If you want to be on top of your selling game, no matter what kind of a product we’re talking about, forming the price should always be your top priority. However, since today’s market is pretty complex and oversaturated, there are a lot of things to which you have to pay very close attention if you don’t want to be overrun by your competition.
Let’s say that you’re selling anti-virus software. You might have the best product in the entire market, but other products with better prices will always manage to gain more attention. Pricing is a special field of its own, and in many successful companies and corporations, there are entire teams dedicated to forming prices of products. There is a lot more philosophy in it than you’ve thought.
Obviously, if you are a smaller company, or you’re running your own solo-business, you won’t have a special team that will constantly keep track of other prices on the market, therefore you won’t be able to make the required changes in time before the other competitors take you off the throne. A lot of people think that “just have the lowest price” is the best way of selling your product, but this is not entirely true. Although you might be able to sell more copies of whatever it is that you’re selling if you have the lowest price on the entire market, but this doesn’t mean that you’ve done a good job.
“Lowballing” can be a vicious circle in which companies will just keep trying to outpace the other competitor when it comes to lowering the price, even if it is below their standards. This is not a good way of handling things, and it has its own consequences that might affect you in the future.
This has been a “problem” for quite some time now, and it inspired many software engineers to develop software that will take care of all price-tracking and adjusting for you. Let’s say that you are selling your product on a market that is on the complete opposite side of our planet. The busiest and “peak” hours of that market might be just when you’re sleeping, meaning that you won’t be able to adjust anything, even though that’s when it is most important. Besides, these prices change more than two or three times per day, so it is pretty hard for a human being to keep constant track and update accordingly.
Luckily, we have computer algorithms that are able to help us with problems of this kind. One of those products is Smart Re-pricer from Intelligence Node. This product is considered to be superior due to the automatic learning method, powered by a sophisticated AI. If you are interested, feel free to check this.
The great thing about these computer programs is that they are able to constantly monitor the price of our product, as well as the price of the product of the competition that you’re currently dealing with. If you want, the price can also be automatically adjusted in order to be competitive, when the “opponent” companies do the same thing. If you ask me, this is one of the best ways to keep your “head in the game” at all times, even when you’re not able to pay close attention to the current market situation. If you’re serious about making good sales and boosting your revenue, this is an investment that has to be done.
Detailed charts and reports of what kind of a move the competition pulled off recently is a great way of gaining insight and being able to react before it is too late. The corporate world is way too cruel nowadays, so you have to use every little thing that you can to your advantage. What’s even harder to swallow is that your competition is already using these sophisticated computer algorithms to take advantage and sell more than you.
“Lowballing” is not a good option because eventually, you will end up selling your product for a price that is absolutely below what it is worth. This is why most powerful companies, such as Apple, are keeping their prices suitable for their standards, even though their competition is trying to “undercut” by more than fifty percent. However, even Apple is a company that had a few situations where the competition was pretty close to taking over, which is just one of the many examples of why you need to keep close track of every little detail. The point is to price your product for the realistic standards, but still, have a competitive price compared to the others on the market.
The main reason for using an automatic, AI-powered price re-pricer is because it is able to react a lot faster than you when it comes to changing prices. You can spend a lot of time to manually think of a good price and change it, but what you’ll see after just a few minutes is that the other “opponent” products have a changed price as well, possibly one that is lower than yours. You just can’t compete with a computer, unless you plan to spend the entire day on websites such as Amazon or eBay.
Imagine what happens if you are a company that has more than fifty products listed for sale at all times. You would have to do this for each product separately, and constantly update them more than two or three times per day. It is impossible to do this, as you’ve probably imagined, so an automatic re-pricer is always a good option in such scenarios.
Most re-pricers are going to offer you a free trial, which is a great option for someone that is pretty new in this and doesn’t really know how to operate one yet. If you are not sure that you’ll like the software, you can try it out before making the transaction. Most of them are pretty easy to use, and you’ll just need a few hours at most in order to fully understand how they function. Upon getting the hang of it, you’ll be able to sit back and relax while the software does its job.