Everything you need to know about Price Optimisation Softwares
by Jessica Miller on 3 Jan 2023 (4-minute read)
• 60% of consumers make purchase decisions solely based on the price of
• Price optimization software allows you to optimise the price of your
data and customer behaviour
• Optimising the prices of your products based on competitor and market
will help you
competitive without compromising on margins
• To identify the right Price Optimization Software you should know your
aspects of the competitor you want to track
According to a study by PwC for 60% of consumers, the price of a
primary factor that determines whether they choose to buy a product or not.
getting the price of your product or service right is crucial for its
the market and it is all the more so if you’re in the retail industry where
is aggressive and customers are super savvy! This is where Price
What is price optimisation software?
Price optimisation software helps you price your product based on market data and
customer behaviour so you are able to beat the competition without compromising
There are many benefits of adopting a competitive pricing
into your business.
The tool basically fetches you data on competing products, their prices,
etc. so you can make data-driven pricing decisions that help you stay profitable
Why should you use price optimisation software?
If you are in the retail business, then chances are your products are price
have high competition. Tracking all your competitors, their products, prices,
promotions, and customer experience can be extremely time-consuming and
Price optimization software has come quite far and leverages the power of the
and artificial intelligence to fetch data that is beyond just the current price
Modern AI-driven price optimization software like Pricechecker fetches competitor data including:
Product prices and price history
Current promotions including coupon codes and prices
Competitor product ratings and reviews
Product stock status including pre-orders
This information not only helps you optimise prices to ensure that the customers
you over your competitor but also,
Increases your customer acquisition by pricing
Allows you to forecast customer behaviour based on
Plan your promotions to match if not beat the
Plan your supply and inventory based on data-driven
Identify perceived benefits of a product and
React to market changes promptly and intelligently
Foresee market opportunities and threats
How to identify the right price optimisation software
There are quite a few price analytics, intelligence, and optimization tools out
little homework will help you identify the one that will work best for your
its current state but also accommodate your evolving needs as your business
Define the aspects of price optimization: Price
optimization is more than pricing higher
or lower than your competitors' current prices. In order to make truly
pricing decisions, you need to know which aspects of your competitors you want
analyse, and base your pricing decisions on. You will want to take inputs from
product, marketing, and sales team when deciding the aspects as the data will
make crucial decisions.
Make a list of the aspects of your competitors that affect the market for your
This could include the current price, promotions, stock status, price history, stock
Identify your competitors: Make a list of your
competitors and the products that you want
to track. Do you want to track all your competitors or only your direct
many products on your competitors’ catalogues compete directly with yours? Do
to track all of them all the time or would it be more effective to segment them?
Having a clear knowledge of your competition can help you identify the software
accommodate it, understand it, and fetch data that you can filter and analyse
your pricing strategy.
Know your budget and capability: one thing to watch
for when evaluating any software
is the hidden costs involved. This not only includes the recurring cost of the
but also the cost of time, effort, and manpower involved in setting up,
using the software.
For instance, if you choose to deploy Pricechecker
your business, you get a dedicated
POC and a team that will help you set up and maintain the software while all you
do is monitor and analyse the data to make business decisions. This means you do
need to have any tech knowledge or skills to deploy and use the software.
Most Price Monitoring Software will charge you based on the number of products,
might also be onboarding fees, remapping fees (in case your competitor updates a
launches a new product), etc. Based on these charges, you can arrive at the
you’ll need to budget for if you’re evaluating a price intelligence software for
Price optimisation software will help you
provide the best shopping experience for your
customers by allowing you to optimise the prices of your products based on
prices, promotions, seasons, demand, market trends, etc.
Pricechecker goes one step further to fetch you
competitor data like ratings and reviews
and stock status giving you an insight into customer perception and demand and
the competitor products giving you that extra edge when making pricing
Schedule a chat to find out more about Pricechecker.