Enhanced Competitive Pricing Analysis
Competitive pricing analysis is critical to the success of many businesses and ecommerce sites. Google provides price competitiveness reporting to help sellers learn how others are pricing the same products that they offer. Where data is available, Google provides a benchmark price for comparison and whether a seller’s price is above, at or below benchmark. In an ideal world, all of a seller’s products would be at or below the benchmark price. Google also provides a high-level view to inform sellers what percentage of the universe of reported products have been reported to be above, at or below benchmark.
Flatiron Solutions starts with the competitive pricing data from Google at the product level and incorporates cost and inventory data from Point of Sale (POS) systems and/or Enterprise Resource Planning (ERP) systems to provide actionable reporting. Our custom tailored reports list products by their price competitiveness ranking and by the quantity on hand or other metrics. A product with deep stock that is even slightly overpriced is pretty much the worst case scenario for this reporting. A product that is not heavily stocked, with only a few on hand, and slightly overpriced still could be a problem if it has a higher wholesale cost and retail price.
Combining inventory data with cost data and competitive pricing makes for informed decisions. One of our clients used this reporting to dramatically improve their overall competitiveness in the marketplace. In just weeks they went from almost 48% of their products above benchmark pricing to almost 80% of their products at or below benchmark pricing. It came as no surprise that their online sales also improved as a result.
If your organization needs help with its competitive pricing analysis, we would love to hear from you.
