How to use data from price monitoring? Guide for brands.
- 29 January 2020
It could seem that the European laws prohibiting manufacturers from imposing their own prices could make monitoring them insignificant. On the contrary – the level of prices on the market, including the prices of your own products and products of your competition, is a critical factor vital to the strategic decisions of both the sales management and brand or revenue managers. What can you gain through regular online price monitoring?
Increase your profit
Price monitoring will allow you to more accurately adjust your prices to the demands and mechanisms of the market. Perhaps the results of monitoring will show that, in order to maximise your profit, you should sell some of your products for less or more because a price adjustment in the right direction could win you the favour of the consumer.
Boost your sales efficiency
Information about market prices is also critical to the selling process. You can use it to estimate the margin with which your wholesaler or retailer will resell your products and then fine-tune your offer accordingly. You will also earn extra points during negotiations if you can provide your clients with reports from the price monitoring platform paired with sales and market data. Such reports can be easily created using the Dealavo tool.
Improve your e-commerce strategy
It is important to know your prices as well as the prices of your competition in various sales channels to check how your product is positioned on the market and how it will be perceived by the consumers. This way, you will be able to better adapt your sales, communication and brand strategy to your goals and expectations.
The Dealavo tool is used to monitor prices in most countries worldwide. This way, you know when someone is reselling your products outside of your partners’ network, even abroad. This is something that is difficult to detect using other methods, and it is very harmful because such sales do not contribute to your domestic market share, and they diminish your profits. That is why it is beneficial to monitor prices not only in Poland but also in other European countries and worldwide.
Plan your special offers better
Regular price monitoring should be combined with an analysis of the promotional schedules of other brands to identify specific trends in their strategy. With this knowledge, you will be able to plan your special offers better and stay ahead of your competition. You will also be more effective at developing the product categories in your portfolio because you will see how the market reacts to price changes and which categories still have some space for new products.
If you have not used a price monitoring tool before, now is the best time to change this! It will enable you to make much better decisions and grow your business.
Would you like to learn more about the significance of price monitoring?
Read our article on suggested prices and how to monitor them.