The next step after manual pricing in Excel is the rule-based model that relies on rule compliance to recommend new prices. Competera offers our clients the following set of standard repricing scenarios to use.
Basic repricing scenarios
- Setting the price at the minimum / median value among competitors, with notifications (alerts) if the new price differs from the old one by 25% or more.
- Setting the price at the minimum / median value among competitors minus 1 monetary unit, with notifications if the new price differs from the old one by 25% or more.
- Setting the price at the minimum / median value among competitors minus N%, with notifications if the new price differs from the old one by 25% or more.
- Setting the price at the minimum / median value among competitors, with a minimum level of mark-up or margin (e.g. 3%).
Note: The client needs to provide their purchasing prices (costs) to use this scenario. - Setting the price at the minimum / median value among competitors, following the recommended price (MAP) of the vendor. If the MAP is higher than the minimum / median price, the recommendation is to set the MAP price.
Note: The client needs to provide Minimum Advertised Price (MAP) for each product to use this scenario.
Advanced repricing scenarios
- Setting the price at the level of one of the competitors, if the item is in stock. If the product of this competitor is not available (out of stock) - we set the price at the level of the second competitor by priority, if there is no second competitor - then we use the third one etc.
A variation of this scenario, when there is only one key competitor: if the product of this competitor is out of stock - we set the price at the level of the minimum / median price of the other stores. - Setting the price at the level of the key competitor, but if the given competitor has a promo activity (gift or discount), we put the price -N% / minus N monetary units from the price of this competitor.
- Setting the price for KVI items / bestsellers cheaper than the minimum price among all the competitors by N% but with the minimum level of mark-up/margin.
Note: The client needs to provide their purchasing prices (costs) to use this scenario.
The KVI / bestseller products should be tagged respectively in Competera. - If the competitor's minimum price is lower than our cost, assign a notification (alert) "non-competitive cost" and suggest setting a price with a minimum level of mark-up/margin.
Note: The client needs to provide their purchasing prices (costs) to use this scenario. - Setting the price at the minimum value among competitors. But if the sales dynamics exceed the number of items in stock - we apply a less aggressive scenario, for example, setting the price at the median value among competitors, with notifications (alerts) "the sales dynamics exceed the stock."
Note: The client needs to provide their sales and stock data to use this scenario. - If a certain product is not sold for N days, the repricing rule will assign a notification (alert) "low sales dynamics" and set the price -N% from the current price.
Note: The client needs to provide their sales data to use this scenario. - If a product is not found on the competitor’s website for N days (number of matches = 0), the repricing rule will assign a notification (alert) "The product is not on the market" and suggest reducing the price by M%. With the subsequent absence of the product on the market for N days - the rule will suggest reducing the price by an additional M%, up to a minimum mark-up/margin of L%.
Note: The client needs to provide their purchasing prices (costs) to use this scenario. - Setting the price at the level of the N-th minimum price from the list. Thus, all the competitors’ prices are sorted in descending order and the rule suggests following the N-th minimum price. This rule is applicable when the manager does not want to dump prices but prefers to keep the marginal revenue and be competitive enough.
- Setting the competitive price depending on the price category of the item. For example, for the products with a price tag of $200, a manager may set the price at the lowest price among the competitors minus $10. While for the goods with a price tag > $1000 the rule suggests setting the price at the median price of the competitors minus $50. This scenario takes into account the sensitivity of customers to price-points and price segments.
Note: all the given numbers are imaginary and may vary in a real case.
If you would like to set up any of the above repricing scenarios or a custom one in your dashboard, please contact us at support@competera.net.
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