{"id":3877,"date":"2016-09-30T10:46:55","date_gmt":"2016-09-30T10:46:55","guid":{"rendered":"http:\/\/www.price2spy.com\/blog\/?p=3877"},"modified":"2025-03-10T15:24:51","modified_gmt":"2025-03-10T15:24:51","slug":"competitive-pricing-intelligence-in-4-steps","status":"publish","type":"post","link":"https:\/\/www.price2spy.com\/blog\/competitive-pricing-intelligence-in-4-steps\/","title":{"rendered":"Pricing Intelligence: Reach Success in 4 Steps"},"content":{"rendered":"\n

Pricing intelligence is an irreplaceable part of today’s successful business. Pricing competition has become hotter than ever due to massive growth in online retail that’s driven by more and more customers. The transparency of eCommerce gives customers the ability to easily see which store has the lowest price or which one has the best offer for any selected item.<\/p>\n\n\n

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This means online retailers are constantly living with this pressure of competitiveness. Simultaneously, they’re spending hours and hours in order to check their competitors’ prices in order to keep theirs on the low end. There is no way out of it with traditional manual ways, no doubt. <\/p>\n\n\n\n

Let’s first discuss why price monitoring<\/a> and pricing intelligence are so important in today’s eCommerce world.<\/p>\n\n\n\n

Why Is Price Monitoring Important<\/strong><\/h2>\n\n\n\n

Retailers change inventory prices very frequently <\/a>– even a few times per day. For you, this means tracking these changes for each individual competitor. You can already tell what a daunting task this is. Then, why everyone is so into price monitoring? Why is it so useful? <\/p>\n\n\n\n

Well, a lot of data means a lot of information. What products you’re offering cheaper than your competition? What products you’re offering by a more expensive price? Have your competitors run out of stock? Price monitoring will allow you an answer to these questions. An opportunity for better sales and revenue, as well as a bigger profit margin, shouldn’t be missed.<\/p>\n\n\n\n

Here you can find more information about estimating competitor\u2019s turnover by constant price and stock status monitoring<\/a>.<\/p>\n\n\n\n

However, there is a straightforward way to see your position on the market, and at the same time avoid big data complexity. The solution is simple: start using a competitive pricing intelligence & competitor monitoring tool. This will help you keep prices up to date without the time-consuming manual efforts.<\/p>\n\n\n\n

Here are the essential steps that you need to know before using any type of competitive pricing intelligence tool:<\/p>\n\n\n\n

1. Find the Competitors That Are Affecting Your Sales<\/strong><\/h3>\n\n\n\n


The old saying ‘keep your friends close, and your enemies even closer’ turned out to be very true in eCommerce. Businesses need to have a clear understanding of their competition. What products are they offering, by which market prices, with who they’re cooperating, etc? Answers to all of these questions and a few more tips can be found here<\/a>. <\/p>\n\n\n

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However, you don’t need to gather information about all competitors out there. You need to define a number of competitors to benchmark with as well as the number of products. Depending on your preferences, you can start with a small number of products or go all in – there is no limit to it.<\/p>\n\n\n\n

Therefore, the first step in the pricing intelligence journey is to identify the competitors you want to benchmark against.<\/p>\n\n\n\n

2.Develop Your Pricing Intelligence Strategy for Perceived Value<\/strong><\/h3>\n\n\n\n

After you’ve become aware of who your competition is, the next step is to develop a pricing intelligence strategy for perceived value<\/a>. The expected question is what is the perceived value? <\/p>\n\n\n\n

Perceived value<\/a> is what drives customers to make a purchase. In other words, the value that they believe that a certain product has. For example, buyers can go to Amazon because they believe that’s the place where they make the most of their money. That might be true, but even when it’s not, they’ll still come back due to perceived value. <\/p>\n\n\n\n

Determination of perceived value is one of the hardest steps in pricing intelligence programs. A huge amount of complex data needs to be analyzed and understood. Everything comes back to understanding your target market. Are they bargain hunters or quality is more important than price? <\/p>\n\n\n\n

Therefore, it’s crucial that you understand what factors lie behind customer behavior<\/a>. <\/p>\n\n\n\n

It can be very hard to answer these questions, but once you do, your business will face great success. Yet, this task can’t be done without the proper help of the pricing intelligence tool.<\/p>\n\n\n\n

3. Find a Proper Competitive Pricing Intelligence Tool<\/strong><\/h3>\n\n\n\n


After considering all the previous steps, it is essential to find a reliable pricing intelligence tool to help you make proper business decisions. Thankfully, one of the pricing intelligence and monitoring tools that can help you with this is Price2Spy<\/a><\/strong>. Pricing intelligence for retailers is a necessity. However, a pricing platform such as Price2Spy has a variety of other clients as well. Working with both small family businesses and large international companies, we take pride in our flexibility. Moreover, we tend to provide the best price monitoring experience to our clients.<\/p>\n\n\n\n

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