4 Reasons Why You Need Competitor Price Monitoring

Your company doesn’t exist in a vacuum. Numerous internal and external factors can shape your business, whether it be consumers, suppliers, or competitors. In today’s way of doing business, monitoring your competitors become one of the first and foremost steps. Why is that so? Well, retailers are turning mainly (if not entirely) over to eCommerce, which means little to no startup costs but serious online competition. Monitoring your competitors is essential for your whole business strategy, and especially for pricing strategy.

Therefore, we’re going to discuss the reasons why the competitor price monitoring is every business necessity.

Competitor Price Monitoring Helps You Stay Up-to-Date With Market Changes

If customers are checking prices daily, then there is no reason for you to not do the same, right? By doing simple online research, customers can easily find a substitute for a product there’re looking for. That doesn’t mean that you should offer the lowest price, but instead to be aware of the importance of keeping an eye on your prices. Of course, customers don’t base their purchasing decision solely on the price, but price monitoring could be a helpful benchmarking tool.

Amazon changes product prices 2.5 million times a day, meaning that an average product’s cost will change about every 10 minutes.

Therefore, the ability of competitor price monitoring offers you a significant competitive advantage. It will allow you to quickly adapt to price changes, and find the right answer for every market change. You aim to always be in the game, and not to be left behind, right?

Increase in Sales

Competitor price monitoring will give you much-needed information about the type of customers who are interested in your product/service. In general, there are three types of spenders - high spenders, low spenders, and average spenders. Every type requires a different approach in terms of pricing.

increase in sales
increase in sales

For example, if you’re selling a luxury product, you won’t be selling it buy a lower price, or offering some deals and bargains. Those customers simply aren’t interested in that, since the affordability doesn’t play an important role in their buying decisions.

However, if you’re not sure if you are using the right pricing strategy, competitor price monitoring will offer you those insights. You’ll be able to compare yourself with the competition and check if they may be marketing their products better.

Competitor Price Monitoring Helps With Building a Brand

According to the report of KPMG International, 30% of customers consider the brand and its website before making a purchase.

Believe it or not, but the competitor price monitoring can help you build your brand!

You must be wondering how?

competitor price monitoring
competitor price monitoring

The brand and its image need to be created according to your needs. Your needs are based on your customers and their shopping behavior. For instance, you can decide to be affordable, or maybe to create an image of a luxury brand that will have high prices.

Competitor price monitoring will provide you a depth insight into the market situation. You’ll see what pricing strategies are used by the competitors who’re offering similar products as you do. How often they make price changes? How often they ran out of stock? An answer to all those questions will be given by competitor price monitoring.

Save Time and Money With a Competitor Price Monitoring Tool

As you can see, there is no way you can manually follow up with such frequent changes that for example, Amazon has. When you have a lot of competitors, it’s very hard to perform competitor price monitoring on your own.

Nowadays, many tools on the market are specialized to help you with this task. One of those automated solutions that can ensure that you have timely and accurate data at your disposal is Price2Spy. With the help of Price2Spy, you can be sure to always have correct and precise data, that will be delivered to you in the form of a report that is most suitable to your needs.

By using these reports you can follow price trends, competitor margins, stock changes, and much more. What comes especially handy is the option of collecting historical data. It can be helpful in forecasting, seasonal planning, and strategic planning in general.

In Conclusion

Competitor price monitoring has proven itself to be an essential tool in the vast majority of eCommerce businesses. Regardless if you are a brand, an online retailer, or a distributor, keeping an eye on your competition is a must.

Don’t waste your time and money in wain - give an automated solution for a competitor price monitoring a try, and you’ll see all the benefits that it brings.

What are you thought about competitor price monitoring? Which tools are you using? Share it with us in the comment section.