Repricing scenarios available in Competera

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

1. 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.
   
   
2. 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.
   
   
3. 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.
   
   
4. 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.
   
   
5. 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

1. 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.
   
   
2. 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.
   
   
3. 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.
   
   
4. 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.
   
   
5. 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.
   
   
6. 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.
   
   
7. 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.
   
   
8. 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.
   
   
9. 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.