Pricing for the consumer electronics industry

Short product life cycles

The lifecycle of consumer electronics products is often short, which makes it important to work with the combination of stock, product life cycle (PLC) and sales especially as the previous year's products are often significantly discounted. 

Our approach: Based on PLC, Omnia suggests having a different pricing strategy per phase. While newly launched products should be based on recommended retail price (RRP), end-of-life (EOL) products with high stock levels can be priced on the lowest competitor -X%. These strategies are making sure that older products are also being sold allowing our customers to be free from stock that can’t be sold, eventually saving on costs and making room for newer products. Furthermore, any internal data can be used to determine additional PLCs that can be utilised for smarter pricing decisions. Lastly, Omnia even provides the ability to dynamically calculate the PLC stage based on, for example, the launch data of a product, which automates another step in your dynamic pricing strategy.

Margin requirements on category level

Minimum margins can differ on many levels, for example, on a category level due to different cost structures. Additionally, on a brand level due to different distribution contracts, for example, some retailers might have the ability to purchase at better prices as they have strategic partnership deals with a supplier.

Our approach: Omnia’s Pricing Strategy Tree™ easily lets you define minimum margins in a modular way, where you define it once for every strategy that follows behind. This transparency will give every user in your business the ability to easily understand and apply the margin requirements, may it be on a category or on a brand level.

Prices change in high frequency

Product prices in customer electronics change in higher frequencies than products in other verticals. Any pricing strategy in CE needs to be sensitive to that fact.

Our approach: With Omnia, it is possible to recalculate prices at any time of the day, as well as multiple times per day in order to stay on top of the market.  You may also choose to implement different frequencies on a weekend vs weekday or a season vs non-season level. Moreso, Omnia users in your business can manage frequencies per product group so that kitchen appliances have up-to-date prices in the morning, while smart home products get price updates in the evening.

Local markets

Some product categories like telephony can experience particular local idiosyncrasies, like regionally locked phones that have individual GTINs in different countries.

Our approach: Omnia provides a multi-shop approach to dynamic pricing, thus catering for individual pricing needs on a country, market and even shop level.