I blogged about the pitch I wrote in Auctioning Off Your Purchasing post. Today I want to share the pitch that wrote my study partner, Pavel, based on an idea we developed. Later on, we tried actually to implement that idea, but that’s another story.
PriceMatcher is a web based service that allows online shops to automatically set and update prices of their products, according to their position in price comparison engines (like Zap, etc.), product cost, minimum revenue margins, etc.
The service will allow online retailers to improve sales by improving their position in the price engines by automatically updating the product price at required minimum only.
This solution will allow easy integration with number of popular shopping carts and online shops systems – allowing easy access and update of products information.
In addition, PriceMatcher will provide analytics and assessment of shop’s performance in the price comparison engines – sudden movements between position ranks; price sensitivity (how decrease in price influences total sales, etc…); main competitors’ positions, and more.
Online shops registered in price comparison engines.
Estimation performed for Israeli market only. Zap price engine contains more then 600 shops (2008), with total yearly sales of 420 million shekel.
Shops will be able to increase their sales by selecting the correct price for each product using this automated solution. The activities PriceMatcher will be able to perform automatically are now being done by hand (shop employees check their product positions at price engines, and decrease their prices, manually, in order to be at the top of the list).
Subscription based. The subscription monthly price will be calculated on the basis of number of products in the shop and number of price comparison websites the shop is working with. Typical subscription price: $99/month.
a. Copying of the service. Solution – first to market (reputation, experience, etc…).
b. Implementation by the price engines. Solution: PriceMatcher will provide cross price engine analysis, hence any single price comparison website will not be able to provide optimal price decision, based on number of price engines.