By Jim Dudlicek / NGA Managing Editor and Content Strategist
Traditional pricing methods are often manual and disjointed, making independent grocery pricing, merchandising and category leaders feel like they’re failing to keep up with market demands.
In a recent webinar hosted by Bungee Tech and the National Grocers Association, experts explained how the right data and automated pricing workflows can create a more flexible and impactful pricing strategy to protect margins, add value for shoppers and increase competitiveness with national chains.
The discussion was led by Matt Shachter, senior director for revenue growth at Bungee Tech; and Scott Winburn, senior director for pricing and industry advisor to Bungee Tech.
Here are some key takeaways from the discussion:
Competitive pressure is the top issue related to pricing among grocers, according to a live poll of the webinar audience. Other issues faced by grocery retailers include loyalty, manual processes and innovation.
Everyday events can play into your pricing strategy, including the politization of “price gouging” and debates over dynamic pricing; the lingering impact of inflation that’s keeping shoppers focused on price; and surging sales of private label products.
Understanding the market is important. Grocery continues to be a rapidly evolving landscape. Retailers must strive to build loyalty with value and offer shoppers the best price. That means grocers can’t be static in their approach to pricing. “How people shop has changed … so your strategy has to evolve,” Schacter said. Winburn added, “Value doesn’t always mean the cheapest price in town.”
Why does flexibility in pricing matter so much? Today’s grocery market demands it. Otherwise, you risk eroding your margins and losing shopper loyalty. Prices change regularly, customer preferences shift and competitors are only a click away. Inflexible pricing can quickly become a roadblock to growth.
Technology makes pricing manageable. To make the flexible approach work, retailers need to leverage market intelligence. Bungee Tech’s solution facilitates actionable insights that allow retailers to better understand their competitors as well as their customers, and make informed decisions about a pricing strategy. “Availability of data allows you to see the market differently,” Schacter said, and the tech allows you to act on it.
By automating your pricing workflows, you can not only save time but also ensure accuracy and consistency across your entire operation. Remarked Winburn, “Pricing in its rawest form is a ginormous math problem.”
For more exclusive insights, view a recording of the complete webinar at https://attendee.gotowebinar.com/recording/3895882400853011288.
