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And price monitoring tools help in doing that in an efficient manner. Price monitoring tools have become increasingly popular for businesses especially those involved in e-commerce.
The price monitoring tools make use of data science, machine learning, and data analysis for searching the websites of e-commerce platforms and companies. These tools retrieve the pricing information of the products and services of competitors. The data collected can be used for developing pricing strategies, optimizing the existing marketing strategies, and tracking the stock availability along with understanding the competitor pricing policies.
In today’s blog, we will explore the various reasons to go for a pricing tool. Don’t worry we will handhold you through our detailed article to understand the concepts, significance and why they are important in the easiest way possible.
So, let’s begin.
Having a significant knowledge of the price monitoring tool is helpful as it can help the business and marketing professionals in ways they could have never imagined. It can also prove to be helpful to the sales managers as they can identify the right tool and invest in it for their operations. PriceIntelGuru is predominantly ahead of its peers in this matter of concern.
What are Price Monitoring Tools?
Now, let us start with the very easy concept of price monitoring. To begin with, the price monitoring tool is software that helps a business make decisions about increasing or decreasing their prices for improving the market share. Businesses can use the price monitoring tool for tracking the price strategies of a specific competitor or a brand for gaining insight into market trends. The price monitoring software conducts online searches for identifying the competitor’s price changes and offers their users real-time notifications.
Pricing tools enable businesses to forecast sales performance along with managing their inventory of similar products. Businesses can perform in-depth analysis to view historical sales performance. These tools offer automated reports for influencing the decisions pertaining to pricing strategy. Some tools can also offer insight into the competitor’s performance via product popularity indices and customer satisfaction metrics.
Important Features of a Price Monitoring Tool
Price monitoring systems are technology solutions that a company can integrate with the existing Customer Relation Management or e-commerce systems. The main objective of the price monitoring tool is to automatically monitor the prices of several competitors. This will help in creating a suitable pricing strategy and enhance sales conversion. Though some tools are industry-specific, others are versatile and support diverse industries.
The price monitoring tool can help with re-pricing, price optimization, and dynamic pricing. The common features of the price monitoring software are as follows:
- Data extraction
- Image extraction
- Pricing extraction
- Web data extraction
- Phone number and email address extraction
- Text analysis and mining
- Data import and export
- Data and activity dashboard
Reasons to Use the Price Monitoring Tool
1. Better Understanding of the Market
One of the best ways of understanding the market is through price monitoring. It helps in understanding how the competitor’s price their products and from where they get their margins. It will also offer insight into what the customers are willing to pay. This data enables you to make appropriate pricing decisions to earn the profit margin which can keep your business at par with competitors. It also helps in knowing which product needs more attention or marketing efforts.
Price monitoring tool is not simply about monitoring the sales numbers. It is about identifying how sales impact other areas of the business such as inventory or supply chain management.
2. Evaluate the Effects of Price changes
There are several benefits of using price monitoring software. One of the major benefits is that it helps in assessing the effects of price changes and promotions. It can also help monitor the competitor prices to ensure that your prices are competitive. It is crucial to analyze how your prices are performing as compared to the competitors. It is especially important when they offer similar products/ services. Checking their prices will make sure that your business doesn’t lose customers due to high prices than what they are likely to pay for similar products else where.
3. Tracking Competitor Prices
online price monitoring is the perfect way of tracking competitor prices. It will help in keeping an eye on the competitor’s prices and make changes in your pricing strategy. With the help of a price monitoring tool, it becomes easy to track prices. Just put the URL of their website and the software will extract data regarding their latest product listing. You will be notified if there is a difference between what they are charging and what you charge. This helps in filling the cracks.
It is to beknown that tracking the competitor prices doesn’t mean you blindly copy the. It only helps in determining whether you must lower the prices to stay competitive with other businesses offering similar products/ services.
4. Set Realistic Goals
The thing about cost is that it is not only about recovering the initial cost but also about its impact on your profitability. The way to maximize your profits is by selling the products at a higher price than the cost.
If the products are sold for a lesser price than the cost, the profit margin will be negative.
If you want to get your business found easily, a price monitoring tool can help monitor the SERPs. The tool will evaluate where the competitors are positioned on Google and other search engines. It enables you to improve your own ranking. If a brand’s website has a higher ranking than yours, customers are going to see it while searching for the product/ service. By improving the website rankings, you can get customers to come to your business for buying the desired products.
5. No More Losing Sales to Online Buy-Box Sellers
When a business begins to sell products on Amazon, it’s important to believe that only people buying the products are the ones who click on the brand’s ad. However, there are other types of buyers who search for a product on Amazon and stumble upon buy-box sellers. Such customers are looking for a particular product and they browse through the listings till they find the product with a price that suits them. They are in a hurry to buy the product so they go ahead with the first item which catches their attention. If a buy-box seller offers the item, they will go ahead!
The above-mentioned information reflects the significance of using price monitoring tool for business intelligence.
6. Huge Impact on profits
Profits are the main reason for every company’s very existence. Pricing wars often make companies lose their focus and ultimately lead to obsoletion. Price monitoring tools are vital in this kind of situation. Price monitoring helps in balancing the price changes in the distinguished product categories. You must take pricing seriously. If you are clueless to begin, just order a free demo from PriceIntelGuru and let the platform guide you with its expertise.
Facts are there suggesting that price monitoring tools have a huge impact on profits. When the pricing is optimized what aligns is the revenue. That’s how pricing can be of great help in profit generation.
7. Saving Time
Time is money. And in today’s fast pace digital era, every second means money. So, efficient and fast results are the need of the hour. You can’t be over-occupied in the tracking of competitor prices. There has to be a system that helps you define the goals and also to achieve them effectively. We understand that it is easier said than done, but it is possible with price monitoring tools. You can focus on operations if you are not knee-deep in the puddle of price tracking. That will help you make transformations which can drive results.
8. Accelerate Price Changes
Now, we have said about price changes and the pace at which that happens. The main aspect here is to be on time to get the desired results. For instance, if you are selling jackets at $100 and your competitor is selling at $98. You know that dynamic pricing uses constant price changes to attract shoppers. So, if their tool makes a change and the price is $95, it is more likely that your consumer may consider switching if the product is competitive and offers a lower price. As a result price monitoring can do those changes according to the set data. You can be on top of everything without being present for the price change. That’s how automated price monitoring tools work.
Automate Your Pricing Needs in One Go
AI is the future. With drastic changes like creating videos and creative images, AI is evolving. Pricing is going to be strategized and practiced with the help of smart AI tools. You need to be up the speed to stay relevant. Make the smart choice and schedule a free demo today. Or contact us to know more about our pricing tools.