Inaugurating a new business is not easy. It requires a lot of assets, time, planning, and implementation of effective strategies to boost your business. With so much competition in the marketplace, deciding an effective price for your product is not easy. The most crucial factor considered by a customer while buying your product is price. Customers will wander from site to site for a price that suits best to them with no compromise on quality. Here the issue arises for vendors. Placing the price rate too high as compared to competitors may lead to low sales whereas placing it low could lead to negligible profits. Therefore, vendors should follow competitive pricing strategies in order to win the marketplace.
How to Win Market with Competitive Pricing?
Competitive pricing is a strategy used for pricing products that are similar to the competitors’. This strategy aims complete focus on competition-driven prices and not on costs of production. This requires complete market analysis in order to respond promptly to competition, set an ideal price for your product, and attain more sales. There could be three possible pricing strategies i.e. lower, higher, or same price from your competitors’ product price.
- Setting the price rate of your product above your competitors’ product price could only be justified if you bring improvements and introduce new features to your products. The features should be so attractive to the customers that they would instantly choose your product instead of a higher price.
- Setting the product price below your competitors’ price can only be beneficial if you can increase the volume of sales without affecting the product cost else it would lead to low-profit margin and even to bankruptcy.
- Setting the product price, the same as your competitors’ price may lead your customers’ focus completely on the product and its features. You might enhance your product features more and more in order to win the retail market and leave your competitors to fall behind.
MAP Monitoring Software
Competitive pricing requires a lot of price monitoring and tracking which could only be attained by automated processes or software. Here arises the concept of minimum advertised pricing often abbreviated as MAP. MAP is generally a form of policy created by the manufacturer of the product that advertises the lowest price of the product on sale. For this tracking, the best MAP monitoring software has been introduced.
Why MAP Monitoring Software is Effective
MAP monitoring software ensures 24/7 tracking of retailers across the e-commerce system that identifies the price violations and detects deceptive resellers. It keeps you updated through emails and notification alerts in any price compliance. While choosing the best MAP Monitoring Software for your business, you should look for the following features.
- Should boost overall margin, revenue, and your brand equity.
- Should reduce compliance cost (both operational and seller) by almost half
- Should assist in growing and controlling a strong sales network. This could be achieved when your MAP monitoring software converts unauthorized sellers into legalized sellers.
- Should prevent fraudulent products from decreasing your market share.
A wisely chosen MAP Monitoring Software could boost up to 15% of your brand growth in a quarter with 99% accuracy by working 24/7 across the globe.