The Pros and Cons of Family vs. Complete Full Book Competitive Pricing
Different collection types yield different insights as I mentioned in last week’s post. From directed key item lists to complete full book price checks. Each provides a different insight for the data analyst. In looking at full book price checks there are two collection philosophies adopted across the industry: complete and family style. As full books are at the core of many pricing strategies I wanted to break down the benefits of each style.
Family Pricing Full Book Collections
With family pricing, a client only requests one item of that brand family or product line. For example, instead of collecting all the flavors and variants of a brand of pudding, we would only collect and deliver one pudding SKU and price. This can reduce the SKU count by nearly a third but also limits the utility of the data.
Pros of Family Pricing Full Book Collections:
• Cost Savings: Because the rep is only scanning one item in a family product line, they save time and money.
• Minimal Data Analysis: Avoids having the analyst spending time analyzing redundant items & prices.
Cons of Family Pricing Full Book Collections:
• Limited Visibility into Category Assortment: As product lines grow and shrink based on popularity and demographics, data analyst won’t have visibility into these market trends.
• One-Off Reporting: Not every price is the same all the time. A new flavor—caramel/sea salt—or a special seasonal flavor like pumpkin or eggnog might be priced differently than vanilla. Pricing analysts will need to create exceptions and rules that might skew reports week to week.
Complete Full Book Pricing Collections
With a complete full book pricing, the rep scans everything in the category to get a clear picture of the competitor’s pricing strategy.
Pros of Complete Full Book Pricing Collections:
• Complete Category Assortment: The pricing team gets the complete picture of product pricing across all categories.
• Product Trends: Analysts can recognize high-level trends across categories that give access to deeper insights around pricing opportunities.
• Multi-Layer Validation: The validation software catches errors as it can compare last item collection ensuring price accuracy.
Cons of Complete Full Book Pricing Collections:
• Cost: Can be more expensive up front.
• Big Data Files: Some price optimization solutions might not be able to process all the data that comes from a full book collection.
So What’s The Ideal Full Book Collection Type?
Our recommendation is, if accurate data is essential and you want deeper insights for your analyst, use complete full book collections.
If data overload is a worry but you still want highly accurate data you can work with your data collection company and have them collect full book checks but deliver that data in a controlled format that won’t clog your price optimization software.
Today, data is everything. Too much data can be filtered, but inadequate data leads to uninformed decisions, and nobody wants to pay the price for that.