Every retailer and business knows that consumers tend to look shop and look for the best prices they can find online. However, plenty of these businesses fail to respond to this behavior properly. One of the worst things you can do for your business is to make pricing decisions without the proper knowledge of what your competitors are pricing similar products.
If you want to sell your products at a discounted price or sell them at a premium, having a proper price monitoring strategy can significantly help you achieve your business goals. Let’s look at how you can utilize price monitoring to stay highly competitive in your market. Read on to learn more!
What is price monitoring?
Price monitoring, also known as retail monitoring or price intelligence, is the practice of analyzing your competitors’ prices to optimize your business’ pricing policy. A price monitoring strategy is most often carried out by a professional team of staff auditors within a short period. This allows your business to quickly respond and adapt to any changes in the market’s prices.
Your staff auditors will analyze all external and internal variables that can affect the prices and use this information to further optimize your pricing policy and strategy. Price monitoring is one of the most important processes when it comes to thriving in the e-commerce industry. It can give you information about your rivals’ operations; those that sell the same products as you and have the same customer base.
You can also gain a deeper insight into the market’s situation by monitoring indirect competitors’ prices. These are businesses that target a different or the same audience as you while offering a lower or higher price than your prices. Make sure that you only track relevant pricing information to your respective e-commerce to not waste resources.
Price monitoring process
Now that you know some of the basics of price monitoring, let’s look at the process of how it works. A great price monitoring strategy can act as your business’ GPS that tells you what your competitors are doing and how you can take advantage of the opportunities it can provide.
Below are the things your price monitoring strategy should achieve to help your retail business.
- Competitive advantage
Your price monitoring strategy should help you achieve a competitive advantage in your market. It should let you set objectives on how you can translate price monitoring into a positive business outcome such as higher revenue.
- High accuracy
A price monitoring strategy should only gather and deliver highly accurate, relevant, and valid data. This is very important in making the right business decisions based on the data.
- Important insights
A price monitoring strategy should provide important insights into the market whenever you need it.
- Meaningful action
Price monitoring is useless if you don’t use it to make some meaningful action on your business.
Let’s proceed and look at some practical methods you can do to make an effective price monitoring strategy.
Step 1: You need to set a clear market position
The very first essential component in a price monitoring strategy is a market position. A clear market position will let you easily make sense of the date you receive. You need to take the price data and use it to preserve your brand and its value proposition.
Step 2: You need to study your competitors
You need to identify and carefully study your competitors to be able to make a proper price monitoring strategy. Learn what they sell and how much they sell it for, you can do this by utilizing web scraping methods to gather large amounts of information.
Step 3: Test the pricing data you receive
Once you receive the relevant pricing data for your products, you’ll want to test out their accuracy.
Step 4: Identify the problems in your strategy and adjust
A proper price monitoring strategy isn’t rigid; you should be able to adjust it to accommodate for any problems arising.
Step 5: Make it a daily routine
Price monitoring shouldn’t only be a one-time thing; it should become an important routine in your daily business operations. This will ensure that you’ll stay competitive consistently.
Main benefits of price monitoring for businesses
There are plenty of benefits of proper price monitoring for any business, especially for e-commerce. Below are the main benefits you can expect.
Price monitoring will improve your pricing policies
Price monitoring has plenty of automated tools you can utilize to improve your pricing policies. It can help your team to obtain important market intelligence. With this data, you can make better and more informed decisions when it comes to pricing your products. If you are interested in automated tools for collecting pricing data, visit the Oxylabs website for more information.
Price monitoring will help increase your conversions
Having a proper price monitoring strategy will provide you a broad view of your market’s situation. By using price monitoring, you will recognize a trend in prices. You’ll be able to maximize your sales by offering discounts and promotions during the best time.
For most businesses to excel, they need to have access to accurate data about their operations. Having real-time pricing information can significantly help any business owner to form strategies and make business decisions that wouldn’t have been possible without price monitoring.