Test d’Achat-Euroconsumers  Case Study

Test d’Achat-Euroconsumers Case Study

CUSTOMER’S REQUEST

Euroconsumers, customer of WORKIT for several years, offers consumers in Belgium, Italy, Portugal, Spain and the Netherlands, sites of information, advice and price comparison referring to the independent and objective data given by WORKIT Software.

Euroconsumers wished to expand its services to internet users by providing a plugin (or a browser extension), which will activate on the main e-commerce sites of different countries, in order to keep consumers more informed of the cheaper sites.

THE SOLUTION PROPOSED BY WORK

WORKIT  is already collecting daily data of prices, delivery costs and availability of the main products of consumer electronics, wine and DIY for Euroconsumers, on more than 500 e-commerce sites across Europe and South America.

For Euroconsummers, we have developed browser extensions compatible with Chrome and Firefox for each of the consumer sites which are available to be downloaded on the Chrome and Firefox Web Store.

Italy:  Lo trovo a meno ChromeLo trovo a meno Firefox
Portugal:  Melhor Escolha ChromeMelhor Escolha Firefox
Belgium NL:  Beste Prijs – Test Aankoop ChromeBeste Prijs – Test Aankoop Firefox
Belgium FR:  Meilleur Prix – Test AchatsMeilleur Prix – Test Achats

We also designed a web API, where browsers communicate in real time with the WORKIT database by identifying products viewed by users. With this API, the users could receive all the useful information to find the best deal for the desired product: list of retailers, prices, availability, delivery costs etc ..

The technologies, quality and speed of service are the result of the expertise of WorkIT Tracker.

THE SERVICE RENDERED BY THE APPLICATION

When you visit an e-commerce site whose product sheet is available in its database, the plug-in will consult the WorkIT database in real time to check if there is not a cheaper offer on another website. If another site offers the same product at a cheaper rate for the consumer, the plugin will activate and offer to go to the site of Euroconsumers (eg Testachats) to see what is the cheaper website.

If the user clicks on the Testachats banner, he will be sent to the Euroconsumers website, for example www.test-achats.be for Belgium, to see which sites offers the product at a better price.

 

This solution is available for several European countries: Belgium, Portugal and Italy.

Télécharger et essayer le plugin

Italy :
https://chrome.google.com/webstore/detail/lo-trovo-a-meno/flocgkoenkjffgdappcldfaacdleoccm
 https://addons.mozilla.org/firefox/addon/lo-trovo-a-meno/

Portugal :
https://chrome.google.com/webstore/detail/melhor-escolha/jihbbjcnffgclkhggbakgblkfjdjocej
https://addons.mozilla.org/firefox/addon/melhor-escolha/

Belgium NL :
https://chrome.google.com/webstore/detail/beste-prijs-test-aankoop/kihnmpgondbkkndobcolgbeififgmlpb
https://addons.mozilla.org/firefox/addon/beste-prijs-test-aankoop/

Belgium FR :
https://chrome.google.com/webstore/detail/meilleur-prix-test-achats/ceopphdidbecppnapfpegcppjgjgmohh
https://addons.mozilla.org/firefox/addon/meilleur-prix-test-achats/

Brief Introduction of Euroconsumers

Euroconsumers: Consumer Organization in Europe, previously known as Conseur – European Consumers, is a private independent corporation, based in Luxembourg, that works in BelgiumSpainPortugalItalyLuxembourg and Brazil.

The main objectives of Euroconsumers are to promote and defend consumer interests, solve their problems and help them exercise their fundamental rights (freedom of choiceaccess to informationeducation and justice, and right to health, safety and a healthy environment).

Case Study – Luxurious Cosmetics

Case Study – Luxurious Cosmetics

Customer’s request

Our client is a major international luxury brand. Its pricing department was equipped with a tool considered too rudimentary to allow a sufficiently precise analysis of the prices of the competitors on the whole variety of products and all the countries. 

Therefore they turned to WorkIT, a specialist in monitoring competitor’s pricing and who is already present on this market, to develop a tool capable of providing an accurate real-time analysis of the competitors’ positioning in a given geographical area.

The solution Workit Brands

WorkIT has chosen to develop a full-fledged Workit Brands application dedicated to the luxury business. Data is collected daily from 120 websites in 15 countries covering 3 continents:  America, Europe and Asia. On the one hand, the application allows to select specific products based on numerous filters (category, sub-category …, brand, capacity, color …) and then applies different types of calculations to make reports on these selections.

All the reports can be generated as price analysis or price index reports and several options are available. The user can:

  • Choose the axes of analysis (brand, distributor, country)
  • Define the time range (a single or period, a comparison between two dates or two periods).
  • Generate a trend chart over a period of time.

Benefits rendered by Workit Brands

This application allows a brand (or a distributor) to:

  • Compare its catalog structure (its assortment) with that of its competitors
  • Work on its price positioning on a product or a selection of products
  • Control its positioning in a particular geographical zone
  • Compare the price evolutions before and during a particular event (Mother’s Day, Christmas, Black Friday) from one year to another…

Data is updated daily and new websites will be added regularly.

                                 

 

New version of WorkIT Analytics

New version of WorkIT Analytics

We are proud to announce the release of a new version of our software WorkIT Analytics.

Our solutions provide data and tools for e-commerce players to analyse and understand the market in a highly detailed and comprehensible manner.

By collecting, processing and analysing information such as prices, delivery fees, stock availability, as well as promotional activities and product reviews, WorkIT Software allows retailers and brands to fully manage their position against their competitors, stakeholders and consumers.

  • Retailers can optimise their price positioning or their product range by accessing the data of hundreds of websites.
  • Brands can monitor their distribution, manage their brand visibility on marketplaces and use product specifications or reviews to run trend analysis.

WorkIT Analytics is available as a SaaS service on various product categories such as Electronics, Cosmetics, Toys, Fashion, Childcare or Spirits & Liquors. Our data is updated several times a day, all week long, ensuring the most up-to-date information possible.

11 Essential E-Commerce Pricing Strategies To Beat Your Competition

11 Essential E-Commerce Pricing Strategies To Beat Your Competition

Pricing items online is a daunting task, as well as online price tracking.

It is a trial and error experiment as you don’t know a priori the prices that will be more attractive to your potential customers.

That is why, we wanted to help by clearly identifying essential & common pricing strategies that will help you make more sales and enable you to beat your competitors.

Here are 11 e-commerce pricing strategies examples to help you in that process!

 

 

1 • TARGET RETURN PRICING: SET THE PRICE THAT WILL HELP YOU ACHIEVE YOUR ROI

All companies shall determine the price of their products based on the expected rate of return of their venture.

All business school students know break-even margins, profit margins equations. An equation is used to set the price of a product that will yield a certain profit if a given quantity of the product is sold. A company can establish a price where a given benefit will be realized when a certain level of sales is achieved.

Under this strategy the manufacturer is supposed to review various scenarios and guess the impact it would have on sales volumes and profits. Grainger is a B2B E-Commerce site that uses this strategy to sell its products.

 

 

2 • PSYCHOLOGICAL PRICING: TRY TO MAKE YOUR PRICES EMOTIONALLY APPEALING

Psychological pricing is also known as charm pricing.

It is one of the oldest pricing methods, relying on a theory that some prices have psychological influence. Prices are indicated as odd prices. It involves pricing slightly below a round number. For instance, you may price a product at $2.99 instead of $3. Many will buy the former. You can check our full article about Psychological Pricing Tricks.

This strategy is driven by the client’s emotional response. This pricing makes a customer buy something believing it is cheaper, although it is not. It is one of the most widely used techniques. For instance, Apple products are priced using the “$999” model.

 

 

 

3 • COMPETITIVE PRICING: SET YOUR PRICE BASED ON YOUR COMPETITION

Competitive pricing means using your competitors’ prices to set your own.This method is common for companies selling identical products or close substitutes that have the same level of satisfaction. It is also common for goods that have been in the market for a long time, leading to the entrance of many competitors.

This pricing can be used to sell hardware at a loss if you know the software will sell at a higher price resulting in overall profit. CDW Corporation uses this pricing strategy to sell technology products and solutions and services to various businesses.

In an online world where visitors compare A LOT before purchasing, competitive pricing has turned out to be crucial for e-merchants.

If you need help monitoring your competitors’ price, do not hesitate to contact us to get a quotation: WorkIT Software helps +180 e-commerce customers (brands or distributors) tracking their competition price.

 

 

4 • VALUE-BASED PRICING : SET YOUR PRICE BASED ON THE VALUE YOU BRING TO THE TAPE

Value-based pricing is based on the estimated value of a product to the customer, instead of the cost or historical price. Value-based pricing means setting a price that most consumers are willing to buy at.

This pricing method is ideal for companies producing goods with unique features to meet customers’ expectation. Also companies in the brand-conscious segment such as Under Armour use this strategy. Their customers buy their products at higher prices because of the integrity and brand of the product, which they feel they will be unable to find anywhere else.

 

 

5 • RELATIVE PRICING: SET YOUR PRICE TO MAKE YOUR PRODUCT PART OF A CERTAIN CATEGORY

Relative pricing involves pricing a product regarding another. It is an opportunity cost. An increase in the price of a given product without a corresponding increase in the price of other commodities is an indicator of the relative price increase. It is not recommended to charge low prices.

Many companies try to copy others when setting and changing their prices. When you price above the level of your rivals, customers will link it with luxury, quality, and prestige. Apple uses this strategy when pricing their products. Their products are more expensive than others, and their clients associate that with quality.

 

6 • COST-PLUS PRICING

It is also called Keystone or mark-up pricing. It includes the calculation of the cost of a product and adding a mark-up. This technique sets a price that is higher than the cost of production and gives a certain level of profit for a company to reach a given rate of return.

Higher mark-up price is recommended for online businesses facing a slow rate of turnover, have significant shipping and handling costs, and have scarce products. This strategy ensures you are always making a profit. McMaster-Carr uses this approach to supply industrial and commercial products worldwide.

 

 

7 • THE POWER OF NINE

A study was done to test the power of 9. An item was selected and tested at three different price levels, $34, $39 and $44. The one selling at $39 made more sales than even the one that was selling at $34. Even when included at discounted prices, the number 9 outperforms others.

Many online companies use this number in their prices. This has helped them make more sales than when they would have used other numbers. This technique is more efficient in price-conscious markets than in other markets.

 

 

8 • CONTEXTUAL PRICING

Under this technique, the seller changes the price depending on specific factors within its environment.

The demand for particular products changes depending on the time of the year. Also, product demand and price is affected by other products offered at that place.

Under this strategy, the price of a product is affected by other factors and not the product alone. In e-commerce, an update on the website and branding may make your products appear more elegant and luxurious hence justifying a price increase. For instance, during Valentine or Black Friday, pricing evolve a lot.

 

 

9 • LOSS-LEADING PRICING

Loss-leading pricing involves selling particular products below their cost to attract more buyers who later buy the most valuable goods. Price is an important determinant of demand. Low prices lead to high demand for a product. This technique aims at creating new visitors to an online website. It can be done by giving free products to induce subscription.

This pricing is ideal for firms that want to penetrate a given market, to introduce new products or to dispose of the old stock. It enables new businesses to get new customers for their products. Amazon has successfully used this strategy to grow. The 2014 Fortune 500 list ranked Amazon number 35.

 

 

10 • DYNAMIC PRICING

It is also referred to as real-time pricing and involves setting prices that are highly flexible. This strategy aims at allowing price changes over the internet depending on market demand. This pricing method uses bots to change prices depending on the business rules. Bots are software agents who collect data to adjust the price of a product correctly.

This pricing is the best one to ensure profitability. Out-of-stock situations are the best times to raise prices as customers are looking for these products on various websites. During festive seasons, e-commerce sales depend on this strategy to make simultaneous pricing decisions.

 

 

11 • ANCHOR PRICING

Under this pricing method, decisions are based on the first piece of information that a customer is offered. The price of one product is contrasted with that of another product. Studies have shown that the clients are affected by the price of other close items when valuing a given product.

Anchor pricing allows sellers to place premium products near standard ones helping customers see the difference. This strategy is ideal when introducing a new product. Aweber uses this technique in assisting their clients in choosing their preferred advanced pricing plan.

 

 

CONCLUSION: TEST, LEARN AND BEAT YOUR COMPETITION

To be successful in e-commerce, you need to regularly monitor market conditions and carry out the necessary changes to remain competitive. Each pricing strategy has its strengths and weaknesses, and you might need to test a few different ones to find the best strategy which will fit your business.

 

Competitive Price Intelligence: 7 things to know

Competitive Price Intelligence: 7 things to know

Competitive Price Intelligence is the practice allowing a company, a retailer or a brand, to track competitor’s prices on a permanent or regular basis, in order to monitor its position within the market relative to competitors.

 

1 • COMPETITIVE PRICE INTELLIGENCE: WHAT IS IT?

Hence, a retailer can get insights into the market it operates in and adapt its distribution strategy so to gain competitiveness. On the other end, a manufacturer can control its retailers’ actual pricing strategy for its own product range. That is why the use of competitive price intelligence tools is essential to develop an efficient sales strategy and constantly help secure its position on highly-developing markets, or to optimize the profit margin, on busy and competitive markets.

Given the increasing demands from the market, companies are now struggling to perform this practice manually. Indeed the quantity of data to process and the booming e-commerce market prevent them to do so. Therefore they now turn more and more to external solution providers, who bring them the intelligence they need whenever they need it.

 

 

2 • WHO IS USING COMPETITIVE PRICE INTELLIGENCE SOLUTIONS?

This method is mainly used by retailers seeking to position themselves on their market, but also by manufacturers seeking to monitor their products’ sales performance, as well as the respect showed by their distribution network for their trade policy. Some retailers may also use conversion rate optimization tool to optimize their performance, such as Omniconvert.
For example, in Europe, the main players of the volume retailing industry actively use competitive price intelligence to monitor constantly their market position: CDiscount, Dixons, ShopDirect, Fnac, Bosch, Sony, Samsung and many others…

 

3 • COMPETITIVE PRICE INTELLIGENCE: WHAT IS IT FOR?

The use of competitive price intelligence tools allow to better understand the pricing strategy of the different players on a target market. Made aware of the market’s evolution and trends, the company is empowered to adapt its sales strategy accordingly, so to increase its product mix and product range’s competitiveness, and monitor the performance of its pricing and sales policy.

Technological advancements make the competitive price intelligence process much easier, thanks to new specialized software. They allow companies, brands and retailers, to take a deep dive into analyzing their own positioning on the market, as well as their competitor’s, at different levels: mix, range, products, etc. This way, companies are provided with a clear vision of their market’s state, their competitiveness and positioning relative to the competition.

Therefore, competitive price intelligence allows the players of volume retailing industry to always stay aware of markets moves, especially during periods of intensive promotional activity (sales, New Year etc.), and optimize their prices accordingly. This help them maintain, nay increase their margin ratios. Finally, companies are also able to ensure consistency.

 

4 • THE DIGITIZATION OF COMPETITIVE PRICE INTELLIGENCE VS THE BOOM IN E-COMMERCE.

Over the last few years, the boom in e-commerce activities has deeply transformed the retailing industry. In 5 years, the number of online retail stores has been increased by more than 3, and the French online business industry has, by itself, more than 100,000 retailing websites, more than 75% of distance selling industry. On top of that, Internet forces the retailing industry to be constantly more flexible and responsive, which increases the brands and retailers’ needs for an efficient price intelligence strategy, especially against their fellow e-commerce players.

In an interview dated November, 24th, 2014, Bernard Euverte, President of WorkIT Software, a software provider specialized in competitive market intelligence, states that at first:
“Nobody cared about online prices, e-retailers were contenting themselves with being the least expensive as possible, and brands were hardly paying attention to e-commerce. Internet has quickly established itself as THE market reference for pricing strategies, even in brick-and-mortar retail stores”.

In fact, e-commerce empowers consumers to easily compare e-retailers’ products, offers, and prices, leading to an increased market’s dynamism and volatility. Faced with increased competitionprice has become a key-element in buyer’s decision-making process. That is why it is now necessary to track market prices changes in an efficient way, so to respond quickly and stay competitive; this makes the use of price intelligence software quite crucial in volume retailing industry, especially when it comes to e-commerce.

 

5 • HOW DOES IT WORK?

Price Intelligence software track and collect market prices on the internet, on a frequent basis, and reflect them back to the user through the interface, providing him with a real-time vision of its positioning compared to the competition.

 

6 • FOR WHICH RESULTS?

This way, the Price Intelligence software user can get insights into his own positioning within the market, but also his competitors’, through the analysis of the reported data according to some specific criteria of his choice, and then conduct a market survey which allows quick and well-considered strategic decisions.

The user is then able to optimize his offer at different levels. In the example of a retailer:

  • To monitor the market aggressiveness and adapt its sales strategy accordingly, in order to secure profit margin with regards to competition.
  • To optimize its product mix for special events (Christmas, Valentine’s Day, Back To School, Black Friday, …) so to answer its market’s needs.

Brands, on their end, can monitor their products’ positioning within the market, by comparing them with similar items offered by the competitors’ and measure their retailers’ efficiency and performances, or even their products’. This process also allows them to make sure, regarding exclusive distribution agreements, that only authorized dealers are selling the products in question.

Ressources :

  • WorkIT’s price monitoring software
Learn about Minimum Advertised Price (MAP) in the US – Definition

Learn about Minimum Advertised Price (MAP) in the US – Definition

In today’s multichannel world, it’s hard to keep the market balance and enable retailers to play on a level playing field. Some apply the “make it up in volume” policy, which allows them to offer lower prices and still generate high gross margins. However, this is unfair towards small retailers. The concept of MAP price a.k.a manufacturer advertised price was implemented to keep the market game honest. At WorkIT Software, we help you track online prices with our price monitoring software.

DISCLAIMER: Minimum Advertised Price (MAP) is a US-only regulation. Therefore this article applies only to the US.

 

 

WHAT IS MAP PRICE – A DEFINITION?

Minimum advertised price is set by the manufacturer and marks the lowest price a retailer can use to promote the product. Whether it’s an online ad, a catalog or any other way of advertising, a retailer is not allowed to go below that price.Online retailers are not excluded from the policy; they are expected to honor MAP as well.

This doesn’t necessarily mean that a retailer must sell above a given MAP. The rule only concerns advertising of the product. Once a customer comes to the store, the retailer keeps the option of providing an extra discount to said customer.

There are good reasons to follow minimum advertised price (MAP) set by the manufacturer. For instance, if a retailer doesn’t honor it, the manufacturer may refuse to send him more products or his selling privileges may be revoked, damaging their business relationship together in the long run. On the other hand, a retailer who nurtures good relationship with the manufacturer might benefit from special favors, such as the possibility to send back to the manufacturer products that weren’t sold for instance.

 

 

MINIMUM ADVERTISED PRICE MONITORING

There are various professional MAP monitoring software available that can perform map pricing monitoring and provide insightful data for manufacturers and retailers alike. These tools help keep everything running smoothly by sending a notification as soon as a violation is made. (See “Alerts” by WorkIT Software)

Minimum advertised price monitoring software helps manufacturers assess prices for their products across retailers. The retailers, on the other hand, can monitor their competition. If a violation occurs, the software provides evidence by offering a screenshot of a product page. The manufacturers can then send a warning to disobedient retailers or even take actions against them.

 

 

BENEFITS OF MAP

MAP retail pricing is crucial for a lot of reasons, including:

  • It promotes fair competition across various distribution channels – same rules of the game apply to both small and large retailers
  • It prevents under-pricing and protects seller margins – no retailer can use the unfair “make it up in volume’ policy
  • It maintains value of the brand – if someone offers a product at a ridiculously low price, it lowers the value of that product in the eyes of customers

MAP price monitoring is essential to keep this pricing policy functioning at a maximum level. In a nut shell, having a valuable checking system that discovers violations as soon as they are made helps to maintain the pricing integrity of the market.

Learn more :
Competitive Price Intelligence

Competitive Pricing – Definition