One of the tasks facing any retailer is setting the price. At first glance, it seems easy enough. But in reality, retail pricing is a complex process consisting of a range of interconnected steps. 

It is almost impossible to deal with the issue of setting prices on your own. To do this, people often hire marketers, analysts, and other specialists. There is a more modern solution – the use of price management software. Convenient online platforms allow you to automate a number of processes. Due to this, it becomes possible to increase the efficiency and profitability of business.

Pricing in retail: the specifics of the process and its main stages

The complexity of setting the price for a particular product or service is as follows: it is important to carry out deep analytical work. Since any retailer interacts directly with the buyer and not as an intermediary, he needs to be able to offer the best conditions and an acceptable price.

As such, pricing is a process that allows you to understand how much is optimal. It is often divided into several steps, among which:

1. Comprehensive analysis of pricing factors.
2. Setting goals.
3. Choosing a method that corresponds to the peculiarities of the situation. 
4. The formation of a single strategy followed by the development of appropriate tactics.

During the final stages, there is actually a plan for the implementation of the goal. It is not enough to make all analytical measures at once, because the situation on the market is constantly changing, it is necessary to make adjustments.

The importance of pricing for retailers

Some retailers choose not to delve into the details of the pricing process. Some simply “make up” the cost of the product, while others focus on their competitors and set the price in roughly the same range.  

However, they are losing a lot of opportunities. Understanding the importance of pricing in general and the role of competent strategy, you can significantly succeed in retail. One step on the way to business success is a responsible and competent approach to the pricing process (for example, using special software that includes a set of necessary options). As a result it is possible to:

• increase sales quickly and without financial losses;
• raise the level of trust of regular customers and attract new ones;
• increase the retailer’s brand awareness and generate interest in other products it offers.

In addition, if the pricing process has been conducted carefully and meticulously, the retailer can become more popular. This is a real opportunity to leave competitors behind.

Mistakes in the price formation process and their consequences for the retailer

Quite often retailers make mistakes in pricing, which can be categorized as typical. Most of them are related to the lack of necessary knowledge or sufficient attention to this issue. Such mistakes include:

1. Lack of a clearly formulated strategy and understanding of the indicators that will confirm its effectiveness.
2. Errors in the available information concerning input control or the absence of a unified system for controlling this information (for example, incorrect information on the procurement price or no supporting document at all).
3. Superficial analysis of external factors. Difficulties in the comparative analysis of competitors arise particularly often in the absence of proper experience in the price formation process.

This is only a part of widespread mistakes which can be made at the price formation. Regardless of what kind of mistake the retailer made, the consequences will be extremely negative. For example, it is possible to face large financial losses. In addition, there is a risk of losing not only several customers, but also the reputation built up over the years. 

Using an online platform: how the automation of processes helps to increase the effectiveness

It often does not make sense to have a whole staff dedicated solely to price formation. You can ask for the services of a specialist, but one-time help will give only short-term results. 

This is why an increasing number of retailers now use special programs in their work. Such services use automated algorithms, which allow for a comprehensive analysis of factors and establish the optimal cost at the current moment. Constant use of the service is an opportunity to make timely adjustments and achieve results.

Features of Competera online platform

One of the best online platforms for retailers today is Competera. This is a universal solution that is suitable for any business, regardless of its volume, scope of activity and other factors. Among the features of the service you will find:

1. Suitable for both online retailers and those who work offline. 
2. Allows you to quickly and efficiently collect all the data for analytics using ready-made smart algorithms. 
3. Possibility to reduce any “manual” work on the part of the manager. At the same time, it is not difficult to understand the principles of the service, most of the processes are automatic. 

The online platform is constantly developing, for example, relatively recently it has been possible to solve a number of retail problems using artificial intelligence. The implementation of innovative algorithms shows amazing results and can be a real breakthrough in retail pricing. 

Ready-made business solutions from professionals – reliable helpers on the way to success

Service offers a number of ready-made solutions, which are related to pricing in retail and are adapted to the peculiarities of a particular industry. Among the wide variety of ready-made solutions there are options for retailers who sell all kinds of goods (building materials, pet supplies and much more) and work in different areas. 

All you have to do is choose the version that meets the needs of a particular retailer. You can start using it right after you connect to the platform. If necessary, the consultant of the company will help to understand everything. 

Conclusion

The issue of price formation is especially important for any retailer. But at the same time, pricing is a complex process that requires taking into account all sorts of nuances. 

You can try to figure it all out yourself or hire a team of professionals, but using online platforms like Competera is a more modern solution. The automation of processes allows you to free up time and achieve the desired results.