How to Build Pricing Muscle in Retail
Organizations usually rely on historical data and transactions to determine their pricing strategy. However, this data is typically insufficient to arrive at a competitive price. Moreover, customers these days are well informed about the value of products they want to purchase. That's why organizations need to arrive at their pricing strategy only after taking into consideration external intelligence and competitive data. E-procurement systems and price comparison websites have put customers in the bargaining position with the availability of real-time information. This is the type and speed of data organizations need to obtain. Leveraging such information can help an organization counter the threats of new entrants, competitive rivalry, and substitutes with a strong pricing strategy.