The price of a product is determined by the interaction of supply and demand in a market. This is a clear advantage for those who sell unique products. In real life, though, and in virtually every industry, online businesses have to compete in a global marketplace, where there are more and more merchants every year selling exactly the same products. Competitive pressure is steadily increasing, especially in online trading. There are hardly any article or product groups that are not on offer by at least ten other online merchants.
In this interview, Dennis Pflie, pricing expert at parsionate, explains how retailers can assert themselves in increasingly intense competition.
Efficient, dynamic pricing models will play an increasingly important role in commerce. Digital transformation is changing the customers’ behaviour and buying habits. Consumers are constantly comparing product prices on different portals, e.g. price comparison websites or marketplaces, which increase transparency on the market. Not only individual companies, but the whole economy is subject to an increasing pricing pressure and price wars. Companies that focus on their pricing strategy will benefit from this situation.
Do you still remember? The ski holiday is due and you are totally up to buy a new pair of ski, to really enjoy the snow! You are visiting the sport equipment supplier of your confidence and having a look on the different models of ski. Slowly an insecurity develops within yourself: rather an all-mountain or a carver, freestyle or high-performance ski? But fortunately, a friendly salesman appears: “How can I help you?” A typical consultation follows: you are you skiing on prevalent pistes or also in deep snow? Do you make full use of the piste, with big bounds or would you like to ski a little faster down the mountain? The salesman recommends a model and explains the advantages. After a critical look on the price, he suggest one or two more inexpensive alternatives. You choose the attractive design and head off to the cash desk with anticipation.
Source: Showrooming and the rise of the mobile-assisted shopper, Matthew Quint, David Rogers, Center of Global Brand Leadership, Columbia Business School
Unfortunately this history more and more belongs to the category „one upon a time“ for many retailers. Normally the customers will not enter the sport shop clueless anymore, they first seek information about the desired products on the internet – If they still make it to the stationary shops at all and do not buy online. Latest after the consultation of the salesman, they start to compare prices of the desired models in the internet – and it will not be a happy end for the salesman if they find a cheaper selling price there.
RS Media Group consists of around 130 highly motivated PIM, e-commerce and print experts – one of Europe‘s leading omnichannel teams.
We have asked our employees to share their predictions for 2015. The result is the following collection of topics related to PIM, e-commerce and print. It was also a nice opportunity to get to know our colleagues a little better.
With this in mind: Enjoy our omnichannel trends for 2015 and see you next year!