Competitive Pricing: A Strategy to Maximize Business Profits and Achieve Growth
Is there a sudden drop in the sales of your products or services? Has the conversion rate dropped suddenly? One of the most likely reasons behind this is - pricing. It may happen that the demand for your product or service has dropped because your competitors have chopped the pricing for the same product or [...]
Is there a sudden drop in the sales of your products or services? Has the conversion rate dropped suddenly? One of the most likely reasons behind this is – pricing. It may happen that the demand for your product or service has dropped because your competitors have chopped the pricing for the same product or service. Although it is a good idea to keep own product’s price lower than the competitor’s, it is never a good idea to keep the difference huge. Competitive pricing analysis helps in such situations and can help respond effectively and efficiently to the competitors’ strategy. We at Infiniti, with the help of our industry analysts, have listed down several competitive pricing advantages that can pave the path for profit maximization and growth for your business.
Competitive Pricing Advantages
Better positioning of the business
Competitive pricing analysis allows the business to regulate the competition by preventing the loss of customers and market share to the competitors. This is one of the most significant competitive pricing advantages, which enables you to respond to every move of your competitors. This can further help in the better positioning of your business.
Stable customer base
For online shoppers, pricing is one of the most important factors behind their purchasing decisions. According to the pricing facts of e-commerce, online shoppers visit at least three websites before arriving at a final decision. This clearly shows that for online shoppers, pricing and price comparisons are very important factors. Therefore, competitive pricing analysis promises to help you keep your customer base stable and lets your business grow by regulating and benchmarking pricing.
Dynamic pricing is a sophisticated approach and stands at the top of the competitive pricing analysis methods. With the help of dynamic pricing, frequent information on competitors’ pricing strategy can be obtained. This further helps to compete better in the market and maximizes profit as well. This is one of the most useful competitive pricing advantages that can take business growth to the next level.
Improved price positioning
Competitive pricing analysis helps monitor the competition and makes changes to the prices accordingly. This analysis can be best done by automating the software since it provides an opportunity to increase the price of the product while monitoring the competitor’s strategy. This can help in improving profit margins. The price intelligence data gathered by such software helps in better price positioning and detection of price differences.