In order to remain a competitive organization and strengthen its position in the market, it is necessary to track the prices of competitors and monitor their prices in a timely manner. For example, Competitor Price Monitoring can be carried out in the field of e-commerce. We will find out what features it has further.
Features of competitor price monitoring
As you know, the market never stands still. Therefore, for the successful functioning of the company, it is necessary to monitor its changes on an ongoing basis. If you can offer the best price to the buyer today, it does not mean that it will be maintained for a long period. Competitors can launch a promotion, and all customers will simply go to him.
If it does not monitor competitors' prices, it can lose not only profits, but also regular customers. Therefore, it is extremely important to track prices and do this on an ongoing basis.
Here are the main features of competitor price monitoring:
- Maintaining prices at an attractive level for the buyer. Many buyers compare prices from different sellers and choose those offers that are beneficial to them. Therefore, they will always choose the most reasonable price option.
- Prompt response to competitors' discounts. It is possible to track competitors' prices automatically. And this will allow you to be aware of any changes and always be on the alert.
- Profit optimization. If you always control prices, you can find a middle ground. That is, it is possible to sell goods profitably and at the same time not lose customers.
- Control of the minimum advertised price. You should not violate the IDA policy, as this can lead to a destructive pricing policy.
As we can see, observing all of the above criteria, you can adhere to a favorable pricing policy. At the same time, we must remain a competitive company and not lose customers, but only attract them.
How to set favorable prices?
When setting prices, you cannot rely on intuition alone. It is important to evaluate real data. And for this, competitors' prices should be monitored. It will allow you to get a real picture of what prices your competitors are offering, and what prices you should set.
You will be able to see the market in real time and make quick decisions. At the same time, you will be able to monitor price dynamics and respond to its changes. This is one of the important steps towards effective pricing.
