Instead of taking everyone as your competitor and running a long race, identify people who are doing just better than you and rise above them. You need to understand if there are multiple players in the market then there is enough market as well. Agreed that a single retailer is often competing against thousands of retailers for any particular product in any given category but that ways you are not playing the game right. You need to identify ideally two to three competitors whom you are actually competing with. Alternatively, to set higher prices while keeping the same sales dynamic. It’s pretty common to meet retailers who don’t know which competitors really influence their performance and sales. So you need to compete and everyone out there online is your competition not literally, meaning that our strategies and planning should be based on keeping 100000 of e-business and their strategies in mind. Find the competitors actually affecting your sales Well, let’s make the best use of competitive pricing intelligence. According to the latest PWC research, price is the key factor in a purchasing decision. If your prices are not similar to or better than the next retailer, you’re going to lose the sale. Online shopping means online comparison shopping. In e-commerce, it could very well be the price. Today, the e-commerce retail market is highly competitive, thus a Category Manager is engaged with general strategies to counteract the activities of competitors. Since we have understood what is competitive pricing and monitoring the strategies for growth, we will now discuss what are important steps to creating a successful competitor price monitoring strategy. Ensure you are providing those to success in your business. Competitive price monitoring will only be of use if the competitors, who directly influence your sales as well as price positioning, are correctly defined.Ĭustomers will always prefer lower prices. By the way, competitor research is not really an easy task. The key is to have accurate information to price the products high enough to maximize profits, while low enough to win customers. What’s more, most pricing managers today simply don’t have the time to manually track competitors’ websites for each of their products. However, pricing the products too low can drive down margins and make it impossible to sustain a business. But with constant price war, new competitors popping up daily and therefore a constant threat to match up with the better price for your customers to get a better deal is always looming over and staying on top of the pricing game can be daunting. Therefore, to win over customers it’s imperative to price the products competitively. It’s not uncommon for customers to scour the internet for the best bargains. Especially if you are to apply complex pricing algorithms and rules. List of products, out of stock at competitors sites : Increase profit margin Add to featured product Increase to search network advertising budget to rank top on searchīut this task is almost manually impossible because with the thousands of online store product names (SKUs), it’s almost impossible to manually apply the price tracking and price changing.List of products, where I’m higher than my competitors : Why not decrease the prices a bit to increase the sales and revenue.List of products, where I’m cheaper then my competitors : Why not increase the prices, big margin opportunity.The retailers change their inventory prices very frequently may be several times in a day or week and you need to track these changes for each individual competitor, brand and product group right after your competitors have re-priced their goods to find out : These days, since its highly competitive marketplace, it is really essential to track and monitor your competitors’ prices, promotional tactics and offerings in real-time, so you can weigh-in your strategies, customer responsiveness and market standing. So competitor’s price monitoring is an essential part of creating a winning pricing strategy. ![]() ![]() Thus setting the right online prices can be game-changing for your bottom line. Do you know that the most important thing in retail is pricing? How important is it to monitor or track your competitor ‘s price? With the increase in the competition, it’s really important that you are playing at par with the competitors around at the very least, in fact, better than the rest. Are you a brand? or trying to become a retailer brand?.
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