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Software Advice IndustryView: Retail Pricing Software Report

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

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Software Advice IndustryView: Retail Pricing Software Report

  1. 1. Software Advice IndustryView: Retail Pricing Software Report Trends and best practices from the industry
  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. @SoftwareAdvice /company/software-advice @SoftwareAdvice/SoftwareAdvice Read about our findings in more detail.Read Report

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