At Pricing Assistant, we help e-tailers and brands to optimise their online pricing strategy with our price monitoring solution.
In the majority of cases, 5 minutes per day is enough for our users to respond to the main market movements and identify the most compelling price increase opportunities.To quantify the impact of these 5 minutes per day, we recently conducted a study on a sample of 60,000 price changes in the French e-commerce sector over a period of 6 months. We found two very strong trends
#1 When a retailer drops its price and becomes the cheapest in the market for a given product, its sales increase by an average of 46%.We also observed a very clear inverse effect in in our statistics: when a competitor replaces another as the cheapest in the market, sales for the latter fall by an average of 49% unless they rapidly realign their pricing. Of course, these figures are averages, there are strong variations within them, due in particular to the relative importance of a given competitor.
This is one of the reasons Pricing Assistant is so useful for e-tailers: our price change alerts allow them to not only respond to changes in the market in real time but also to determine which of their competitors are most relevant to them.
However, we take no sides in the price wars. Aligning one’s prices downwards is not always the right strategy. On the contrary, Pricing Assistant allows you to easily identify price increase opportunities, as shown in the second trend in our study:
#2 It is possible to increase your margins by an average of 15% through smart price increases.
The most common price increase strategy among our users consists of raising prices in relation to their next most popular competitor, such as half price. Here is a real-life example:
In this case, petit-site-outils.fr does not present a significant threat, so prices can be increased to €4.99 without a major impact on sales. Within the last 6 months, we have seen an average improvement of 15% in the margins on products using this strategy!
What are you waiting for?
All these steps can be carried out in just 5 minutes a day. Ask us for a personalized demo of your products today!