Sniffie

App Update: Discount selection for Omnibus Pricing App

Elina Kotamäki — Thu, 28 Mar 2024 12:27:48 +0000

After closely listening to your valuable feedback, we’re introducing an eagerly awaited update to the Omnibus Pricing App: the bespoke discount selection feature. This enhancement is not just an addition; it’s a game-changer in how you determine your products’ lowest prior price.

Why do you need discount selection?

Traditionally, our app has diligently included all Shopify discounts in the calculation of your product’s lowest 30-day prior price. This encompasses both discount codes and automatic discounts that are available to every customer within a specific timeframe. However, aligning with the EU directive that only advertised and universally accessible discounts should factor into such calculations, we spotted a nuanced challenge. Essentially, a discount could technically be available to all but if it wasn’t actively marketed to everyone, should it influence your pricing strategy?

When to use it and how?

This is where our latest feature steps in. Now, within the Omnibus Pricing App settings, you’ll find a new section dedicated to customizing which discounts should be considered in your calculations.
Imagine you’re using a loyalty app that churns out numerous discount codes, yet only a select few are promoted to all customers. With the new “Include selected discounts” option, you can now cherry-pick the discounts that truly matter. The result? Only your selected discounts will impact the calculations, ensuring both precision and adherence to regulatory guidelines.

Important Considerations

The first consideration is naturally most critical. If you “clean” your pricing history by excluding real discounts, you might be violating the EU directive.
The second aspect is less critical but important to remember. Newly introduced discounts will not automatically find their way into your settings. Should you opt to include or exclude certain discounts from the calculation process, it’s essential to manually update your settings within the Omnibus Pricing App each time you introduce new discounts.

We're Here to Listen

Your insights and feedback are the backbone of our continuous improvement. Have questions about the new feature or thoughts on how we can further enhance your experience? Don’t hesitate to reach out in the customer chat. We’re all ears and here to support you every step of the way.

What is the Omnibus Pricing app?

We keep an eye on the lowest prices for 30 days and dynamically show them on your website. Show off your discounted pricing with confidence!

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Ruohonjuuri embraces Sniffie for pricing excellence in sustainable retail

Tomi Grönfors — Wed, 27 Mar 2024 14:17:07 +0000

Ruohonjuuri, the pioneering provider of sustainable products designed to enrich lives with joy and vitality, announces a strategic partnership with Sniffie, a frontrunner in demand-driven pricing optimisation technology. This collaboration underscores Ruohonjuuri’s commitment to its core values of ecological responsibility, social ethics, and the delivery of high-quality organic foods, supplements, and natural cosmetics through an effective, responsible and automated pricing strategy.  

Omnichannel and international

As a company founded on the principles of sustainability and positive impact, Ruohonjuuri has chosen Sniffie to streamline pricing operations across its 17 physical outlets and three geographical e-commerce platforms (Europe, Finland, Sweden. The operation include the whole product lifecycle, including clearances to minimise waste in their stores. This decision is geared towards achieving a more efficient pricing process, enhancing automation, and accelerating the path to profitability all while maintaining the integrity of its eco-friendly mission.  

Sustainable, ethical, competitive and profitable

The integration with Sniffie ecosystem will allow Ruohonjuuri to refine its pricing strategy, ensuring that it remains competitive yet true to its values of sustainability and quality. By leveraging Sniffie’s sophisticated AI technology, Ruohonjuuri aims to automate and optimise pricing decisions, facilitating swift adjustments in response to market demands and trends.

“Our collaboration with Sniffie is a testament to our dedication to innovation, cost effectiveness and sustainable and service oriented business model”, says a Topias Nieminen, Executive Vice President for Ruohonjuuri. “Through this partnership, we anticipate not only improving our operational efficiency but also reinforcing our commitment to providing products that inspire joy and vitality, without compromising our ecological and social ethos.”  

This enhancement of Ruohonjuuri’s pricing operations through Sniffie’s technology represents a significant leap forward in combining economic success with environmental stewardship and social responsibility.  

About Ruohonjuuri:  

Ruohonjuuri is at the forefront of offering sustainable products that bring joy and vitality to everyday life. With a strong foundation in ecological principles and social responsibility, Ruohonjuuri serves consumers through its extensive range of organic food, supplements, and natural cosmetics. Operating across 17 locations and 3 e-commerce stores, Ruohonjuuri is dedicated to making a positive impact on the planet and its people.

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Shoptalk 2024: Key Takeaways from the Las Vegas Event

Tomi Grönfors — Tue, 26 Mar 2024 14:55:45 +0000

Shoptalk 2024, held in the vibrant city of Las Vegas, has once again set the stage for the future of retail and eCommerce, shedding light on innovative trends and offering valuable insights for businesses looking to stay ahead.

Here’s what emerged as this year’s key takeaways:

1. Operationalize your AI efforts

The discussions made it clear that the essence of AI in retail and eCommerce lies not merely in its existence but in its strategic operationalization. Integrating AI into daily operations transforms potential into performance. Businesses are encouraged to identify practical AI use cases that can streamline operations, enhance customer experience, and drive efficiency.

2. Utilize AI in personalization from start to finish

AI’s role extends beyond backend operations, playing a pivotal part in customizing the customer journey from production to delivery. Tailoring experiences for each customer at every interaction point ensures a personalized journey, reflecting the shift towards a customer-centric approach in retail.

3. Department store evolution

Gone are the days of traditional department stores. The modern marketplace is an immersive and engaging space for discovery and interaction. This evolution signifies a shift towards creating experiences rather than merely selling products, offering customers a unique and interactive shopping environment.

4. Customer-driven commerce is here

The ethos of customer-centric commerce is serving customers where they want, not just where it’s possible for the business. This approach requires flexibility and a deep understanding of customer preferences and behaviors, ensuring that businesses meet customers on their terms.

5. The price dilemma

In the face of economic downturns, the contrast between ‘need to buy’ and ‘want to buy’ products becomes stark. Navigating this pricing power difference is crucial, as it poses a significant challenge, and a potential, for retailers. Addressing this dilemma requires innovative strategies to balance customer needs, category management and overall business strategy.

6. Edutainment in Selling

Merging education with entertainment is no longer optional; it’s essential. Engaging customers in a way that is both informative and enjoyable enhances the shopping experience, making it memorable and encouraging repeat business.

7. Challenges with a Non-linear Customer Journey

The customer’s path to purchase is increasingly complex, diverging from the traditional linear journey. Understanding and optimizing for a non-linear journey, while being mindful of channel cannibalization and cross-elasticity, is crucial for capturing attention and driving conversions. Businesses must navigate these complexities to succeed in today’s dynamic retail environment.

Shoptalk 2024 has illuminated the path forward for retailers and eCommerce businesses, emphasizing the importance of innovation, customer-centric strategies, and the thoughtful integration of technology. As the landscape continues to evolve, these insights provide a foundation for navigating the challenges and opportunities that lie ahead.

Want to know more?

Happy to connect with you over a call and share the latest trends in pricing and marketing within the retail and ecommerce space.

-Tomi

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Motonet strengthens strategic pricing operations across the Nordics with Sniffie

Tomi Grönfors — Wed, 20 Mar 2024 14:26:44 +0000

In a strategic move to strengthen its pricing operations across the Nordic region, Motonet, the service-oriented retailer catering to the motoring enthusiast, has broadened its partnership with Sniffie, a forerunner in pricing optimisation technology. This collaboration marks a significant step in Motonet’s commitment to delivering unparalleled service quality alongside competitively priced, profitable offerings through both its retail and omnichannel platforms in all three countries it operates (Finland, Sweden and Estonia).

After a meticulous evaluation process, Motonet has placed its confidence in Sniffie to overhaul its pricing operations. Leveraging Sniffie’s advanced automation and AI technology, Motonet will now be equipped to automatically determine, strategise, and forecast pricing strategies—from base pricing to promotional activities and clearance sales. This adoption across its Nordic operations ensures a harmonised pricing approach, facilitating knowledge exchange and uniformity in automated processes across teams.

Timo Hansio, Buying Director Broman Group of Broman Group comments, “We highly value the blend of cutting-edge technology and unmatched service excellence that Sniffie brings to the table.”

This enhancement enables Motonet to implement swift, seamless, and automated pricing adjustments underpinned by demand-driven forecasting, thereby elevating pricing precision, agility, and consistency. “In the contemporary retail landscape, pricing is a pivotal marketing lever. Effective and profitable pricing strategies are as crucial for success as top notch service attitude,” asserts Suvi Leinonen, COO of Sniffie.

About Motonet:

Originating from Finland, Motonet is a distinguished retail and omnichannel chain specialising in automotive parts and accessories for car enthusiasts. Renowned for its extensive product range and premium service quality, Motonet operates across three countries (Finland, Sweden and Estonia) in the Northern Europe region, reaching a turnover of €430 million.

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Future-proofing Your Business: Why Investing in Online Store Pricing Software is Essential

Elina Kotamäki — Tue, 19 Mar 2024 14:20:38 +0000

In the ever-evolving world of eCommerce, where growth is unstoppable, online retailers are on the hunt for game-changing strategies. Enter online store pricing software, the indispensable tool rewriting the rules of success.

Online store pricing software revolutionizes the way businesses manage their pricing strategies, offering many benefits that can significantly impact their bottom line. From optimizing prices to enhancing competitiveness, here’s why investing in this technology is essential for future-proofing your business.

Dynamic Pricing Precision

Dynamic pricing precision is paramount for businesses to maintain competitiveness and profitability. Online store pricing software enables businesses to analyze real-time market data and purchasing patterns, allowing for the implementation of dynamic pricing strategies. By adjusting prices dynamically, stores can maximize revenue and adapt to market fluctuations with agility and accuracy.

Dynamic pricing involves setting prices based on various factors such as demand, competition, and seasonality. With online store pricing software, this process can be automated, ensuring that prices are continuously optimized to reflect changes in market conditions. This proactive approach not only helps businesses stay ahead of the competition but also maximizes profitability by capturing opportunities for increased sales and revenue.

Competitive Edge

Pricing software can provide businesses with valuable insights into competitors’ pricing strategies, product availabilities and overall market trends. Armed with this information, businesses can position their products effectively, ensuring competitiveness and maintaining healthy profit margins. By strategically adjusting prices, businesses can differentiate themselves and capture market share in their niche.

Competitive pricing is essential for attracting customers and driving sales. With pricing software, businesses can monitor competitor prices in real-time and adjust their own prices accordingly. This ensures that businesses remain competitive while maximizing profitability.

Get our Master Data Mapping Tool

Data-Driven Decision Making

Pricing software empowers businesses with robust data analytics capabilities, allowing them to make data-driven pricing decisions. By analyzing historical sales data, seasonal and market trends, and product availability, businesses can identify pricing patterns and opportunities for optimization. This data-driven approach not only enhances pricing accuracy but also ensures alignment with broader business objectives. Especially together with AI, online stores can for instance find out in just a few clicks which products are not selling well and would need an immediate price decrease or increase.

Online store pricing software aggregates and analyzes vast amounts of data to provide actionable insights that drive pricing decisions.

Efficiency and Scalability

Managing pricing across multiple products and channels can be a complex and time-consuming task, especially as businesses scale. Online store pricing software streamlines this process by automating pricing updates and adjustments based on predefined rules and algorithms, and updates those across all sales channels. This not only saves time and resources but also ensures consistency and accuracy across all those sales channels. Whether managing a handful of products or an extensive product catalog, online store pricing software provides the scalability needed to support business growth effectively.

Conclusion

In conclusion, investing in online store pricing software is not just a strategic choice; it’s an essential step towards future-proofing your business in the dynamic world of eCommerce. From dynamic pricing precision to data-driven decision-making capabilities, this innovative technology offers many benefits that can drive growth, enhance competitiveness, and ensure long-term success. By harnessing the power of online store pricing software, businesses can navigate the complexities of the digital marketplace with confidence and resilience.

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Navigering av Omnibus-direktivet: Vårt tillvägagångssätt för efterlevnad

Elina Kotamäki — Tue, 09 Jan 2024 13:38:47 +0000

Du kan även läsa den här artikeln på engelska, franska eller tyska.

Direktivet (EU) 2019/2161, även känt som Prismärkningsdirektivet eller Omnibusdirektivet, inför en ny artikel i direktiv 98/6/EG angående information till konsumenter om prissänkning. Information om att priset på en produkt har sänkts ska även innehålla uppgift om det tidigare pris som gällde före sänkningen.

Med tidigare pris avses det lägsta pris som har gällt för produkten under de senaste 30 dagarna före prissänkningen. Om prissänkningen under denna tid har skett gradvis, avses i stället det pris som gällde före den första prissänkningen. Första stycket gäller inte för varor som snabbt kan försämras eller bli för gamla.

Huvudsyftet med Omnibus-direktivet är att förbättra konsumenternas skyddsrättigheter i hela Europeiska unionen, och det gäller alla e-handelsbutiker.

I denna artikel granskar vi de viktigaste punkterna i Omnibusdirektivet och utforskar vårt tillvägagångssätt för att förenkla e-handelns efterlevnad av denna lag.

Viktiga punkter i Omnibusdirektivet

Varje prisreduktion måste visas på e-handelns webbplats genom att visa både det tidigare priset och det nuvarande priset efter rabatten.
Det lägsta priset som registrerats under de 30 dagarna före kampanjen måste användas som referens för att tillämpa rabatten.
Vid successiva prissänkningar under en specifik period avser det tidigare priset det som gällde före den första sänkningen.
Anpassade/personliga priser, baserade på konsumentens köpbeteende, bör visas transparent.
Säljarinformation bör vara omfattande; kunder måste veta vem de faktiskt köper från.
Falska kundrecensioner eller rekommendationer är förbjudna; alla kundrecensioner måste vara autentiska.

Hur prissänkningar tillämpas

Innan du planerar en kampanj eller en prissänkning måste du se till att alla historiska priser är tillgängliga minst 30 dagar före kampanjdagen. Du bör kunna bevisa och visa dina tidigare priser från den senaste månaden om det begärs av dina lokala myndigheter.

Kom ihåg att om du för närvarande använder personlig prissättning måste du lämna information om dina tillgängliga listor till dina kunder. Konsumenter måste tydligt och direkt se om det visade priset endast gäller dem.

Gör din Shopify-butik överensstämmande med Omnibusdirektivet med några klick

Om du är en Shopify eller BigCommerce-säljare behöver du inte leta längre efter en snabb och effektiv lösning för dina kampanjer!

Omnibus Price-applikationen är fullt automatisk och visar det lägsta priset under 30 dagar när produkterna är nedsatta. Det lägsta priset under 30 dagar inkluderar Shopify-rabattkoder. Tidsramen för det lägsta priset och kampanjens varaktighet kan förlängas och justeras i enlighet med lagarna i din lokala lag.

Säkerställ Överensstämmelse med Prisvisning

Se till att följa Omnibusdirektivet när du sänker priset på dina produkter.

Med Omnibus Pricing:

Få en direkt översikt
- Med vår dynamiska översikt kan du snabbt se den juridiska statusen för alla dina produkter.

Förbli alltid i överensstämmelse
- Genom integrationen kan du vara säker på att dina data alltid uppdateras.
Handla snabbt
- Korrigera snabbt eventuella icke-överensstämmande priser på några sekunder.
Spara tid
- Lägg automatiskt till dina Shopify-rabattkoder i det lägsta priset under de senaste 30 dagarna.

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The Evolution of Pricing Software: From Manual Calculations to AI-Driven Insights

Elina Kotamäki — Mon, 01 Jan 2024 18:32:04 +0000

Embarking on the journey of pricing software evolution feels like tracing the footprints of commerce itself — a path that mirrors the relentless pursuit of precision, efficiency, and innovation. Picture the early days when businesses relied on nothing more than manual calculations and basic spreadsheets to navigate the world of pricing strategies.

This journey from modest beginnings paves the way for a revolutionary story in which pricing tactics are propelled by technology into the domain of AI-driven insights, reshaping the landscape of modern commerce. Let’s go through the story in this blog post!

The Early Days: Manual Calculations and Spreadsheet Solutions

In the early days, without advanced pricing software, businesses navigated pricing strategies using more hands-on methods.

For instance, a retailer aiming to price a new product might begin by analyzing the cost of production and associated overheads. They’d then determine a markup percentage based on industry standards or desired profit margins. Next, they might compare their pricing to similar products in the market, adjusting slightly higher or lower based on perceived value or brand positioning. Occasionally, they would also run limited-time promotions or discounts based on intuition or past sales data.

While these methods provided a foundational approach to pricing, they lacked the precision and adaptability that modern software solutions offer. They were time-consuming, lacked in-depth analysis, and struggled to adapt to changing market dynamics. As companies grew, the need for more scalable and data-driven pricing solutions became evident.

Reach out for a demo

The Rise of Pricing Software: Automation and Analytical Capabilities

The emergence of dedicated pricing software marked a significant leap forward in the evolution of pricing strategies. These early solutions introduced automation and analytical capabilities, enabling businesses to analyze data more effectively, simulate various pricing scenarios, and optimize pricing strategies based on predefined rules and parameters.

Pricing software began to integrate advanced algorithms and mathematical models, allowing businesses to:

Conduct competitive analysis and benchmarking
Evaluate price elasticity and demand sensitivity
Implement dynamic pricing strategies based on real-time market data
Monitor and adjust prices in response to changing market conditions

The Advent of AI: Transforming Pricing Strategies with Intelligent Insights

As technology continued to advance, the integration of artificial intelligence (AI) marked a paradigm shift in the capabilities and potential of pricing software. AI-driven pricing solutions leverage sophisticated machine learning algorithms and predictive analytics to:

Analyze vast and complex datasets with unprecedented accuracy and speed
Identify hidden patterns, trends, and insights that traditional methods may overlook
Generate real-time pricing recommendations tailored to individual customer behaviors, preferences, and purchasing histories
Continuously learn and adapt to evolving market dynamics, optimizing pricing strategies to maximize profitability and competitiveness

AI-driven pricing software empowers businesses to make data-driven decisions with confidence, enabling them to:

Anticipate market trends and consumer behavior more accurately
Customize pricing strategies to align with business objectives and market conditions
Enhance customer engagement and loyalty through personalized pricing experiences
Drive sustainable growth and profitability by optimizing pricing strategies across various channels and market segments

Our AI pricing solutions

Explore further about our AI-powered repricing solution.

Looking Ahead: The Future of AI in Pricing Software

As AI technology continues to evolve and mature, the future of pricing software holds immense promise for businesses seeking to unlock new levels of efficiency, innovation, and competitiveness. From advanced predictive analytics and automated decision-making to enhanced personalization and customer-centric strategies, AI-driven pricing solutions are poised to redefine the future of commerce in the digital age.

In conclusion, the evolution of pricing software from manual calculations to AI-driven insights underscores the transformative power of technology in reshaping business practices and strategies. By embracing innovation and leveraging the capabilities of AI-driven pricing solutions, businesses can navigate the complexities of the modern marketplace with agility, foresight, and confidence, driving sustainable growth and success in an increasingly competitive landscape.

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6 Ecommerce and Retail Pricing Trends for 2024

Tomi Grönfors — Wed, 27 Dec 2023 08:47:08 +0000

As we enter 2024, e-commerce and retail businesses are at the crossroads of rapid technological advancements and evolving market dynamics. The economic landscape is still demanding, and the political scene is reasonably unprecedented. We gathered our notes and wrote with a simple approach the few main ecommerce pricing trends that will change e-commerce and retail companies in 2024.

AI will increase its usage in pricing

Artificial intelligence (AI) will be the hottest talk in pricing and how it can reshape your pricing strategies. That is an easy one. Yet, it is good to understand that AI’s increasing integration into pricing mechanisms is not just a trend; it’s becoming an indispensable tool for forecasting, markdown pricing, clearance sales, and price optimization.

Companies will be adopting different focused AI models to their pricing based on their real burning problems. For some, this will mean profit optimization; for others, calculating the most profitable launch price. There will be a significant shift to AI in e-commerce and retail. To start with the journey, here is a good book on AI in pricing.

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Take a spin with our free trial to give you a thorough outlook on how we could support you.

Navigating the balance between different sales channels

Many e-commerce companies will discover that their primary sales channel – their branded store – might be a different channel than their top-selling one. There is an ever-increasing expansion of companies selling on Amazon, Shopify marketplace, Instagram, and other sales channels.

Expansion into other sales channels will be a neat opportunity for companies willing to adopt that. For them, optimizing the pricing between channels will also be a constant battle so they will not cannibalize each other and that the channels sell well. One trend we predict is shifting focus back to managing your pricing landscape more thoroughly.

Integrating marketing and pricing

The digital marketing landscape, a critical driver of sales and brand visibility, has significantly increased costs. This shift necessitates a more focused and efficient approach to product marketing, especially in e-commerce. Companies will be creating a seamless connection between marketing efforts and pricing. Any friction in this pipeline will significantly impact your ROAS due to dropping conversions. In this dynamic environment, AI emerges as a key player in harmonizing marketing and pricing, ensuring that every ad dollar spent translates effectively into sales.

Seasonal awareness is increasing

Post-COVID-19, businesses are acutely aware of the importance of inventory management. Having too high stocks that are seasonal will need to be reduced. Therefore, there’s a growing need for seasonal awareness, particularly during the getting-out-of-a-season -phase. Timely clearance sales, guided by AI’s predictive analytics and pricing, will be a norm in e-commerce and retail. This strategic approach to seasonal stock management is not just about clearing inventory; it’s about maximizing profitability at every opportunity and utilizing resources well. And for the responsibility side, also avoid waste.

Pricing planning becomes a norm

In the European Union, the pricing landscape has been reshaped by the Omnibus Directive. This regulation, which mandates that merchants display the lowest price of a product over the previous 30 days during discount periods, has transformed the discounting game—no more Black Fridays where you used unreal reference prices.

The industry was forced to move from gimmicky pricing strategies to more transparent and consumer-friendly practices. Companies that fail to adapt to these compliance requirements risk legal challenges – even up to 2 million fines – and reputational damage. Hence, the directive will enforce compliance pressure, encouraging businesses to rethink their price planning and pricing strategies. This trend will go through the playing field, regardless of your size as a company.

Why are machine learning and AI the future of product pricing?

AI is a buzzword like no other. We sat down, wrote all we know about it and let you be the judge. Here is a seriously indepth 50-page insights on how to use artificial intelligence in pricing. Hope you find it useful!

Data-driven pricing to help strategic planning

As companies are faced with planning more thoroughly what they do in pricing, they need more time. In the current economic landscape hiring more people is different from what companies are willing to do. That is why we predict that many companies will adopt a more data-driven approach to their pricing.

As with AI, automation will not be just a trend; it’s a continuous strategic shift. Companies will move beyond the tactical aspects of pricing individual items to a more strategic view. By leveraging data-driven automation, where pricing considers aspects like runrate, stock levels, seasonality, profit forecasts, etc., businesses can analyze and react to accurate data and make informed decisions about pricing at any level. This strategic shift will ensure that companies can focus their time on building the competitive edge, instead of fighting in the trenches every day.

In conclusion, 2024 heralds a new era in pricing strategies where AI meets basic planning. Where transparency and digital creativeness play pivotal roles. By embracing these ecommerce pricing trends, companies can streamline operations, enhance market competitiveness, and achieve sustainable growth. Welcome to 2024, where intelligent pricing drives business success.

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Mastering Seasonal Pricing: Boosting Sales with Timely Adjustments

Elina Kotamäki — Thu, 30 Nov 2023 12:31:40 +0000

The importance of seasonal pricing cannot be emphasized enough, as most shoppers are always on the lookout for the best deals and tend to delay their shopping until the onset of seasonal campaigns. As consumer behavior fluctuates with holidays, festivities, and changing weather patterns, strategic adjustments to pricing can be a powerful tool for boosting sales.

Let’s dive into the importance of seasonal pricing in e-commerce and how pricing software serves as a dynamic ally in automating adjustments to capitalize on peak seasons and holidays.

Understanding the Significance of Seasonal Pricing

Seasonal pricing is not merely about adjusting prices during holidays or specific times of the year; it’s about aligning your pricing strategy with the natural changes of consumer demand. Different seasons bring unique opportunities and challenges, and a well-crafted seasonal pricing strategy can help retailers stay responsive to these fluctuations.

By understanding the dynamics of consumer behavior across different seasons, you can tailor your pricing models to reflect the preferences and purchasing patterns of your audience. For instance, during peak holiday, black friday, back-to-school or spring cleaning seasons, consumers might be more receptive to promotions, discounts, or bundled offers. On the other hand, certain products may witness increased demand during specific weather conditions, such as warm clothing in winter or outdoor equipment in summer.

But seasonal pricing isn’t just about raising or lowering prices. It includes the strategic introduction of limited-time offers, exclusive promotions, or special edition products that align with the thematic elements of a particular season. This not only adds a sense of urgency and exclusivity but also enhances the overall customer experience. By embracing a flexible and adaptive approach to pricing throughout the year, as a retailer, you can not only meet customer expectations but also drive revenue growth and foster brand loyalty.

Try us out for free

Take a spin with our free trial for Shopify to give you a thorough outlook on how we could support you.

How Seasonal Insights Drive Smart Adjustments

Pricing software is like a guide based on data, offering useful information about seasonal patterns, past buying habits, and market trends. Retailers can use this information to figure out when people are likely to buy more of certain products. This helps them set prices in a way that maximizes profits.

Automating Adjustments for Operational Efficiency

One of the key advantages of pricing software is its ability to automate pricing adjustments based on predefined rules and criteria. Instead of manual, time-consuming updates, retailers can set automatic pricing rules that align with the expected shifts in demand during specific seasons. This not only streamlines the process but also ensures timely adjustments, leaving you free to focus on other strategic aspects of your business.
For example, you can set a specific rule that when your demand decreases, your products’ prices will drop specific percentages.

Tailoring Prices for Seasonal Promotions

Beyond adjusting prices for peak seasons, pricing software enables retailers to create targeted seasonal promotions. Whether it’s a summer clearance or a winter holiday sale, automatic pricing rules can be applied to specific products or categories, driving customer engagement and increasing conversion rates during key shopping periods.

To read: Case studies

Explore real-world examples of some e-commerce retailers that have mastered pricing with the help of pricing software. Understand the challenges they faced, the strategies they employed, and the tangible results achieved in terms of increased sales, customer satisfaction, and overall business growth.

Conclusion

In conclusion, mastering seasonal pricing is a nuanced art that requires a keen understanding of consumer behavior and the right tools to implement dynamic adjustments. Pricing software empowers e-commerce retailers to navigate these complexities with precision, ensuring that they not only meet but exceed customer expectations during every season.

Embrace the power of automated adjustments and insights for a full potential of seasonal pricing in your e-commerce journey!

For Shopify apps, find out more about discount campaigns here!

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5 E-Commerce Pricing Pitfalls to Avoid: Lessons from Industry Leaders

Elina Kotamäki — Tue, 28 Nov 2023 15:03:24 +0000

Embarking on the e-commerce journey entails more than just selling products online; it’s a dynamic dance of strategy and precision. Setting the right prices is crucial for businesses, but it can be tricky. This quick read explores the mistakes made by industry leaders in pricing and reveals the common pitfalls to avoid. Discover how advanced pricing software can be a reliable guide for e-commerce success.

Pricing Pitfall 1: Overlooking Competitive Pricing Dynamics

Mistake: Setting prices in isolation without considering competitors’ strategies.

Solution: Use pricing software to conduct real-time competitive analysis. Identify optimal pricing points based on market trends, competitor pricing, and customer behavior.

Leveraging advanced pricing software can provide a powerful solution by enabling real-time competitive analysis. Such software uses sophisticated algorithms to gather and analyze data on competitors’ product pricing and market trends.

By incorporating pricing software you gain the ability to dynamically adjust prices based on the rules that you set compared to your competitors. For instance, when a competitor raises their prices by 20%, your prices will automatically rise or lower accordingly. This ensures that your pricing remains competitive and responsive to changes in the market environment.

Software can automatically collect and process data from various sources, offering valuable insights into competitor pricing, promotional activities, and customer preferences.

Furthermore, pricing software can assist in scenario analysis, allowing you to simulate the potential impact of different pricing strategies before implementation. This proactive approach enables you to anticipate market reactions and fine-tune your pricing strategy accordingly.

Want to try out Sniffie?

Take a spin with our free trial for Shopify to give you a thorough outlook on how we could support you.

Pricing Pitfall 2: Ignoring Seasonal and Demand Fluctuations

Mistake: Failing to adjust prices during peak seasons or when demand fluctuates.

Solution: Leverage pricing software that incorporates dynamic pricing algorithms and can prepare your campaigns for you. Automatically adapt prices based on seasonal trends, demand spikes, and inventory levels.

By incorporating dynamic pricing algorithms, businesses can ensure that their pricing strategy aligns with the ebb and flow of market demand. Software analyzes real-time data, considering factors such as historical sales patterns, competitor pricing, and current inventory levels. This information is then used to optimize prices, maximizing revenue during peak seasons and preventing overstock situations during periods of lower demand.

Furthermore, pricing software allows for the creation of customized pricing rules based on specific business objectives. It can factor in external variables such as holidays, promotional events, or industry trends to fine-tune pricing strategies. This flexibility ensures that pricing decisions are aligned with both short-term market conditions and long-term business goals.

Pricing Pitfall 3: Discounting Without Strategy

Mistake: Providing discounts without considering the impact on profit margins or long-term customer perceptions.

Solution: Use software to analyze the effects of discounts on profitability. Implement strategic discounting based on customer segments, purchase history, and promotional goals.

Adopt a strategic approach to discounting that takes into account both short-term sales goals and long-term profitability. Pricing software can help identify the most effective discounting strategies for your products, ensuring that discounts are targeted and align with overall business objectives.

Moreover, pricing software can assist in setting discount thresholds and limits to prevent excessive discounting that might negatively impact profitability. In addition, some software can even help you simulate the most optimal discount percentage for your products according to historical data and market changes.

Why machine learning and AI are the future of product pricing?

Pricing Pitfall 4: Manual and Time-Consuming Pricing Processes

Mistake: Relying on manual processes for pricing updates, leading to errors and inefficiencies.

Solution: Adopt pricing software that automates routine tasks. Ensure seamless updates, reduce errors, and free up time for strategic decision-making.

By automating pricing updates, businesses can eliminate the risk of human errors that may occur during manual data entry or calculation. Software can handle repetitive tasks efficiently, reducing the likelihood of pricing discrepancies and ensuring that updates are executed accurately and consistently.

Additionally, the automation provided by software enables you and your teams to focus on strategic decision-making rather than getting bogged down by routine operational tasks. This shift in focus can lead to more thoughtful and data-driven pricing strategies, ultimately contributing to improved business performance and competitiveness.

Pricing Pitfall 5: Lack of Pricing Transparency

Mistake: Failing to communicate pricing changes clearly to customers and neglecting legal and regulatory considerations in pricing.

Solution: Display real-time price adjustments and provide explanations to build trust with customers. Stay informed about industry regulations and ensure your pricing practices align with legal requirements.

To address the challenge of unclear communication, businesses should leverage pricing software designed to facilitate transparent communication with customers. This software can display real-time price adjustments and provide detailed explanations for changes, fostering trust and understanding.

To mitigate regulatory risks, it is essential to select pricing software that incorporates compliance features. For instance, Sniffie’s pricing software ensures that your pricing complies with the Omnibus Directive, a consumer rights directive that is in place in all of the EU.

Case Study: Sniffie Software Drives Success for Kipukauppa

Kipukauppa.com, a Nordic pain-relief product provider, sought to enhance marketing ROAS and optimize pricing for seasonal items. With €3.2M in turnover, they turned to Sniffie for a Shopify pricing solution.

In the competitive pain-relief market, Kipukauppa.com aimed for growth while conducting responsible business. The challenge was to optimize seasonal product pricing, minimizing excess stock, and determining the right discounts.

Sniffie’s advanced pricing features, including markdown pricing, provided the ideal solution. This strategic approach transformed slow-selling items into attractive deals.

The first markdown campaign was a success:

Clear Understanding: Meticulous planning led to a clear forecast on results and profits.
Sales Boost: The campaign generated an impressive €250,000 in sales with good profitability.
High ROAS: Kipukauppa.com achieved more sales cost-effectively, with a significantly higher ROAS compared to previous campaigns.

Sniffie proved to be a game-changer, enabling Kipukauppa.com to optimize prices effectively and turn challenges into milestones. In the competitive e-commerce landscape, the right pricing solution can make all the difference, as this case study illustrates.

Read the case in detail here:

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The post 5 E-Commerce Pricing Pitfalls to Avoid: Lessons from Industry Leaders appeared first on Sniffie.