to Make Price Adjustments Using Basket Performance by Focus Retailer
With Intrics’ Competitive Tracking module, you have the ability to compare prices on a per-item basis. The Basket Performance by Focus Retailer feature helps you narrow down to specific retailers, such as Retailer 1 and Retailer 2. This allows you to pinpoint which items are overpriced and adjust your prices accordingly to stay competitive in the market.
By utilizing Intrics to compare with Retailer 2, you can pinpoint items that your company is pricing too low. This enables you to adjust pricing strategies for those particular items, ultimately increasing prices without discouraging customers from buying. This approach can enhance revenue and competitiveness, all while staying in line with market trends.
In this hypothetical scenario, you discover that Original Lightly Salted Pringles Potato Crisps are underpriced compared to Retailer 2. Your price is $2.44 and indexed against Retailer 2 at 80.6. Intrics provided an average competitive price of $3.03 for this item, with a maximum competitive price of $3.49 and a minimum competitive price of $2.49.
Using Intrics to analyze the competitive landscape, you have identified an opportunity to increase the price of this specific item while remaining competitive against Retailer 2. If you want to stay just below the average competitive price, you can adjust the price to $3.01 (for more tips on how to use Intrics to test out prices, check here). This represents a $0.57 increase per unit, which is a significant boost in weekly revenue for that single item.
By solely focusing on Retailer 1, we would have overlooked the fact that Original Lightly Salted Pringles Potato Crisps were undervalued in comparison to the market. The product had an index of 108.7 with an average competitive price of $2.25, which may have caused us to believe that we needed to decrease our prices for this item. Upon conducting a more thorough analysis using Intrics’ Competitive Tracking tool and Basket Performance by Focus Retailer feature, we discovered that other market competitors were selling this item at a significantly higher price, enabling us to adjust our pricing strategy accordingly.
Pricing Managers’ Favorite: Alert Tool Helps You Stay on Top of Pricing Opportunities
Competing in a tough market requires accurate pricing. The Intrics Intelligence Platform boasts a useful feature called the Alert Builder, which empowers pricing managers to create alerts depending on either competitive prices or price gaps. It’s crucial to choose the right retailers to compare your pricing method against when setting up alerts. For instance, if Retailer 2 caters more to your target demographic, it would be wise to set up price alerts based on their pricing rather than Retailer 1.
Using the Alert Builder tool within the Intrics Intelligence Platform, you can filter by KVI basket and Retailer 2. You can then customize when and how those alerts are triggered, such as receiving a notification when Retailer 2’s effective price for any item in your KVI basket changes by more than 5%.
With this customized alert in place, you’ll always stay ahead of significant price adjustments made by Retailer 2 for your most important products. This information empowers pricing managers to make data-driven decisions and adjust pricing strategies in real-time to remain competitive.
Overall, the Alert Builder feature within Intrics Intelligence Platform provides pricing managers with the flexibility to customize alerts based on specific retailers and products. This targeted approach allows pricing managers to make more informed decisions and stay competitive in a saturated market.
