One of the main challenges faced by those manufacturers who sell their products through multiple distribution channels is to have real-time data regarding whether or not retailers are following price recommendations as indicated for their brand(s). Antonio Tomás, CEO of Minderest, explains how this can be accomplished with the help of MSRP monitoring software.
Today, the large quantity of stores (online and physical) where you can buy products and services offers an almost infinite variety of locations in which to place you brand. If, at one time, large department stores were a clear competitive edge when compared to small family-run shops, today the great challenge places this focus firmly on the diversity of different platforms on which a product can be found.
This reality supposes a new paradigm of action for manufacturers and brands. How to manage the price of your products in each and every one of these sales channels?
MSRP intelligence tools allows manufacturers to know, at all times, how retailers conduct themselves with respect to their products. This is a frequent operation in large manufacturers, which until now had their sales and quality-control staff available to carry out the necessary management tasks, but in the new digital world, things become somewhat more complicated.
The importance of knowing if the recommended prices of a brand are followed lies both in respecting the price strategy drawn up by the manufacturer, and also in not damaging the brand image specifically created by them for the consumer.
This is especially relevant if, in addition, the manufacturer does not directly sell to the consumer. In which case, they depend exclusively on the activity of the sales channels in which they are present,and are risking, in effect, leaving the management of its benefits in their hands. Could anyone think that a giant like Coca-Cola did not know exactly at what price their drinks are sold?
These days, MSRP monitoring should be a fundamental pillar in the pricing strategy of any manufacturer, why? Because the consumer, the main generator of business, has at their fingertips infinite options to reach their products - and as many other options to choose their competitors products.
Consequences of not monitoring MSRP
? Excessively low prices can, over time, cause gradual reduction on a brand´s own prices.
? Prices set by retailers can cause product image problems within consumer groups.
? Damages the sales force as bad pricing invariably affects sales volumes.
? The relationship between the manufacturer and the retailer becomes damaged, and, in the face of a sales downturn due to bad pricing, may blame the product for its scarce success in the market.
? The benefits of the brand could be diminished by any of the above factors. What benefits does a MSRP monitoring tool offer?
MSRP monitoring software allow mainly two things:
? Visibility regarding whether or not the retailers that sell branded products follow the recommended sale prices.
? If the sales channel has available stock on all branded products or not.
With a tool like Minderest, the manufacturer has access to the price that each distributor is publicising for their products and also any medium and long-term variations from that pricing. In this way, you can create a history that reflects the relationship between the seller and the manufacturer´s products and also detect if certain milestones have been met coinciding with dates indicated in the product calendar.
As for the stock, thanks to this type of software, the manufacturer can control what the actual sales of its products are, as well as check whether the stock management the retailer undertakes is correct. The manufacturer can then anticipate certain decisions and request restocking if it deems to be at a disadvantage in relation to its competitors’ products.
What happens with traditional sales in brick and mortar retailers?
The rise of online channels cannot divert attention away from the hegemony that physical stores still have in terms of selling. In this sense, the MSRP InStore tool from Minderest has revolutionised the tracking of recommended prices in brick and mortar retailers.
Through a simple App the manufacturer can manage the prices captured from each and every one of the stores in which their products are located, as well as access the stock they have on each of their lines.
Obviously, all the data collected by this system is completely transportable to the main monitoring software, making it possible to incorporate these variables into the global reporting.
It was never so easy, convenient or practical to manage manufacturers prices that, until now, were blind spots in the sale of their products to the end customer.