Your competitors are tempting your customers every day with aggressive pricing and compelling offers. Your customers are shopping seamlessly, without borders and across every channel.
How can you know if your current sale prices are competitive in the market or if on the contrary you should adjust them?
Currently there are companies in the market that provide information pricing data. In this way, many distributors use this data to systematically and indiscriminately adjust their sales prices according to the price changes made by their competitors.
What is the problem with this way of acting, which on the other hand is very common in the automotive aftermarket?
Well, we are reducing our sales margins by the simple fact of comparing ourselves with our competitors, regardless of whether our customers can:
Do not buy us more products because they do not really need them.
Consider that our prices are already competitive and they would continue to buy them without having to adjust the sale price.
How can we know if our sales prices are optimal or not and not have to adjust them systematically and indiscriminately according to our competitors?
The demand data analysis can deliver a powerful impact on pricing decisions with incredible sales improvements.
By comparing the demand level of any product with its sales level you can identify two clear scenarios where its ROI can be clearly improved:
High-priced: typically these are non competitive products where ratio between its sales level and demand level is very low. If we adjust the sales price, sales will go up because there is a higher demand.
Low-priced: typically these are products with very low price where ratio between its sales level and demand level is very high. If we maintain or raise the price slightly, the sale will not decrease.
Pricing is top priority for shoppers and it’s your biggest margin level. In an era where pricing strategy must be technology enabled, now is the time to improve your approach to pricing by uncovering new ways to drive greater profits and accelerate your growth strategy.
Market Expert: Demand-driven assortment planning platform for automotive aftermarket parts