Understanding Competitor Pricing - a key to success
The importance of tracking competitor pricing
Understanding your Competitor Pricing is one of the key elements of business success. By responding quickly to competitor changes, you can maximise your impact on the market.
Slight changes can mean big returns.
Business is a competition. If you’re not winning customers or market share, then someone else is. Understanding your competitor is a major factor in your success.
Understanding their pricing should be a key part of the intelligence gathering process.
Automate your price collection process
Awareness of your competitor’s price movements is essential in today’s fast-moving eCommerce environment. Small upward price changes can increase profitability quickly. However, finding those pricing gaps left by your competitors can really only be effective through automating the price collection process.
Pricing has a dramatic effect on profits
Studies have shown the impact of pricing has a much bigger effect than other elements of the marketing mix. An increase in average selling prices of 5% increases EBIT by an average of 22%. While other activities, such as revenue growth or cost reduction, have a much smaller impact.
Dive deeper into your Competitors price strategy
By automating the collection of your competitor’s prices, additional data can be extracted.
Data showing historical trends and changes can show deeper aspects of your competitor’s strategy.
By understanding the data extracted by price intelligence tools, you can quickly establish if individual products or even category ranges are being promoted, substituted, or removed.
Pricing knowledge is power.
In today’s world of business, knowledge is power. Not only are you competing with business rivals, you have to address the knowledge of the consumer. Consumers are equally adept at comparing prices. Even the smallest difference in price can make a buying decision change from one retailer to another.
Put ‘Price’ at the heart of your business strategy
Using competitor pricing and market analysis can be the foundations of your strategy. Pricing data and analytics can show unexplored markets or even product niches that you can exploit.
Bring better price intelligence and analytics into play.
It’s not a matter of if you should understand your competitor’s prices more effectively. For survival, businesses are implementing price intelligence systems.