In today’s most competitive era of e-commerce, the purchase decision of potential customers relies mainly upon the price of a service or a product. The most vital need of entrepreneurs or businesses is to choose the best suitable pricing strategy for their e-commerce store. In this scenario, trial and testing on the basis of production costs, market forces, or customer value is beneficial. Following are some pricing strategies for your business so that you could opt for the best suitable for tackling competitive pricing.
- Cost-Based pricing – This strategy is quite appealing since it covers both overheads and production costs along with guaranteeing profit. The total cost is obtained by adding up your production cost and desired profit.
- Market-based pricing – After analysis of competitors’ prices, the retailers finalize a higher, lower, or same price of their products focusing mainly on prices of similar products rather than production cost.
- Dynamic pricing – This competitive pricing strategy is considerably proactive where changes in market demands are observed keenly by businesses to adjust their products’ prices. This strategy is mostly compatible with e-commerce.
- Bundle pricing – In this strategy, several complementary products are sold as a single package where the bundled price is lesser than the sum of prices of separate products sold individually.
- Consumer-based pricing – In this strategy, the company sets prices by ensuring that customers would pay those prices according to the perceived value of their products.
To cope with ever-evolving technologies and techniques and to keep track of product prices and the perception of brands, the concept of price monitoring software is introduced to highly drive sales, aftermarket parts price management.
MAP Monitoring Software
MAP is the abbreviation of Minimum Advertised Pricing which is generally a deal between manufacturer, brand, and distributors which refers to the lowest possible rates of a product. Once the agreement is finalized, sellers would not be allowed to offer a lesser price to merchandise than the one being agreed upon. This is controlled and tracked by MAP monitoring software, all you have to do is to set the rules for the software to keep track of. Following are some reasons to use minimum advertised pricing monitoring software for your e-commerce stores to drive sales at a higher rate.
- To explore unauthorized sellers – After the pandemic, some vendors took advantage of the situation and tried to sell similar products at a much lesser price. MAP assists in identifying unlicensed vendors and allows you to monitor whether your product is being sold by your official distributor or not thus protecting your brand integrity.
- Controlling discounts – Usually, it is being observed that when one seller offers a discount, their competitors will follow the same strategy. minimum advertised pricing monitoring software assists in understanding the current prices of similar products. By determining the lowest cost and obliging your distributors to follow the instructions, protection of your brand as well as of vendors is guaranteed.
- Boosting your business – By using this software you can observe your weak distributors, end their collaboration or increase their value and award the strict guideline followers thus, effectively leading to a higher sales rate.
