Ensure senior leaders are all aligned on pricing strategy.
Lack of alignment can result in limiting the tool’s usefulness. Also, changing the strategy during or after a rollout can limit the tool’s potential.
Vet your data inputs.
Typically, the more accurate your data, the better your results. If cost information is incorrect or lacks sufficient historical data, recommendations will be impacted.
Set clear standards and guardrails.
Ensuring your whole team is trained on revised pricing processes may seem obvious, but it can make or break the transition. It’s also important for leaders to set clear boundaries for when analysts can make their own decision versus when they require approval (like on a price change of more than 10%). This gives analysts the right level of flexibility and accountability.
Choose products carefully.
Not all products are equal, and sometimes items with low turnover don’t, for example, have enough historical data for pricing software to accurately recommend a price.
Stay focused on your strategy.
Decisions around loyalty programs and discounting must also be made with your pricing strategy in mind. Pricing software such as the solutions offered by Pricefx can ensure these remain aligned. There are other pricing elements that are not managed by a pricing software that must also be aligned, such as in-store product placement, signage and advertising.