Are you into retail? If you are, you are sure to have a clear idea about how difficult it is to stay on top of the pricing war. And to top it, customers visiting your brick and mortar store usually check out price comparisons online from their Smartphones before they decide to make a purchase. The condition sure seems bleak.
The good news is – you can dominate the retail pricing war. And this is possible when you make use of pricing technology. Once you start doing this, you get a better understanding of the way pricing works in a competitive market. This perception can assist you in boosting sales to your online and offline customers.
How do you combat show rooming? Well, this is the name given to the concept where shoppers check out the products from a brick and mortar store, but don’t make a purchase decision immediately. They rely on online resources to compare prices before they make a purchase decision to ensure that they get the best deal.
Let’s try to work out the solution of the issue every retailer is sure to face.
Step 1: Get into The Right Mindset
If you think it impossible that shoppers just come to your store to check out the products, you need to think again, because this is what happens most of the times. After they have checked the products, they fall back on their online resources to compare shop. Your first task is to understand consumer behavior.
Next, get a clear comparison of your product prices and that of your competitors. You need to come up with a pricing strategy that matches the market conditions. To do this, you need to match prices of your retail store with that of the online retailers. And this needs to be done on an annual basis to avail of its advantage.
Step 2: Equip yourself with the Right Technology
Now that you know that you need to get your hands on competitive pricing data, the question is – how do you do it? It’s possible to do it manually, but it will take considerable time and effort. And it won’t be easy to check retail prices of products in offline and online stores if you do it manually.
The best way to do it is to use automated price intelligence tools that offer accurate real-time results. Once you have the data, it can be of use in several ways. For example, you can use it for paid search engine optimization. You can also use it for increasing conversion rates by restricting the stock of overpriced products in your inventory.
Step 3: Give Customers the option to Compare Prices
It doesn’t seem right. Right? But it is best if you can play the retail game the consumers’ way. Gather inspiration from as successful a retailer as Sears Canada. Their web app is designed to offer consumers the option to compare prices without a hitch. With this kind of a solution, you can actually match the price of the competitor and close the deal.
Why does it work? It does for the simple reason that it plays up on the consumers’ psychology. The most important thing for the majority of consumers is to get the best deal. And when the retailer gives them the opportunity to check this, it boosts their confidence that it is truly the best deal. And that they are making the right decision.
Step 4: Make Sure your Prices aren’t too Low
While it’s essential that you price your products properly to make them appropriate for the market conditions, it’s also important that you don’t make them the cheapest ones available just to win over your competitors. Because if you do, you lose the confidence of the consumers concerned about the quality of their purchase. GasStorageDepot has followed the same rule. It did not overprice its product nor it had lowered the price of its products to compete with its competitors.
Even if your products aren’t the lowest priced, you can still seal a deal. Offer consumers sound advice and prompt assistance, make sure you excel at service and emphasize on buying from a reputed retailer. Consumers will still find your products a better option if you can convince them of your sincerity and credibility.
Stay within the price range that lets your business make a profit, or at least break even. Otherwise, you will soon start losing out to your competitors. Winning over the retail pricing war isn’t about putting the tags with the lowest prices on your products. It’s more about preparing the strategy that lets you sell at your price.
Most importantly, get help. You cannot stay at the top of the competition if you aren’t using your resources right. And it will only be possible if you get advice and assistance from the professionals specializing in working out pricing strategy, creating better visibility into pricing comparisons and making use of the data at hand.