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For any organization, the key to success and meeting revenue goals is to keep the sales team motivated. However, it is not the only contributing factor. Along with creating a pricing strategy it is also important to tie it to the appropriate product. It helps in carving a niche for oneself against other solution providers. Thus, the significance of having a comprehensive plan for generating the desired revenue can’t be undermined.
When it comes to creating a plan, the competitor pricing research plays a crucial role. It enables you to create your pricing strategy, based on the competitor’s prices, strategies, etc.
Here’s a look at some tips that will help in achieving the pricing goals in 2023:
Methods to Achieve the Pricing Goals in 2023
1. Motivate Sales Teams with Incentives
This is a universal truth which can’t be ignored. The sales team gets motivated when they get paid for their growing sales figures. Whether you are a small business or a start-up or an established business, the need for a competitive pricing plan can’t be ignored.
During the process of pricing a product/ service, most businesses focus on what they sell instead of focusing on the buyer. Companies need to realize that they need to evaluate and identify what drives the buying decision of the customer and how different customers need diverse methods to motivate them to buy.
It can lead to a missed opportunity for revenue growth. You might end up offering discounts which might not impact the customer’s decision-making. However, you can identify these patterns in a simple yet effective way and leverage them. It is a better approach to employ price points or discount ranges based on customer segmentation. It helps in achieving the revenue goals via improved pricing strategies instead of pricing the product/ service on project size.
2. Increasing Revenue and Profitability Motivates Leaders
There are a few things that every leader must practice. They must be accountable for their team’s performance, communicate the plan to them, and motivate their team.However, leaders can’t do it all alone and everyone should be on board with them and their plans. For this, the leaders require a meaningful vision and mission which reflects directly on what matters the most. They need to communicate whether they want sales or profit or both.
Their team expects the leader to protect them when required. This can include making tough decisions as well as giving the team some space for growth.
3. Make Strategic Plans
One of the best ways of ensuring that you reach your revenue goals is to have a pricing plan in place which can be done with the help of competitor pricing research. If you don’t have a plan in place, you will simply chase the short-term sales goals that won’t help in meeting the sales goals in the long run. If customers keep coming to you looking for discounts, you will end up chasing the buyers who are only looking for discounts and it would be tough to make profits or achieve the desired revenue.
Instead, think about how much money every prospective customer can bring to your business overtime. You need to calculate the average spend they make per month.
This doesn’t mean you should say no to sales and discounts as they are necessary too!However, make sure that every sale has some plan attached to it. This will enable your team members to know how much money they can make, how much they can get for the business, and the importance of these numbers for everyone involved.
4. Making Great Offers
Price points and deep discounting ranges which are easy to remember for the team will enable them to make offers well and sell more. The price points need to be in sync with there venue desired. When setting the price points, competitor pricing research can also help. The discounts that you offer should reflect in the proposal so they get communicated to the customers clearly.
The discount bands not only help in managing customer expectations but also help in assessing how much money is required to meet the goals. You can keep a track of how well the targets were achieved by comparing the money above what you budgeted against money below what you expected.
5. Benchmark Against Others
Measuring the data from competitor pricing research and comparing it with yours can help in getting an idea about your strengths and identifying areas that need improvement. Setting benchmarks enable your company to be at par with the success and growth of other companies in your niche. Analyzing what other businesses are doing successfully enables you to create a plan for boosting the performance along with capitalizing on the opportunities.
Take into consideration crucial business data obtained via competitor pricing research for optimizing an organization’s growth and improving profitability.
6. Keep Track of the Progress with Reporting
It has always been challenging to show your value to the clients. It is important to benchmark your company and know your position as compared to the competitors in the industry. You must make sure that your clients know it too. A tech solution with features such as client reporting can help in maintaining transparency with the clients and build a stronger relationship with the business partners.
7. Data Monitoring
Accurate data plays a crucial role in business growth but it can be challenging to track various types of data. It is best to invest in solutions which can integrate into your business tools along with data dashboards that consolidate important data. This will help in identifying the relevant patterns and trends in an accurate manner for making data-driven decisions.
Having a pricing strategy in place can make all the difference when it comes to achieving the sales target or missing them. With the help of effective price points, the sales team can make offers for achieving their goals without compromising on the buyer experience. You can win more deals and get close to your revenue goals with the help of a pricing strategy combined with attractive services.
For meeting your revenue goals in 2023 make competitor pricing research a part of your strategies.
Significance of Building a Competitive-Based Pricing Strategy
Now, that we have a better understanding of how pricing goals can be reached, let us get a brief look at the importance of competitive pricing analysis.
1. Identify the Competitors in the Market
Being in the eCommerce market means having cut-throat competition in almost every industry. Online retailers often face many challenges and competition is one of the biggest. It is fair to say that many companies went out of business due to the lack of competitor knowledge and they could not withstand the pricing waves eCommerce can throw at them. Now, here the smartest decision is to go for the best pricing intelligence platform like PriceIntelGuru. With such a step, you can withstand the competition by identifying the real change in the market.
For instance, if you are an online show brand and you feel the need to increase your prices,then you must have a thorough knowledge regarding your consumer preferences. Also, you must justify the price hike to not lose the customer loyalty. The trickiest part here is to differentiate your value deliverance from the customer’s value perception. With the help of a pricing intelligence tool, you might have a shot at filling the market gap between expectations and the product delivery. It makes sense, right?
2. Research the Competition prices and Strategies
Basing your price according to the competition involves in-depth research and analysis. You can’t jump into a price war without getting a proper understanding. Moreover, competitors might have a pricing strategy let’s say a dynamic one and you want to follow a flat rate. Now, if you go with dynamic pricing without knowing the effects it will have on your business, you are bound to fail. The core is that pricing should enable your company to achieve its bottom line and also make some good profits in the long run. So, the pricing intelligence tool will help you in conducting this research with scientific methods and help you reach a decision that will be beneficial for your business.
Furthermore, when you do the competitor research, it will include more than just the pricing. It will involve the minutest details like inventory management,packaging, product offerings, positioning strategies, presence and the like.
3. Average Out the Price of All Competitors
Competitors will be many but you must choose only a few. It is recommended to go for just 5-10 as it will help you build a stronger brand with a better base. Now, once you have identified the competition, you must know what everybody is offering. It is fruitful you have a pricing map of your competition and then you build a pricing strategy based on that. In this manner, you will be structuring out a pricing that will be good in the market and you have a better chance of being the market leader.
Additionally, averaging out the price of a range of competitors will help you create a benchmark for yourself and get a price that is a winner.
Create a Price Map with PriceIntelGuru
PriceIntelGuru’s pricing tool is built after years of research and a rich database. We offer the best in the industry for various businesses irrespective of their nature, size and location. Making a road map to success helps you analyze, scrutinize and introspect the operations of your business and your pricing plays a key role in delivering the same. So, waste no more time and get in touch with us to jump higher on the ladder.