Having an item at the best price on the market, the advantages and challenges!

In the competitive world of commerce, offering an item at the best  price on the market can be a strategic advantage but comes with challenges. In this writing, we will look at relevant statistics, impact on market share, customer retention and expansion opportunities.

Here are some key figures that highlight the impact of competitive pricing on business results:

According to a recent study, 63% of consumers in North America said that the price was their main factor in purchasing decisions. Therefore, Offering an item at the best price on the market can have a significant impact on customer conversion.

A survey also revealed that 82% of consumers research online to compare prices before purchasing a product. By offering the best price and having an online presence, you increase your chances of attracting these consumers and closing sales.

North American consumers are particularly sensitive to price in product categories that they purchase several times per year. By offering an item at the lowest price, the chances of winning a good share of the market increase significantly.

Market share

By offering a competitive rate, you can attract customers who were previously loyal to your competitors. They may be enticed to try your item because of it's attractive price, allowing you to gain new customers and take market share from your competitors. A study found that competitive pricing can lead to an increase in market share of 5-10%.

Customer loyalty :

When customers realize they can get the lowest price from you, they are more likely to come back for future purchases. In addition, a study showed that 78% of consumers are willing to stay loyal to a brand that offers them competitive prices and that they would be less likely to do new research for the same product.

Greater visibility:

By regularly sharing your low-cost article, you can also gain visibility and notoriety on the market. This can help you attract the attention of media, influencers and potential partners, opening up new opportunities for expansion.

Prepare an answer of your competitors:

When you have an advantage over your competitors and they discover the impacts, it is normal that they will try to respond to your strategies. It is therefore necessary to keep some room for maneuver in the face of low starting prices. Therefore, you will be able to adjust your strategies several times to the actions of your competition.

Adjust inventory supply:

With such an offer available, it is difficult to predict the traffic to your store and at which rate your growth will occur. Therefore, we must be on the lookout for demands and plan for a good distribution of these investments in the sectors most in demand.

In conclusion, offering a product at the best market price has many benefits, including impact on customer conversion, market share, customer retention and expansion opportunities. On the other hand, you must stay on the lookout for the response of your competitors. You must also maintain some margin for maneuver on your flagship product and calculate the necessary replenishments for this product for each new production.

Using the statistics listed above, we can see that consumers are price sensitive and actively search to find the best deals on the market. So, despite the few challenges to be expected, it will be very good for the growth of your store to have a lower price than the competition!