Updating your prices or making a change to them is not a task that should be taken lightly or on impulse, as we can lose our competitive position.
That is why it is best to study and analyze the right moment taking into account various criteria, including knowing how they are behaving and what movements my competitors are making.
All competitors in general or the closest competitor is one of the elements that we must control, since their actions will have a direct impact on our possible strategy or positioning.
If our main rival establishes lower or higher prices, it will automatically put us in a position that we must know about.
Having only the information in a timely manner will not help us either if we do not have the fresh data and practically in real time as a daily control exercise, since a late action in the modification or strategy of our prices can cost us the loss of sales and even market share.
Having a competitor monitored helps us at this point, for several reasons:
- Know your price change in real time : With this we can establish and position ourselves immediately without sacrificing sales, as well as maintain or gain our position.
- Know if it has stock : If our competitor changes its prices, it may be directly linked to the stock it has and knowing it will not also help to know how to act. Even if you don’t have stock, we can take advantage of it.
- Know if it is a promotion : It is important to know if this price change is motivated by a promotion or an offer.
- Know your purchase price: This can help us to intuit and analyze, not only how a competitor sells, but also their possible benefits when purchasing their products, since if you always have a large amount of stock and low prices, you may have a profit margin in your product purchases and this is important to know.
That is why a monitoring tool will always help us establish a strategy and follow criteria with real information.
This strategy does not always have to be to set the price below my competitor and that is why an approach will have to be followed in relation to its brand, either to be the cheapest or to match it, or even to do it only in those products that you think are convenient to compete.
In the world of ecommerce, customers always tend to compare alternatives based on different elements, with price always being the most important, which is why we should never base a pricing strategy on something specific, nor based on intuition.
Monitor your competitors and obtain reliable data in real time, this will help you to know your trajectory and that of your rivals, and use this knowledge to gain market share.
