This report examines the best retail pricing strategies by different retail sectors to show business owners which pricing software is right for their business.

1. Software Advice IndustryView:
Retail Pricing Software Report
Trends and best practices from the industry

2. Retailers are constantly manipulating their prices in order to attract more
customers and grow their revenue. Whereas only larger corporate retailers could
afford retail pricing software, now it’s widely available to businesses of all sizes.
Still, the question remains the same:
• What are the best pricing strategies for retail businesses?
Abstract

3. A majority of retailers are currently using more than 10 different pricing
strategies. Additionally, a staggering 95 percent are using five or more.
None1%
1-21%
3-43%
5-611%
7-814%
9-1018%
More than 1052%
Number of Pricing Strategies Used

4. Percent of sample
Discount and below competition are two of the most used pricing strategies. While
they’re great for short-term games, they aren’t typically sustainable over time.
Most Used Pricing Strategies
Discount
Bundle
Below competition
MSRP
Odd pricing
0% 20% 40% 60% 80% 100%
78%
85%
90%
90%
97%

5. Nearly half of department retailers say discount pricing is extremely effective. This
along with below competition both attract customers with “bargain” prices.
Discount
Below competition
Bundle
Price lining
MSRP
Dynamic
High-low
0% 20% 40% 60% 80% 100%
ExtremelyNot at all
Not used
Most Effective Pricing Strategies for Department Retailers

6. Discount is again the most used pricing strategy for specialty retailers. Bundle is
the second most used and is a great way for businesses to turn over inventory.
Discount
Bundle
Below competition
MSRP
Odd pricing
Price lining
Dynamic
0% 20% 40% 60% 80% 100%
Extremely Not at all
Not used
Most Effective Pricing Strategies for Specialty Retailers

7. Once more discount is the most effective pricing strategy. However, only 31 percent
cited high-low as effective. This is typically a popular strategy for grocery stores.
Discount
Below competition
MSRP
Bundle
Price lining
Dynamic
High-low
0% 20% 40% 60% 80% 100%
Extremely Not at all
Not used
Most Effective Pricing Strategies for Grocery Retailers

8. E-commerce pricing strategies don’t differentiate from the general consensus.
Discount, below competition and bundle are the three most effective strategies.
Discount
Below competition
Bundle
Dynamic
MSRP
High-low
Price lining
0% 20% 40% 60% 80% 100%
Extremely Not at all
Not used
Most Effective Pricing Strategies for E-commerce Retailers

9. As mentioned before, pricing software is more accessible to smaller retail
businesses than it used to be. Hence the majority of respondents are using it.
Retailer Use of Software to Manage Pricing
Uses software51%
Doesn’t use software39%
Not sure10%

10. One reason that pricing software is more accessible than it used to be is that it’s
being included in integrated retail management suites.
Type of Pricing Management Software Used
Integrated61%
Best-of-breed39%

11. Drastically different, our top two respondents had either more than 50 stores or
only one.
122%
2 - 310%
4 - 57%
6 - 1011%
11 - 257%
26 - 508%
More than 5036%
Respondents by Number of Stores

12. The majority of respondents’ businesses are bringing in less than $11 million
dollars annually.
Less than $1 million31%
$1 - 10 million27%
$11 - 25 million9%
$26 - 50 million5%
$51 - 100 million6%
$101 - 500 million9%
More than $500 million12%
Respondents by Annual Revenue

13. Over 80 percent of our respondents operate within the department store,
specialty retail, grocery or e-commerce sectors.
Department store31%
Specialty retail24%
Grocery14%
E-commerce13%
Restaurant6%
Consignment/resale5%
Convenience4%
Discount3%
Respondents by Retail Sector

14. Software Advice™ is a trusted resource for software buyers. The company's
website, www.softwareadvice.com, provides detailed reviews, comparisons and
research to help organizations choose the right software. Meanwhile, the company’s
team of software analysts provide free telephone consultations to help each
software buyer identify systems that best fit their needs. In the process, Software
Advice connects software buyers and sellers, generating high-quality opportunities
for software vendors.
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Read about our findings in more detail.Read Report