Why Should Retailers Use Pricing Tools For Their Businesses

Published on: 11 December 2019 Last Updated on: 15 July 2024

The majority of retail businesses in the world are still dependent on extensive spreadsheets and excel when it comes to pricing strategies. Other than the fact that multiple spreadsheets can cause confusion and duplication, they bring down productivity.

This is why businesses are reinventing themselves and adopting technological innovations to improve businesses. One of the most successful tools that retail businesses are using in 2019 is ‘Pricing Tools’.

In this article, we will look at some major questions like-

What are Pricing Tools?
How can a pricing tool add advantage to your business?
How does the pricing tool help you automate different aspects of the price-fixing strategy?
What are the costs that you are going to incur when subscribing to a pricing tool?

What is a Pricing Tool?

A ‘Pricing Tool’ is a dynamic software, which helps businesses set up their pricing strategy in a dynamic manner. It helps in reducing duplication, accelerates the process in real-time and saves time, which can be efficiently used elsewhere.

If you look at a traditional business, you will find that fixing prices requires three or four people and extensive discussions. By using a pricing tool, you limit all the price related discussion to one workstation only. Modern businesses are adopting smart, automated and powerful pricing tools to improve sales, offer discounts in real-time and transform revenue goals.

An effective and useful pricing tool helps in streamlining the process. It also brings inefficiency into the process. For companies who want to adopt a strategic business plan for long-term growth and sustenance, a pricing tool becomes a necessity.

Advantages of using Pricing Tools:

The following are some of the major advantages of using a Pricing Tool for your retail business-

1. Saves Time that can be productively utilized elsewhere:

Real studies carried out by research agencies show that a good pricing tool saves up to 40 hours per week when it comes to determining to price. This reduction in time can be used to concentrate on some other aspects of improving the business.

2. Dynamic Price-Fixing at one go:

Most retailers fear days like ‘Black Friday’ rather than get excited about them. This is because they worry about fixing prices and attracting users. A pricing tool is very effective especially during holidays, festivals and special sales days. The dynamic pricing means that you need to concentrate just on sales and logistics and leave the pricing part to the tool.

3. Forecast sales and make accurate projections:

Most retailers make manual sales projections. However, there is scope for human error when doing this. A pricing tool through rigorous automation and analytics is able to accurately make sales projections and forecasts. This is an able ally when it comes to sales and marketing.

4. Integrate your ERP and Ecommerce on one Pricing Tool:

Most retail businesses are experimenting with Ecommerce aggressively. Retail businesses can also have other outlets and franchises. This means coordinating everything at one go. Fortunately, a pricing tool is able to integrate ecommerce and ERP in one single platform.

5. Improve sales and increase revenues:

Using an efficient, powerful and affordable pricing tool, which integrates three or four functions, is going to help you improve sales and drive up revenues. Bringing down the decision times, saving hours and eliminating errors is going to help you grow your business.

Can an Automated Pricing Tool Software help a Business effectively?

One of the major challenges, which any retail business faces, is tying loose ends. This means that there are so many verticals when it comes to sales and pricing that it becomes nearly impossible to streamline them all.

Until now, businesses were using traditional methods of working and fixing prices. They started using ERP but were unable to tie it to their other verticals like Ecommerce. Corrective measures that needed to be taken in case of an error delayed processes even further.

A pricing tool is able to blend five or six functionalities, all in one dashboard that can easily be monitored by one person alone. You can never imagine the asset value of something like a pricing tool. It aids businesses in a major way.

By helping, businesses fix projections, set goals and timelines it helps in giving unorganized retail businesses proper shape and character. This, in turn, improves productivity, decreases wastage and improves revenue figures.

Conclusion:

If you are looking to give your business a midlife boost, then you should definitely check out the best pricing tools on the market. Most software companies, which offer pricing tools, offer affordable plans and bundles that are negotiable.

Do let us know what you thought about the article in the comments section below. Do you really think pricing tools are an effective way to boost revenues for retail businesses?

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What to Expect from Upcoming IPOs in the Next Quarter

The Indian IPO market is expected to heat up again in the next quarter. With the economy steadying and market sentiments improving, many companies are lining up their initial public offerings (IPOs) in the coming months. As an investor, especially a retail investor, upcoming IPOs present an interesting opportunity to allocate a portion of the portfolio to high-growth businesses early. However, not all IPOs are created equal. With so many companies hitting the primary market, how do you separate the wheat from the chaff? Which IPOs should one apply for, and what factors should be considered before investing? This blog post discusses what investors can expect from IPOs in the next quarter and provides a framework for analyzing and shortlisting the best upcoming IPOs for your portfolio. Strong IPO Pipeline Investment bankers have a strong pipeline of companies planning to launch their IPOs soon. These include prominent startups from e-commerce, fintech, FMCG, and technology sectors. Some of the major upcoming IPOs to watch out for include the following: Ather Energy: Ather Energy has recently received approval from the capital markets regulator to float its initial public offer. The e-mobility unicorn plans to raise Rs 3,100 crore through its maiden share sale. Oswal Pumps: The IPO can supposedly have mixed fresh issues of equity shares that are worth 1000 crore INR. Also, the offer-for-sale (OFS) of close to 11.3 m equity shares will be made available by promoter Vivek Gupta. Schloss Bangalore: The parent company of Leela Hotel Chains, Schloss Bangalore, is also planning to offer a mix of the latest issue of equity shares (worth 3000 core INR) and the OFS of stocks, which cost around INR 2000 by Project Ballet Bangalore Holdings. iValue Infosolutions: iValue Infosolutions offers various digital services like security analytics and network security. It doesn't have any listed peers on the Indian stock exchanges. The IPO is expected to have only OFS components with 18.7 m equity shares but no fresh issue components with it. Factors to Consider Before Investing in Upcoming IPOs The fast-growing Indian startup ecosystem provides immense potential for wealth creation. It is, however, crucial to remember that IPO investments usually carry higher risks than investing in established entities. An investor must assess multiple aspects of the issue to make informed decisions. Here are some key factors to evaluate: Business Model and Market Opportunity Study the company's business model, target market, and future growth drivers to gauge the strength of the underlying business. Analyse if the company operates in a large addressable market and if tailwinds exist for long-term growth. For example, the rise of online spending presents a huge opportunity for e-commerce and fintech players. Financial Health Review key financial metrics like revenue growth, profitability, cash flows, operating leverage, and capital efficiency to assess the business's financial health. It is better to prefer companies with a proven track record of predictable and profitable growth. Valuations Valuations play a critical role in IPO investing. It is crucial to compare the company's earnings and price-to-sales multiples with listed industry peers to determine if the IPO is reasonably priced or overvalued. It is important to note that tech IPOs in the recent past have commanded higher valuations due to high growth potential. Competitive Advantage It is crucial to understand the company's competitive positioning and moats, such as network effects, branding, or superior technology, that make its business difficult to replicate. Durable competitive advantages suggest that the company can maintain growth and profitability. Risk Factors Carefully read the prospectus's list of risk factors, including operational, financial, compliance, and external risks. Evaluate whether the company has concrete plans to mitigate these risks. Purpose and Use of IPO Proceeds Analyse how the company plans to use the IPO funds. It can be beneficial to look for companies that utilize capital for productive purposes, such as expanding capacity, clearing debt, or gaining strategic capabilities via acquisitions, rather than just providing an exit route for investors. Promoter Credibility and Skin in the Game The credibility of the promoters or founders and their commitment to the business matter a lot. This is usually reflected in the portion of ownership they plan to retain post-IPO. Founders with enough skin tend to take a long-term view of steering the company. Tips for Retail Investors Applying in IPOs Here are some handy tips for retail investors to increase the probability of getting an IPO allotment: Open a demat account with a bank or broker that has a higher allocation in public issues. This can help increase one's chances of allotment. Ensure sufficient funds are in the bank account linked to the demat account 2-3 days before the IPO opens. These funds will be blocked once one applies for the IPO. Focus on IPOs with larger offer sizes and avoid oversubscribed issues. Leverage UPI to apply as it typically has a higher allocation reserved for retail investors. Fill in the bid details carefully, and do not submit duplicate requests from the same account. Conclusion The IPO frenzy is expected to continue in the next quarter. For investors willing to stomach the risk, upcoming IPOs offer an opportunity to allocate a small portion of capital to new-age businesses that could create substantial wealth over long periods. Doing the homework, thoroughly evaluating company fundamentals and valuations, and investing discipline usually helps. Frequently Asked Questions Following are some common questions investors and traders may have about the upcoming IPOs. Q1: What are the key factors one can expect to influence IPO performance in the next quarter? Ans: The performance of IPOs that hit the markets in the next quarter can be expected to depend on several interlinked factors. These include prevailing market conditions, industry trends, company fundamentals, geopolitical events, and overall investor sentiment. Strong economic performance and growth outlook have historically supported higher IPO activity and valuations. Q2: How can investors identify promising IPOs in the upcoming quarter? Ans: Choosing the right IPOs to invest in requires rigorous due diligence by investors. Critical aspects like the company's financial health, growth levers, business model, competition dynamics, industry outlook, and the strength of the management team must be evaluated. Reading the IPO prospectus and analyst reports can help provide valuable perspectives. Q3: Which industries will likely dominate the IPO market next quarter? Ans: Private enterprises from high-growth sectors like technology, healthcare, and green energy can expect to drive IPO volumes in the next quarter. Companies with strong innovation pipelines and a strategy to capitalize on current market conditions will likely draw significant interest. Q4: What risks should investors consider before investing in upcoming IPOs? Ans: While upcoming IPOs are expected to provide exciting investment opportunities, they also carry their share of uncertainty and risks that investors should be aware of. These include prevalent market volatility, chances of overvaluation, lock-in periods, and lack of historical performance data, in addition to the industry-specific and macroeconomic risks. Q5: Are there specific IPOs generating high interest for the next quarter? Ans: Among the upcoming IPOs, companies with strong brand recognition, unique and innovative offerings, established track records, or those operating in areas with massive growth runways can be expected to generate the most investor interest. Tracking financial media coverage and reports prepared by financial analysts can help highlight the important aspects of upcoming IPOs. Q6: How can retail investors participate in upcoming IPOs? Ans: Retail investors should open a Demat account with a leading bank or brokerage firm to access upcoming IPO allotments. They must thoroughly understand the IPO allocation process, categories, and minimum investment thresholds applicable to retail investors. 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Doing business in the UAE: pros and cons

The United Arab Emirates (UAE) has a form of federation that consists of 7 emirates with own ruler in each of them. The state is a major financial and economic center, which policy is focused on attracting foreign investment into the country, therefore, the most comfortable and favorable conditions for doing business are created here. The UAE continues to attract investor interest from different parts of the world. Thousands of expats from the US and UK are now migrating to the UAE to explore setting up new businesses and cater to an affluent target audience. If you are looking to set up a new business in the UAE, and are looking at networking and funding solutions, please visit website. The following types of companies are currently available for business registration in UAE: Local companies (where 51% of shares necessarily belong to the citizens of the Emirates or legal entities owned by citizens) – are able to do business without restrictions on the territory. Free zone companies – are able to do business within the chosen free zones or abroad. Offshore companies (International Business companies) – are prohibited to conduct business within the UAE territory, but are able to open an account in the UAE bank. Opening an offshore company in the UAE on the example of RAK free zone: Located in the northern part of the UAE, bordering Oman, Ras al-Khaimah (RAK) is one of the smallest emirates of the UAE. Great interest in the financial and investment sector of this emirate was promoted by new legislation and regulations adopted by the UAE authorities. This, in turn, led to business and investment opportunities for individuals and companies around the world. An International Business Company in RAK free trade zone can do business outside the territory of the country, own property in the UAE, be used as a logistics company, maintain bank accounts, and much more. Basic requirements for opening such a company: the minimum paid-up share capital - 10,000 AED; the minimum number of shareholders – 1; the minimum number of directors – 1; local office requirement – no; annual reporting requirement – no. Required documents for registration: Certified copy of a valid passport (or national identity card); certified address confirmation - utility bill (not older than 1 month) in English or Arabic (or official translation); A letter of recommendation from the bank (not older than 1 month). Advantages of doing business in the UAE: The main advantages include: Absence of income tax and corporate tax; Permitted 100% foreign capital, no need for a local sponsor (except for local companies); There is no requirement for mandatory audit (except for some free-zones and local companies); A high degree of data protection on the ownership of companies; The ability to work in the country (with the exception of offshore companies); The ability to open accounts in local banks without legalizing corporate company documents; The right to obtain a Dubai residence visa or residence visa in other Emirate for shareholders and employees of the company; The possibility of obtaining certificates of tax residency under agreements on the avoidance of double taxation (for free zones and local companies). The ability to obtain a residence visa is one of the main advantages of opening a company in the UAE. It can be obtained by a non-resident individual on the basis of the acquisition of real estate, as well as the registration of a company in the free zone of the UAE. Such a visa is issued for a period of up to 3 years with the possibility of extension and gives the right of permanent residence and work in the country. In addition, UAE banks do not transfer information within the framework of the Common Reporting Standard exchange, if the bank has accounts of companies registered in free zones or personal accounts of shareholders and managers who have resident visas - as they are recognized tax residents of the UAE in the framework of the current legislation of the country. Read Also: Investments 101: How To Choose A Smart Stock Choosing A Quality Prep Center For Your FBA Business

CRMDialer: A Zoho Alternative

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This is why CRM Dialer built their help-desk directly into their platform allowing you to see and track customer tickets as they are generated. This allows you to monitor the help ticket progress and ensuring that they’re resolved quickly and efficiently, ending with happy, repeat customers. CRM Dialer has help-desk capabilities as a priority in their platform, so your business can make customer service your priority. Zoho offers Zoho Desk which is a help-desk application that integrates with Zoho CRM. This application utilizes the use of tickets and a knowledge base in order to better serve customers while resolving help desk issues. 2. Real-Time Visitor Tracking : CRM Dialer allows you to see in real-time what customers are looking at on your site, and what they're clicking on. This allows your contact with them to be timely, and impactful to aid in closing the deal. It's included in the platform, no need to log in to an additional database or website to see the visitor's information history. It's accessible on the platform and happening at that moment. Zoho offers access to data within their dynamic reports & dashboards. Zoho utilizes an Opportunity Tracking tool that allows you to see the customer in the sales cycle, what the deal’s size is, and if there has been any contact history. 3. Team Chat : CRM Dialer has made it easier for the team to collaborate, chat, and communicate effectively. The team chat feature has been built-in so that information can be shared quickly and team collaboration can take place. This built-in feature allows for groups to be made for specific topics or projects, to allow the communication to flow easily in several species or designated teams/groups. To chat with the team in Zoho, you will need to integrate Zoho Projects into your platform, allowing team collaboration on each project. 4. Email Validation : Email validation is crucial in customer bounce rate. Having an authentic way to reach out to these customers is a worthwhile and profitable feature for a platform to offer. This is why CRM Dialer built an email validation feature directly into the platform. They offer three ways to perform an email validation: the Lead Email field, the Lead Importer, which allows you to do bulk email validation and validating within Quick Email pop-ups. This feature is refreshing considering most other CRM solutions require a third-party app to be integrated into. 5. Pricing : CRM Dialer offers two pricing levels. The first is free. Yes, Free. Their first level of pricing offers Forever Free For two activated users. This is perfect for the salesperson who wants to test drive the all-in-one CRM platform and upgrade as his or her business needs to grow. This level does remain free for the two activated users until they decide to move up. 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These features had been stand-alone integrations up until this point. CRM Dialer offers an excellent, improved solution for the small to midsize business. With this in mind, CRM Dialer is a powerful tool for managing both current and potential customers in a business. Read Also : How To Use IT To Save Your Business Money Information Technology And Business Success: The Things That Connect Them How Does Modern Technology Propel The Success Of Your Business?

Why Should Retailers Use Pricing Tools For Their Businesses

What is a Pricing Tool?

Advantages of using Pricing Tools: