Don't let bad data dictate your prices

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Today’s technology enables accurate centralized pricing management and rapid publication of price changes, but bad data will cripple even the best dynamic pricing strategy. For example, product cost, shipping costs, and customer service data are often amortized across multiple SKUs, but luxembourg telegram number database in reality they impact the economics of individual products differently. Underestimating shipping costs for large items or fast shipping creates an artificially attractive margin profile, and in such cases, algorithms may recommend price cuts for products, but these price cuts, if implemented, can result in large margin losses. Prioritizing cleaning of pricing inputs for high-value items, as well as greater granularity and precision in cost allocation, can greatly improve pricing recommendations.

As more people shop online, retailers would do well to get serious about building up their dynamic pricing capabilities. Otherwise, they may soon find themselves falling far behind their more forward-thinking competitors.

dynamic pricing casesAn effective pricing strategy is essential to help a business set a price that is in line with the competition, which will maximize revenue and ensure good profits.

A business can choose from a variety of pricing strategies based on a variety of different factors. A business can set a price to maximize profitability per unit sold or its overall market share. It can set a price to discourage competitors from entering the market, or to increase its market share, or simply to remain in the market.