Competitor price monitoring is an important weapon in competition. With its help you can set optimal prices for services and goods — favorable enough for your customers, but at the same time such that the margin is not too low. By the way, I recommend uxprice for this purpose.
Price monitoring is especially important for online stores, trading companies, firms working with services. Market conditions are constantly changing, and it is important to quickly adjust to them. Analysis of competitors’ prices helps with this. You find yourself one step ahead and can dictate your conditions on the market, manage sales efficiently, getting maximum profit.
What tasks does price monitoring solve?
You need to know your competitors’ price offers and understand the criteria by which customers will choose your product or service. For example, the price doesn’t have to be the lowest in the market. If the offer «comes with» free or very fast delivery, extended warranty or additional service, the customer may overpay, provided that the total benefits are large enough. To keep the company’s offer competitive, it is important to constantly monitor competitors and compare them, just like customers or clients do.
Manage sales volume
In the structure of the assortment there are always marketable, seasonal goods, items that are in low demand, specific offers, etc. Maintaining an optimal balance between the product inventories of these categories, it is possible to maintain the maximum demand, the largest aggregate sales volume. It is possible to manage the sales of goods or services of separate categories by means of prices: reducing them in order to avoid overstocking, increasing them in the periods of peak demand or shortage of the same goods from competitors. Price monitoring makes sales management flexible and responsive to market changes.
Reduce your own costs.
The results of price monitoring can be used to optimize cooperation with contractors by reducing suppliers’ prices, giving additional discounts and changing terms of delivery. It helps to decrease costs and get long-term benefits.
Quickly react to market changes
Monitoring quickly provides up-to-date information about them. Price change is one of the key «markers» of change in demand and inventory levels. For some goods and services, price monitoring is necessary to track the state of the market and work in accordance with it.