Price Monitoring Software for the US market
- 16 December 2022
Price monitoring tools are invaluable to any pricing strategy. By tracking pricing data, businesses can identify pricing trends, and adjust their pricing accordingly to maximize revenue. Market numbers show that using price monitoring tools can result in an average increase of 11% in pricing optimization and a reduction of up to 22% in market pricing. Such comprehensive pricing analytics allow businesses to make informed decisions on pricing adjustments, staying on top of the competition while increasing sales opportunities.
Currently, having a competitor pricing tool on board is a no-brainer when it comes to online selling and price tracking. Its impact alone in pricing optimization strategies has the potential to increase revenue significantly. Though these types of tools have the potential to be of great advantage for e-commerce businesses, they can also bring several disadvantages when misused due to price discrepancies and issues with customer service quality. In 2023, if price optimization techniques are used wisely, with an efficient pricing strategy, it could be a great asset in making online platforms run more productively and improve profits.
E-commerce and the US market are a perfect fit. Revenue from retail e-commerce in the United States was estimated at roughly 905 billion U.S. dollars in 2022. Many small and medium-sized US-based businesses utilize pricing strategies to maximize profit, often pricing products differently for different categories or customer groups. Beyond pricing, business owners also invest in price tracking and price monitoring tools to get data insights into their pricing performance over time and the various customer segments they appeal to. This helps them make informed decisions on how to optimize pricing strategy which is tailored for each distinct customer segment, leading to increased profitability and sales.
Benefits of using price monitoring tools
Using competitive price monitoring tools and price management software from an online retailer’s perspective can be extremely beneficial in terms of competitor price intelligence, taking advantage of promotional opportunities, and making real-time price adjustments. This type of price intelligence solution can help retailers track the prices set by their competitors, giving them insight into the price wars being waged online. With this information at hand, businesses are better equipped to make informed decisions about adjusting their prices to remain competitive. Retailers may also benefit from having access to promotions available from suppliers and vendors to showcase their products at more attractive price points.
Lastly, the price management tool is often able to take into account market conditions and respond in real-time with automated price adjustments; this helps keep the retailer’s pricing up-to-date no matter the changes in demand, offering customers a fair value for products all year round. All in all, price monitoring tools offer a variety of advantages that can help an online retailer be successful in today’s digital landscape.
Which industries could benefit the most from price tracking and why?
Using a price monitoring tool is becoming increasingly popular among industries that rely on price management, such as manufacturers and retailers. Accurate price tracking allows companies to monitor pricing information across multiple databases, set price alerts, track competitor prices, and compare pricing models.
Industries that have benefited the most from price monitoring software are those selling items where price has become an important factor of success. Examples include the retail industry, food and beverage, manufacturing, and hospitality. According to Business Insider, retail e-commerce grew 39% in 2020 due mostly to price-conscious consumers seeking the best deals online. Companies paving the way include Amazon, Walmart and Target, who have used automated pricing for years to stay head and shoulders above the competition.
The Food & Beverage industry has also seen significant gains since implementing price monitoring tools. A couple of examples of successful companies in this category are Coca-Cola and Nestle, who have seen their revenue increase by 223% and 20% respectively due to carefully managing prices with price monitoring tools. Manufacturing companies are also heavily invested in price intelligence solutions like price management software as it helps them keep a finger on the pulse of their sales performance, margin management, competitor’s pricing movements, stock levels etc., allowing for price changes within weeks instead of months or even further down the line.
Walmart has claimed that its use of price monitoring has saved them millions of dollars by avoiding overpricing at scale. Through this price intelligence, Walmart was able to identify their competitor’s prices for the same product on a granular level. Other industries that have seen success with price monitoring tools include those targeting consumer goods and beauty products; Unilever has publicly stated that price monitoring allowed them to identify pricing discrepancies in more than 50 markets around the globe. Ultimately, investing in price management solutions helps companies both increase their profit margins and maintain competitiveness by keeping track of industry trends and competitors’ offerings.
The best tool for the task – Dealavo
Dealavo is a price monitoring software that provides price intelligence and to those in the retail world. Created to help companies maintain an accurate price position on their product price points, Dealavo allows users to monitor price fluctuations in the market so they can quickly make appropriate changes. Benefits of Dealavo include faster reaction time when price differences arise, improved decision-making based on price data, enhanced competitive pricing insights and up-to-date market intelligence that gives better visibility into the competitive landscape.
Dealavo provides features such as dynamic pricing, an open API, promotions tracking and banner monitoring. It’s also worth noting that the tool tracks prices on every given platform and is easily integrable with external systems such as WooCommerce, Shopify, Idealo and so on. It’s fair to say that Dealavo’s price monitoring tool can gather and analyse all the data you want from all the platforms you could potentially use.
Not only will companies save money by having more accurate prices, but also gain a competitive advantage. Compared with other price intelligence tools on the market, Dealavo has more powerful features such as real-time price alerts and automated modeling capabilities which give an individualized approach to pricing analysis. The combination of these features makes it worth considering for anyone looking for a sophisticated price monitoring tool.
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How to implement price monitoring software quickly?
A price monitoring solution is essential for any e-commerce business looking to get ahead of its competition. Tools like that provide valuable price intelligence that makes it easier to increase your margins and improve pricing strategies. Implemented correctly, dynamic pricing can drastically reduce the time it takes to configure, monitor, and adjust prices in real time. To help you get started, here is a step-by-step guide to implementing price monitoring software at your e-commerce business:
First, research the price monitoring market to determine which solution best fits your needs. Once you select the price monitoring solution you want to implement, the next step is to set up price points and thresholds accordingly. After setting up price points and threshold settings, you can start collecting data on competitor prices and market trends. Finally, use this information to develop pricing strategies and make any necessary adjustments or changes quickly and easily using the price monitoring software.
Don’t worry, the Dealavo tool comes in as a full package, with a free trial, market strategy consultations and know-how about how to use it for the best results. There is also a support team that will always answer your questions and make your price monitoring journey nice and easy. Follow these steps and get ready for essential improvements in your e-commerce operation!
For American businesses, competitor price tracking software can provide substantial advantages over manual price tracking by enabling companies to keep an eye on competitive price changes, understand product positioning related to price, and modify pricing strategy accordingly. By taking advantage of price management software, companies can uncover opportunities for price optimization, dynamic pricing and tailor their approach to best fit the current market landscape. Not only will data from price monitoring software allow businesses to make well-informed decisions about pricing but it will also help them stay ahead of evolutions in the market by alerting them to changes in real-time.