If you are running an online store then you need to be aware of the competitor’s pricing strategy. In case your product price is too high, then chances are likely you will miss moderate customers (middle-class buyers) or if you have priced your product too low, then online buyers might not go for it as your product may appear of an inferior quality. In both scenarios, you will loose your customers and this will decrease your store value. To avoid these circumstances you will have to monitor your competitor’s product price along with discounts they are offering, the way they are promoting their products and brands etc.
What is Price Monitoring?
To run a successful online store, you will need to devise a suitable pricing strategy to boost your sales. Price-monitoring allows you to collect data via website scraping and data mining from other similar website stores and you can use that information to devise a useful tactic that might aid your online store to be ahead of others in the long run.
Price monitoring uses different techniques like data mining, data scraping, and web scraping to give you insights on the present industrial environment, market demand and likely future trends. This will allow you to use collected data for your own store benefit as you will be aware of competitor’s pricing tactic.
Why will you need a Price Monitoring software?
You don’t need to manually search every website that is operating under the same market segment because that is just not possible. There are many of software solutions that can help you with your data collection tasks. Price-monitoring software can help you track your competitors selling and marketing strategy in a much more simplified and understandable manner.
Price Monitoring helps you to create and implement unique strategies
You will need a unique marketing plan or a Unique Selling Proposition (USP) that can counter your competitor’s plan. Your strategy should make your online store look stand out of the crowd. It should be something that other online stores are not offering to their customers. To help you capture the majority of the market, price monitoring can help you create a promotion plan that provides customers with some extra benefits without affecting your per product margins such as an extended return and refund policy, free shipping anywhere in the country, free trials, amazing discounts on high priced products etc.
Conclusion
Pricing Monitoring helps you boost your sales and store value. It helps you to predict your competitor’s marketing strategy and track their next move. It also gives valuable insights about how you can set your marketing strategy that will give you more leverage over your competitors.
