Industries : Lighting

Price monitoring techniques in lighting industry

Innovative and efficient this how we'd characterize our clients from this surprisingly competitive industry, carrying out international operations (across many different countries, sometimes more than 20 countries) by very small and compact teams.

On the other hand, a multitude of small players are emerging, most of them using alternative sales channels (like Amazon / Ebay) which makes effective price monitoring even more challenging.

Furthermore, in many cases product pricing comes in 'tears' (price A is applied when single product gets ordered, while price B counts for larger quantities). This brings another important requirement - capturing quantities / prices for each individual tear.

This industry has highly standardized part numbers, meaning that Automatch is possible in most cases. However, some of the manufacturers have really short part numbers (for example: 8145) which can lead to potential mismatches. In such cases we usually go for additional Automatch validation - making sure that the brand name is a match as well. On the other hand, this approach is not fully error free, since (believe it or not!) brand names are not fully standardized (for example: some site will say GE Lighting, while another will name it General Electrics).

In quite a few cases we have coupled standard Price2Spy price monitoring service with crawling / scraping competitor website product content, in order to provide our clients with a source of structured product data - typically containing product name, description, image, and individual product attributes).

Price2Spy will enable you to identify your competitors' pricing policies (which probably differ from one brand to another, from one product category to another), and to swiftly react to important price change alerts (for example, when a competitor lowers the price below a certain threshold). In case MAP-enforcement is needed, Price2Spy will indicate the MAP-pricing violations.

Best price monitoring practices

Here is how Price2Spy can help product managers from this industry

  • The number of competitors depends on market ambitions (smaller players typically monitor 5-10 most important market players; more ambitious players monitor the whole landscape (in some cases more than 50 competitor sites)
  • Marketplaces like Amazon / Ebay need to be monitored as well, usually for the lowest price offered for the given product;
  • In most cases the whole product range (1 000 - 10 000 SKUs) gets monitored.
  • More ambitious clients go for full API integration (Typically, client's software initiates the process by inserting new products into Price2Spy. Price2Spy then performs Automatching, and feeds fresh pricing data back to the client's software);
  • Price change alert emails are used for day-to-day operations (especially when it comes to detecting  MAP violations)
  • Use Pricing Strategy module to identify products with price increase / drop opportunities - it will result in a clear and interactive list of products and suggested pricing changes;
  • Most recent price changes, as well as stock movements (per brand or category) can be spotted via Pricing Dashboard; the same goes for the share of cheapest products per site. In most cases these reports are segmented by categories / brands / suppliers;
  • MAP (minimal advertised price) violation module is used in order to spot competitors who are playing against the rules, and document such occurrences.