Competera offers retailers a comprehensive pricing platform for all their pricing needs. Competera’s pricing platform provides high-quality competitive data, competitive intelligence, price monitoring, and price optimization that is highly customizable according to every individual company’s needs. Timely data delivery, 98% accurate competitive data, a strong SLA, and solid customer support services are highlighted as a few of the key features Competera presents to their clients.
Revionics is an American-based pricing software provider for retailers and specializes in AI-based pricing software. Revionics® Price Optimization utilizes AI, data, and business strategies to offer optimal prices for products. They offer clients the ability to customize of categories, channels and items according to their business needs. Revionics price optimization software provides insights such as…
Pros offers quick and precise price optimization software for retailers looking to utilize dynamic pricing. They have over 30 years of experience in developing algorithmic tools and software, making them one of the most seasoned price optimization software providers on the market. Their price optimization software promises to provide retailers with increased profit and sustainable…
Blue Yonder is an AI and ML-based price optimization software provider allowing retailers to increase their revenue through advanced pricing analytics.
Their price optimization software is fully automated and features demand forecasting and competitor product analysis reports, as well as profitability analysis.
Pricefx offers an ML-based price optimization framework to improve the product portfolio and pricing of businesses. They offer “segment-specific” optimized pricing and price recommendations which can be exported to and delivered in multiple formats including but not limited to ERP systems, CPQ, and price lists. With Pricefx price optimization software, businesses can obtain and model
Dataweave is an India-based company offering eCommerce retailers analytical tools via publicly sourced information scraped online. Founded in 2011, they offer a simpler, cheaper alternative to advanced pricing software which can be used to optimize a retailer’s pricing strategy and obtain key insights on competitors and market conditions.
Based in the UK, Pricefy seeks to provide retailers with the software they need to monitor their competitors and their market “on autopilot.” They were founded in 2017 and focus on eCommerce retail within the UK and European market. The company claims to be able to harness the power of big data to help eCommerce…
Omnia is a Netherlands-based company, improving retailers’ pricing processes since 2013. Their mission is to give retailers the tools they need to save time, money and headache so they can take control over their pricing and online marketing. Being based in the Netherlands, Omnia Retail focuses on the European retail market, but is continuously expanding as their customer base grows.
Founded in 2012, Intelligence Node is a consultancy dedicated to helping retailers perfect their pricing strategy. Using technological solutions, they seek to make pricing more comprehensive for e-tailers. Intelligence Node seeks to go beyond giving retailers automated solutions, but to also provide consulting in order to create an optimized pricing strategy. The company is based…
Wiser offers a multitude of solutions for mid-size and large omnichannel retailers. Founded in 2013, the U.S.-based company ensures that clients using their software will be given data quickly and with high accuracy. Their software collects and analyzes data online and in-store to help retailers perform a multitude of pricing-related tasks, such as tracking MAP,…
What is Pricing Software?
Pricing software is used by businesses to manage pricing in a coherent, automated, flexible, and effective way. Pricing software helps companies to keep prices optimal, grow key business metrics, minimize human involvement, and react to market changes proactively.
The history of pricing software traces back to the mid-1990s when the early prototypes of modern solutions were released. The first wave pricing software was capable of processing historical data but remained rough in procession and daily use. The second wave solutions appeared at the beginning of the 2000s. Airlines companies were the first to adopt pricing software capable of generating prices for flight tickets based on the mix of changing factors. But poor ROI and difficult integration prevented these prototypes from massive adoption. Eventually, the first third-wave solutions were released in the 2010s.
Today, there are plenty of solutions on the market offering a wide range of features and tools per various business needs. Being easy in integration and use, third-wave pricing software is more often preferred to other alternatives, e.g. in-house pricing systems. Pricing software is used across various businesses with the retail industry being a leader in implementing pricing solutions. The mass adoption of pricing software in retail can be explained by the fact that it helps to both gain financial growth and retain customers.Pricing software features may include:
- Automated rule-based pricing campaigns
- Performance analytics and goal tracking
- Assortment segmentation
- 'What-If' scenario simulation tool
- Event-driven repricing campaigns
- Price management on the store/channel/pricing zone level
- Demand-based pricing campaigns
- Workflow and process management
- Markdown and promo optimization
- Cross-product and cross-channel consistency
- Import/export support for other systems (e.g. ERPs, CRMs, etc)
What is Price Optimization Software?
Price optimization software helps businesses to find optimal price points by using advanced algorithms and best econometrics practices. Such algorithms (often powered by artificial intelligence and machine learning) can determine and predict dozens of pricing and non-pricing factors, like demand dynamics or cross-elasticities within the portfolio.
Even though the terms 'pricing software' and 'price optimization software' are often used interchangeably, the latter term has a more narrow meaning being applied to the most advanced examples of pricing solutions.
For example, in contrast to more simple pricing solutions, price optimization software enables the businesses to run demand-based pricing campaigns which can generate a revenue uplift by 15% and a profit margin increase by 5% in the long run.
Profit/Advantages of using Pricing SoftwarePricing software remains the best tool to increase key business metrics by means of pricing. The key advantages of using pricing software include:
- Transparency and value insights for management and operations
- Structured approach fostering pricing transformation
- Coherent and unified price management across all channels, price zones, or geographical regions
- Parametrized & calibratable pricing logic to leverage pricing power
- Multiple pricing logics allowing efficient time and effort allocation for pricing
- Pack size/caliber explosion logic for effective SKU price differentiation
- Logical and consistent approach supported by corporate-wide integrated maintenance
- Scalable and expandable price management system allowing integration with other systems (e.g. CRMs, ERPs, etc)
These are the general benefits of pricing software. Specific advantages might be different depending on a company's strategy and business goals. For example, retailers facing overstock typically use pricing software to run smart markdown campaigns to sell goods with the highest possible margin based on demand patterns and deadlines.
Price optimization software features comparison
|Pricing scenarios simulation (sandbox)|
|High prediction accuracy|
|Low consultancy for implementation|
|Quick integration (up to 8 weeks)|
|ROI-based pricing model|
Best pricing tool for Retail Industry
|4||Blue Yonder||View Profile|
|8||Omina Retail||View Profile|
|9||Intelligence Node||View Profile|
Price Optimization in Retail
- Pricing Optimization
- Competitive Intelligence
- Retail Management Systems
- Competitive Data Analysis
- Price Tracking
- Dynamic Pricing
- Price Intelligence
Price optimization seeks to predict how customers will react to different prices set for a product using mathematical analysis. Determining this helps retailers understand what prices would be optimal for their products according to their business goals, whether that be to increase sales, increase profit margins, etc. Traditionally speaking, price optimization was done manually, collecting data and making calculations for products using excel sheets and sometimes with the assistance of simple software.
However, conducting price optimization has become more complicated within the past few decades, and as a result, the software used to make these calculations has become more advanced as well. The first companies to utilize price optimization software typically had diverse product lines as well as broad target markets. Advanced software for price optimization is not exclusive to retail giants anymore, however – analysis shows that even prior to the 2008 recession, the global market experienced a rise in competition, which pushed companies to search for new business approaches.
This increased complexity and volatility in retail resulted in a gross drop in profits for manufacturers and distributors alike. As a result, more and more retailers of all sizes worldwide are beginning to integrate price optimization software into their pricing strategy to remain competitive in tough markets with unforgiving profit margins. Price optimization algorithms can be considered as one of the most crucial areas to invest in for companies that are still relying on ad hoc analysis and spreadsheets for their pricing needs.
The price optimization software is a system aimed at increasing business profits by analyzing the market condition of prices and formulating an effective pricing strategy on this basis. This is a great alternative to traditional methods of price optimization, which consist of manual settlements.
The pricing optimization software is suitable for businesses of all sizes, from an online clothing store to a supermarket chain. For this, a whole complex of data is used, obtained as a result of monitoring the price range in the market, the range of products and pricing conducted by competitors. Also taken into account are factors such as the behavioral mood of potential consumers, analysis of sales indicators during the campaign, changes in market conditions, and the economic situation in the country.
Thus, based on the data obtained, retailers can set the optimal price for their product, the most favorable and attractive for consumers. The introduction of pricing tool software allows you to develop an effective pricing strategy for promoting a product or service on the market and, as a result, helps to increase the company's profits.
Price Optimization Process
The process of price optimization starts with price monitoring. To be able to make an informed pricing decision, you need to track competitors’ data – prices, discounts, promotions, etc. Consolidation of such a massive amount of data used to be a complex but achievable task. With markets witnessing an exponential increase in the amounts of information, however, manual price monitoring is increasingly difficult and ineffective. AI-powered solutions alleviate the burden of big data, providing retailers with large amounts of high-quality data delivered in a timely manner, saving time and money in the process.
Some external price tracking providers are taking their software a step further, and offer price recommendations directly from the external pricing tool itself, centralizing the price optimization process into an all-in-one solution. Despite how simple it may sound, these advanced price optimization solutions are still highly customizable and suitable for businesses of all sizes. In other words, they may be an all-in-one solution, but they are far from a “one size fits all” solution.
Pricing Software It Is About the User
When one thinks of software, the first thing that comes to mind is the word, "priced." Pricing software is important in today's world. The fact is that the software you purchase has value as well as a price tag. If you are not careful, you can find yourself in a situation where the software you purchase has become outdated and not useful for your business.
You need to think about a couple of things when it comes to software pricing. You need to think about how much you will use. How much will it cost to pay for this software each month? Will you be keeping some or all of this software? What is the projected use of this software? When you consider these things, you can come up with a fair amount of money to spend on this software. Keep in mind that the longer you have the software, the more you will be paying for it.
When you have a lot of stored information, this can cost you a lot of hard drive space. This is especially true if you store all of your e-mail messages on your computer. If you have this many documents on your computer, you are paying for storage that you could just as easily have saved on a CD. If you are storing all of your information on your computer, you should think about backing up all of your information. You do not want to lose any of your data. The last thing you want is to be in a situation where you need to go out and purchase software that will get you in trouble because you can no longer find it
Choosing the Right Price Optimization Software
The amount of price optimization tools on the market is increasing, and it’s both good and bad news. The competition encourages innovation but also makes choosing the right price optimization software for your company’s needs more complicated. That being said, there are a few key things to look out for when searching for the right price optimization software.
First of all, it’s necessary to make sure that information collected by the price monitoring software is of the best quality. When looking at the data collected by the software in question, pay special attention to the following factors:
- accuracy rate
- depth of comparisons
- number of product page scans
- depth of matches
Another issue worth considering is that some providers deliver pricing data at specific times of the day, which may be inconvenient when setting up your own scanning schedule. Additionally, this could mean that you receive data at the same time as your competitors, which may take away the competitive edge that this data could potentially give you. It is better to choose a software that enables you to set up your own scanning schedule, so you can have data delivered to you when your business needs it most.
To ensure efficient utilization of the software, it is a good idea to take a look at the interface which should be user-unfriendly and practical for data processing. The software should be easy to use and transparent, providing deviation alerts so you can respond to market volatility as quickly as possible.
The provider must be capable to ensure competitive and matching data of a certain quality, stated in a Service Level Agreement. Furthermore, the price optimization software should provide you with MAP violation alerts so you can protect your brand image efficiently.
Lastly, you should consider what exactly the software is monitoring. There are a few basic things that a good price optimization software should monitor:
- Company positioning on the market. Are you within the market pricing range? Which competitors are affecting your sales?
- Your competitors’ promotion activities. Does the software track promotions, allowing you to optimize your own?
- Product availability. Are you alerted when rival companies are out of stock of a certain product?
With this ground covered, pricing optimization becomes clear-cut, fast, efficient, and easy to understand.Now on the market, there are many programs for optimizing pricing in the field of retail. Developers are constantly improving the platform, complementing them with new features and capabilities. To choose the best solution for your company, We recommend that you consider the following criteria:
- Compliance with business goals: choose price optimization software with functionality that easily adapts to the specifics of your business segment. Also, pay attention to the settings. The ability to independently regulate the data processing process will allow you to receive information earlier than competitors.
- The ability to integrate with other software: if you are already using programs for business automation, for example, CRM, choose a platform with the ability to connect to it. Thus, you can improve the processing of
- The customer base, predict the demand for a certain range of products. functionality: choose a program that provides offline access from other devices. For example, there is a pricing tool software with developed mobile applications. This is very convenient because it allows you to offer customers products at current competitive prices at any given time.
- Usability level: choose a program with an understandable interface so that company employees can take full advantage of the system’s functionality.
The Profit Potential in Price Optimization
Retailers are finally starting to recognize price optimization for its profit potential. It allows them to set the right prices based on solid data, increasing revenue as a result. Recent reports show that many major retailers were able to increase their profits by the merit of improved inventory management without major markdowns.
Price optimization helps to improve inventory management, reduce markdowns and gain higher gross margins. Having the right software supporting your price optimization process is the secret to selling products at optimal sales levels and maximizing profit. Regardless of the price optimization model your company uses to determine prices, AI-powered pricing tools can provide your company with improved results.
Price optimization software: what are the best products?
First of all, programs differ in functionality that directly affects the cost of this system. Also, pricing tool software is distinguished by its intended purpose, for example, some platforms are focused only on small, medium-sized businesses, or large enterprises.
The integration method, the availability of a mobile version, the action of online support are the key parameters that affect the functionality of a pricing tool software. Some companies offer customers a free trial version of the program for a certain period.