3 Fail-proof Retail Pricing Strategies That Work | Quantzig

Aug 30, 2019

The technologically inclined and well-informed customers of today demand robust solutions and timely service that cater to their needs. The use of digital platforms has significantly influenced customer buying behavior, due to which businesses are now digitizing their business processes including – merchandising, sales, customer interactions, and retail promotions. The digital journey of customers encompasses the entire purchase lifecycle of a prospect right from discovery to loyalty and is increasingly becoming complex with the proliferation of new and advanced technologies that possess the capability to transform business landscapes. To succeed in such a complex scenario, businesses are now looking at leveraging advanced retail pricing strategies to differentiate themselves from their peers.

A customized retailer pricing strategy can help you gain a leading edge in the market. Contact us to learn more about our solutions.

Three Proven Retail Pricing Strategies that Help Drive Growth and Profitability

Risk-based Pricing

Risk-based pricing is one of the most commonly used retail pricing strategies that often recommend a better way to price products by analyzing consumer credit risks and other factors which could indirectly impact growth. However, it’s crucial to note that the limitations associated with such a pricing strategy include imperfect customer segmentation, negative customer reactions, and declining sales. Theoretically, risk-based pricing strategies are designed to help businesses align price and costs of their offerings by increasing the price for higher-risk customers and decreasing the price for the lower-cost and better-risk customers. Unlike the other retail pricing strategies, risk-based retail pricing strategies solely focus on risk as a key component for setting optimal prices.

Dynamic Pricing

Before diving headlong into dynamic pricing, retailers need to have a clear pricing strategy, especially those with physical and digital channels. Being one of the most popular retail pricing strategies, dynamic or spot pricing strategy offers several opportunities for business growth. Dynamic pricing strategies are designed to automatically identify the optimal price for products by analyzing several internal and external factors that impact profitability and market demand for a specific product category. Adopting such an approach enables businesses to incorporate market demand, customer sentiments, competitor pricing strategies, and inventory availability into their pricing algorithm to achieve better business outcomes.

Request a FREE proposal and gain in-depth insights and expert recommendations from our analytics experts.

pricing strategies

Competition‐based Pricing

Competition based retail pricing strategies help businesses to analyze competitors’ prices for a particular product category before setting optimal prices for the launch of new products or services. In this approach, the price of competing products is used as benchmarks to identify the most profitable pricing strategy. However, it is crucial to note that setting a price above the benchmark will help businesses to drive higher profit margins but will result in the sales of fewer units as most customers prefer purchasing producing at lower prices.

Ready to Harness Game-Changing Insights?

Request a free solution pilot to know how we can help you derive intelligent, actionable insights from complex, unstructured data with minimum effort to drive competitive readiness, market excellence, and success.

Recent Blogs

Workforce Management Trends of 2021

Workforce Management Trends of 2021

Driven by the disruption of COVID-19 and enabled by technology, the world’s business leaders can redesign workforce management and redefine ways of working. Organizations are now rethinking workforce management, planning, performance, and experience strategies. Now,...

read more
Tech Trends 2021

Tech Trends 2021

After disruptions caused by the coronavirus crisis starting in 2020, businesses are looking forward to getting back on course and becoming sustainable. 2020 has created havoc and made holes in long-standing norms about how companies operate. It has become evident that...

read more
Sustainable Supply Chain and Big Data Analytics

Sustainable Supply Chain and Big Data Analytics

Sustainability concerns are sprouting up in every industry. A growing population of consumers now prefer eco-friendly and sustainable businesses. Organizations are striving to address this concern, while improving internal systems and processes, by developing supply...

read more


Our advanced analytics expertise spans across industries, sectors, and functions, which enables us to deliver robust, agile solutions to all our clients. These are our core competencies, formed through years of experience.


Our free resources shed light on our extensive expertise and equip you with information to accelerate decision-making, growth, and innovation.