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When you hit that target of orders of the month in just 2 weeks, when you make an amazing campaign online and it goes viral, it just creates so much peace and relief. The same happens when you see that you are performing better than your competitors in your field. And everybody knows that the competitive scenario in retail and e-commerce sector is fierce. So, it is essential to meet the customer expectations and stay ahead of the competitors in the market. A business needs a great understanding of the market as well as competitor prices which can be achieved with the help of competitor price comparison.
What is Competitor Price Comparison?
Now, competitor price comparison consists of monitoring the competitors regularly and comparing the prices of the similar products sold by the competitors. The data on prices offered by the competitors enables businesses to make informed decisions regarding their pricing strategies. Competitors price comparison also helps in identifying the areas where a business can improve its pricing to gain a competitive edge.
For competitor price comparison and analysis, a business can take the help of various tools and software available in the market. Customer surveys, market research, and online price tracking tools can be of significant help! With the automatic competitor price comparison, you can save yourself the hassle of manual tracking and rest assured about accurate results.
The automated tools also collect information from online marketplaces like eBay and Amazon for price comparisons of the similar items offered by various sellers.
Why Competitor Price Comparison is Important?
As mentioned above, price can make a significant impact on any business. Here’s a look at role of price comparison for e-commerce:
1. Improved Rate of Success
With ecommerce competitor price comparison, a business can create an effective pricing strategy for growing the business in the market. It can stay ahead of the competition with the technique and identify the best price for its product.
2. Attract Buyers
One of the main benefits of retail or e-commerce business is that it enables the customers to compare prices from various portals and grab the best deal. If you offer competitive prices, the buyers are highly likely to buy from your brand ditching the competitors.
3. Boost Sales
When customers notice that you sell a similar product at a lesser price, they will be inclined to purchase from you and also come for repeated purchases owing to the best deals in the market.
4. Enhance Brand Reputation
Offering products at competitive rates also creates a positive impact on the brand’s reputation. When customers see that you offer value for money, it leads to an increase in faith and trust in your product.
5. Beat Competition
In a highly competitive market, it is essential to stay ahead with the right pricing strategy. Focusing on price comparison with competitors can help in adjusting your own pricing so that you can continue to enjoy the competitive edge.
Benefits of Competitor Price Comparison
1. Easy to Use and Implement
One of the major benefits of price comparison competitors is that it is simple. It only needs you to perform some research into what competitors are offering to the buyers and at what price. You don’t need an in-depth insight into the market. Especially with the automated tools, it is easy to find the prices of the products/ services.
2. Low Risk
Companies always stress about pricing the products appropriately as it directly impacts the revenue. However, when a business copies the pricing strategy of the competitors selling similar products, they can strike a balance between staying competitive and making profit. As the prices are similar to the competitor’s, a business can stay assured that their pricing strategy is within the industry standard.
3. Cost- Effective
With competitive price comparison, one can significantly decrease their spending in conducting market research. It helps in saving time and money which can be devoted to improving other aspects of the business such as sales and marketing. It also enables a business to get the product in the market quickly without any extensive product research.
4. Informed Decision making
Imagine a skilled craftsman selecting the perfect tool for a task. Competitor price comparison empowers manufacturers with data-driven insights, enabling them to make informed decisions about pricing strategies, production volumes, and market entry points. And not just that, if you go for PriceIntelGuru’s pricing tools you can relax and focus on your business growth while everything else will be done in an effective and automated manner. Now, that’s how business should be done!
5. Market Study
Think of a telescope revealing distant constellations. Competitor price comparison unveils market trends, enabling manufacturers to anticipate shifts in demand, consumer preferences, and emerging opportunities.
Steps to Implement Competitor Price Comparison
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1. Research the Competitors
The first step for price comparison competitor monitoring is to identify the competitors and research on them. Having a clear understanding of the opponents helps in gauging their pricing strategy and what they are offering to the customers. Analyze their expenses and promotional methods for determining how to rate your merchandise. Staying up-to-date on the competitor’s pricing strategy is the key to beat the competition.
2. Set a Profit Margin
Though it is important to offer competitive prices, a business can’t let go off its profit margin. A business needs money to survive and thrive. Hence, decide a profit margin and then set the prices for your products/ services so that your business is sustainable in the long run.
3. Dynamic Pricing
Implementing dynamic pricing can help as it enables you to change and adjust the prices of products/ services in real time depending on the market needs, competitor pricing, and stock levels. It helps a business not only stay ahead of the competitors but also optimize the profit margin.
4. Leverage Customer Data
A business must always rely on customer data as it offers significant insight into the buying preferences and patterns. This data helps in creating pricing strategies for meeting the customer needs. If you observe a set of customers buying a specific product frequently, you can provide personalized discounts to them for encouraging more purchases.
5. Low Shipping Cost
Shipping cost plays an essential role in the pricing of the overall purchase of a product. By charging low you can come up with competitive prices as compared to others in the market. It helps in attracting more customers.
6. Read Customer Reviews
Consumer feedback is one of the most significant aspects of the business. You must check the customer feedback and reviews on your as well as competitor’s products. It helps to know how buyers view your competitors. This gives an idea about the areas where you can beat them. Also, having actionable steps for improvement helps in enhancing your strategies that are more customer-centric.
Navigating in the Right Direction
Competitor price comparison plays a crucial role in the retail and eCommerce sector. It consists of regularly monitoring the prices and comparing similar products offered by the competitors. However, it should be considered along with other factors such as market demand and cost of production for determining the pricing strategy. PriceIntelGuru is one of the leading pricing intelligence companies helping industries grow multifold. So, contact us today!