How to monitor the product's prices?
Probably a lot of people would like to implement products’ price monitoring in their companies but some people are not sure how the solution works. Let’s discover what are the benefits of using a competitor’s price or products analysis in a certain brand.
All of us know that e-commerce sales are a certain type of marketplace. It grew on a global scale. Being open 24/7 clients have unlimited access to the products that are sold online. Customers compare prices and buy where the price is the lowest. This situation is great for customers but what does it mean for brands?
On the one hand, producers also are happy. All in all, access to products is easy and as clients can buy 24/7 they buy a lot which resonates in sales growth. With the growth of e-commerce business, the prices dropped – in favor of buyers as more people can afford to shop online. That is another factor which directly caused growth in sales. But with so many e-commerce shops the rivalry and the pressure connected with price competition appeared. Sometimes it results in sellers offering products with a minor margin just to sell it. This is a bad situation for producers as it spoils the market. Both underpricing and supporting the grey import causes the seller annoyance. Also, sellers try to gain additional discounts from producers or force any other intervention which results in the price drop. The more such situations, the more the brand image and the more damages face the producer’s chain.
Price monitoring data is interesting for two groups of clients. The first group is producers or general distributors. They can monitor prices of products directly with cooperation with retailers or compare price levels with competitor’s products. Monitoring the competitor’s prices is very popular. The second group is the retailers. Those people are comparing their offer directly with the offer of their competition. Based on that retailers can shape their price policy.
What is more, information about prices is useful for companies that create market research.
So, what are the benefits of price monitoring or monitoring of prices? The retailers can optimize prices – to maximize the margin or to gain more clients. Thanks to analysis, our clients had a lot of situations in which they offered products significantly cheaper than competition or they simply could raise their products’ prices.
Checking the product’s prices is interesting for brands, their clients, and direct retailers. Of course, the most popular is the competitor price monitoring in online stores. What is more, online price monitoring is a huge chance for producers – to grow their revenue and become a market leader.