The development of a list of prices it is a challenge that every retailer needs to be addressed. The analysis of retail has solutions to facilitate this task and to do it in a smart way. Below we will tell you how.
When developing or updating the list of prices should be taken into account that provides value to the customer and that it will be profitable for the company. It is a strategy win-win that seeks to both parties can leave benefit and happy.
Analytics of retail, with your measurements, calculations, predictions and comparisons, provides the tools to achieve this. A store-based data, you will have attractive prices strategically placed, which may vary depending on the circumstances.
Use of KPIs
The key performance indicators (known by its acronym in English, KPI) to show the progression of the business in specific areas. By using them, you can take a multitude of decisions for the benefit of the store, among them, the price they will have the products.
One of the KPIs most widely used is the net margin, which measures what is the profit that is generated on each peso ($) to enter. Taking into account the costs behind each sale in order to avoid over-estimating the profitability and be able to decide what the right price of the product.
Evaluation of promotions and discounts
Based on the decision of the optimal price, the computer systems developed for the analysis of retail and business intelligence provide important information to increase sales. They do so taking into account discounts and promotions associated with each brand and/or product.
This allows the retailer will greatly reduce the time it would take to perform these operations manually. Although, of course, the analytics retail only gives options and the final decision will be the responsible of the store.
Relationship with the visual merchandising and psychological factors
The decision of what price to put on a product, sometimes it has to do with psychological issues that have been studied for years. This has an intrinsic relationship with the visual merchandising and the way you present the products in the shop, so that no decision should be taken in isolation without taking into account a holistic look at the business.
For example, it is shown that the average consumer is attracted by the prices end in “9” and when incorporated will greatly increase the sales. Although only save weight, the customer will be much more willing to pay $29 to $30.
Compared to the competition
To be successful it is essential that the prices of the shop itself will always be the lowest, because other factors influence the good experience of purchase of the client. But nor is it an issue to let go of.
The analysis of retail allows you to take into account not only internal factors of the store, but also what is the general overview of the market in relation to price. So you can be prices that are attractive to capture the attention of the customers.
A safe investment
As seen in the examples mentioned above, the development or updating of the listing price does not obey only to issues of economic nature (which, of course, are fundamental), but many factors must be of the most varied. The sum of these, if interpreted correctly, can make the total profit of the store increase significantly.
The analytics retail puts at the disposal of the manager of the store a number of tools that will allow you to make the best decision on the price of each product. The investment that you make in the equipment necessary for this one (which may include sensors counters of people, software and consulting professionals) you'll no doubt see its fruits.
