In 2020 with the recent situations with COVID-19, many new comer brands entered to eMarket. The competition of online retailers is bigger than before. Many different brands, manufacturers or retailers are seeking a strong base for eCommerce success for themselves. To enter the market space, especially within the strong competition-hold eMarket, businesses should be careful with pricing strategies. To keep a better pricing strategy comes with experience and knowledge about the market you enter. This is why having a better hold on the eMarket is possible with a good pricing strategy.
Many different retailers, brands and business owners are choosing different aspects when it comes to selection of pricing strategy. Many new comers are seeking for brand recognition and increasing numbers for brand loyalty; and that is why they choose low price strategies. However, there is a certain point for each brand, manufacturer or retailer in the market to recognize the importance of market-based prices. Along with the importance of MAP, retailers seek the similar prices to keep up with the competition in the long run.
Market-based prices are not only good for long run, but it is also good for new comers as well. If the market these new comers wish to enter is a saturated market, they should seek market-based prices more often to keep up a good hold.
What is a market-based price?
Market base prices are about setting your prices according to the similar or same products that you wish to sell. It allows businesses to compete with long term online businesses who already established themselves in the eCommerce.
Recognition of current market prices for similar products is the key aspect for market base prices. If you wish to create a market-base price strategy, you should be able to collect data related to your competitors’ in the same market.
Market base prices or market-oriented pricing policy is about a comparison and collecting a data for similar or same products. To have such data in the system for better sales strategies, brands often seek for advanced technologies of Competitor Monitoring Software like PriceRest.
Building up a strong and reliable analysis by utilizing market average is the key for market-based pricing strategies. Learning about your competitors, their e-catalogue, what they are selling for which price and gathering updated information related to them with an automated system can be extremely helpful for brand owners.
Market base prices are also known as the “low risk” strategy when it comes to pricing strategies. Keeping the prices at the average with others, your business will not develop a risk for failure. With this approach, it actually shows similarities with competition-based pricing strategies as well.
Disadvantage of market-based pricing strategy
On the other hand, there is a slight disadvantage of market-based pricing strategy. The disadvantage of this strategy lies upon seeking the other brands or retailers’ data. When you are creating an average and build your prices upon this new data, you can dismiss the different aspects of online shopping experiences. First of all, different brands and retailers that you look for average can seek different pricing strategies for their gain and repeating what they are doing could be harmful if it is not looked in details. This situation could also lead market-based pricing strategy user to making same mistakes without taking shopping trends of customers or potential consumers. In short, this information can cause trouble if they are not analyzed properly. To stay away from this disadvantage of market-based pricing strategy, a price monitoring software which can analyze and report the differences in the market, shopping trends and different details is a must.
With the changes in the world economy and online shopping experiences occurred in 2020, you can start your new business year by utilizing such strategy with the help of price intelligence tools like PriceRest. PriceRest provides data related to the prices in the market for the same or similar products that you wish to sell. With the help of Competitor Monitoring Software like PriceRest, you can seek for the details of sales of others and build up your own sales strategies.
For better understanding on pricing strategies join PriceRest today!