Market pricing correctly is vital because customers are always looking for the best bargains.
Competitive price is done by finding the exact price values so that you keep the prices high enough to earn maximum profits and low enough to attract customers. Even though price monitoring is often overlooked, it is important. To secure good margins, companies have dedicated teams and software to monitor competitor pricing. They are investing money and resources to get an optimized competitive price.
Finding the right products for monitoring is the initial step of the Competitor Pricing Strategy. This might usually be a certain category that you are strong in the market. Choosing a wrong product category and putting your resources in that will lead you nowhere. You must know the precise market segment you are in.
Finding the Right Competitor
The business scale: global or local audience and company’s outreach all the factors come into play when choosing your competitors for the price monitoring. This helps in finding the precise data you need to monitor competitive pricing.
Real Time Monitoring
Real time market price monitoring keeps you competitive in the market. Either if it’s new products or old products with elastic prices, price monitoring helps you decide the current price of your product should be and gain the maximum profit of of it.
This you do by tracking customers’ behavior toward different prices. Record the varying demands at different price levels. Deep knowledge of your products puts you a step ahead of your customer and foremost, your competitor, as you’d know how they will react if you decrease or increase a price of a certain product.