Price monitoring in the electronics industry – guide for e-shops
- 13 May 2020
Online sales of products from the consumer electronics industry are developing dynamically. Consumers are increasingly less concerned about buying equipment online, and virtual stores grow in number. All this means that staying competitive in the market without unnecessary loss of margin is not only very important, but also extremely difficult. How a price monitoring tool can help to achieve this?
Monitoring of prices and promotions in the consumer electronics industry
Knowledge of prices offered by competitors is especially important for e-commerce sellers in the electronics industry where online promotions are extremely frequent and aggressive. Monitoring of market prices allows you to observe which promotions of competitors have the greatest impact on your sales, and thus constantly optimize the offer and adapt your own strategy to it. Knowledge of what competitors promote also allows you to better manage your own promotional calendar – you can read more in our article on promotion monitoring.
In addition to reacting to price reductions, the aspect of margin protection or even an increase is also very important. All in all, we do not always want to sell cheaper – often compared to your competition, it turns out that you can sell products at a higher margin, while still being in the same position in the ranking relative to other online stores. Such a comprehensive approach will allow you to both react to promotions and be competitive, and on the other hand, to increase prices only in areas where you can profit.
Monitoring of shelves in stores selling electronics
Stores in the electronics industry often have a wide range of products divided into many categories, and manual monitoring in this industry is very difficult. Knowledge of the goods sold by competitors is crucial – comparing yourself to stores with similar sales models allows you to better manage the goods on your own shelves. It is important not only to monitor stores online, but also offline – checking how much the stores operating in a similar location differ from yours in terms of the product range allows you to more effectively optimize your own offer and attract the right groups of customers.
Safe dynamic pricing for stores selling electronics
Dynamic pricing, or price automation in online stores, is a modern way to maximize profits from online sales. It is important, however, to make it safe – a price decline below the profitability threshold carries the risk of significant losses. To prevent that, Dealavo offers the possibility of choosing the option of automatic price setting or merely presenting the price proposal in line with agreed limits, e.g. margin or price. Then you yourself make the final decision about changing the offer. In addition, the automation rules at Dealavo are created by AI, and their performance is constantly analysed and tested. With this, the platform offers you the most appropriate options that will bring you the best margin.
Better offers from electronics manufacturers
Knowledge of prices offered by competitors also allows you to negotiate better commercial terms with suppliers. If you establish cooperation with a new manufacturer, the store can check whether the new partner has offered them a good price. This is important not only when introducing new products to the store, but also when renegotiating existing contracts. At Dealavo you can set alerts informing e.g. about the appearance of a price below the purchase price on the market. You just upload the price at which you purchased the product, and the platform automatically highlights all online offers below this amount. In this way, you can verify whether your suppliers offer favourable commercial conditions, and then renegotiate them on this basis.
If you consider introducing dynamic pricing and automatic price monitoring in your store, please contact us. We will present you with the specific functions of our platform and advise you on what tools to choose to monitor the categories of your choice as effectively as possible.