Pricing strategy for your business can be built in two ways:

  1. From the commercial strategy (top-down);
  2. From your transaction, competitor and customer data (bottom-up).

The first way implies that you calculated all your expenses, associated with the product, and made a selling plan with the certain prices included. The second way is more flexible. You analyze the selling statistics, customer behavior and competitor prices to define your price strategy.

As a rule, most of your customers compare prices of different distributors and sellers. It doesn’t takes not much time nowadays to open several a few browser tabs and make run a quick search onf a product you need on different marketplaces. Besides, each of your customers has likely had the experience of buying the same product some time in the past. It means that people always have some expectations about products and prices; they already keep a good, normal or average price in their consciousness before buying. If your current price fits their idea of a good price for this product – congratulations, you just made another sale!

If this logic is correct, our key question is to find out how do customers perceive the price and the value of a specific product. Here the competitor prices monitoring comes into play.

By monitoring competitor prices we see the same things as our customers and get the same information they do. In the aggregate, it helps us to get a better understanding of what is a good price for a product in a mind of our customer is. 

Competitor prices tracking tools

Before you start searching the for appropriate software for scraping prices, you need to formulate and describe your current pricing model. What is your marketing niche? If you sell Volvo, you definitely don’t compete with Lamborghini. If you sell used computers to the offices nearby, you do not compete with the sellers of top-gaming platforms at in your area. Find out who is your true rival at in the marketing warfare is.

Next, decide what aspects having influence on prices should be involved into your research to draw the most realistic portrait of your rivals. Describe your competitors:

You always need to keep in mind the answers to the same questions for your company, so take into consideration the general information about your competitors too.

Compare your product assortment line-up against competitors’ listings. Especially pPay specific attention to the products that were recently added to their stores. Figuratively speaking, Iif everyone is selling Tesla and your warehouses are full of Volvo, maybe you have already missed some trends.

And finally, compare prices. Make a selection of your key products and calculate the price index for each of them. To measure the price index for a certain product – let’s say Volvo XC90 – divide the cost of the competitor’s Volvo XC90 by the cost of your store’s Volvo XC90 and multiply it by 100.

The set of relative rates – price indexes – will help you change your prices reasonably. It doesn’t always mean always and only reducing the price. You may find out that your price is too low comparing to your competitors’ and it can be increased without prejudice to your business.

Here are some more ideas to calculate and think of:

And don’t forget that there is no rule telling you to keep the average price or the lowest price as possible. A lot of circumstances affect your pricing strategy, not only naked numbersbare figures, math and statistics.

H2. Competitor price monitoring software

There are several options to choose from if you want to solve the issue of competitor prices monitoring automatically. The criteria of software choice are the following:

Below is a short overview of some competitor price monitoring software.

Brainbi – competitor monitoring tools for advance price analytics. It scrapes products data, shows you the dynamics and sends notifications on to your email if the competitor’s price changes.

Octoparse – modern scraping software that allows you to keep an eye on all products of each competitor and extract data from different web sources by schedule.

Import.io – software solution for to automatically and routinely gathering of reliable and accurate data from any e-commerce website.

Conclusion

As well as analyzing your internal business processes, competitor prices tracking makes your company competitive, especially during a crisis. Working with modern data extraction and prices analytical software helps you to improve the effectivity in relation to other players and take a confident market position.

Leave a Reply

Your email address will not be published. Required fields are marked *