What is it?
Intra day pricing is when retailers will change their pole sign price to take advantage of a specific period on time during the day. Traditionally this is a time period where they can drive an increase to VOLUME, PROFIT, MARGIN, or sometimes ALL THREE.
What are we trying to achieve?
We will be looking to achieve VOLUME, PROFIT, MARGIN gains by using the Edge data to inform where those opportunities could potentially come from, and what the impact was to the business.
How do we Implement?
A retailer must first decide what opportunity they will be targeting. Traditionally intra day pricing is incorporated to take into account the uptick of road users around RUSH HOUR, using the ‘organic’ uptick in traffic to drive greater VOLUME and PROFIT gains.
First of all we would leverage the PERFORMANCE REPORTING capability in the app in order to identify when ‘rush hour’ takes place for your site. We can determine this by identifying when volume increases for a 2-3 hour period at the beginning and end of the traditional ‘working day’ (between 8am-6pm).
The retailer must then identify what the goal is.
FOR EXAMPLE: If we know we have additional road users, a small uptick in price would drive profit margins higher, but this risks impacting volume if the price is too high.
Or a small reduction in price may entice even more customers to your site during high traffic times, perhaps taking advantage of the store offerings e.g a morning commute coffee, therefore increasing overall volume, and in store profitability, at the expense of a little margin.
Only you as a retailer will know what is best for your store, however it is extremely easy to identify the impact of your decisions using the PERFORMANCE REPORTING widget in the Edge App.
The ability to compare multiple time periods across your key metrics can tell you if and by how much your volume, profit, and margin have moved versus your average.
Did we achieve 10% uplift in volume during rush hour this week versus last week?
Did our increase in price negatively affect our volume during our peak times?
Does the market have an appetite for special offers?
All these questions can be answered using the Edge app.
How long does it take?
The Intra Day pricing strategy is a strategy that requires monitoring of specific time periods and comparing their performance over time.
Impact on price changes can be instantaneous, especially when dealing with high traffic time periods, but again, the true value comes from monitoring the performance over time, identifying key areas to take advantage of, and using your already successful periods as a force multiplier for your bottom line.
