Tracking the price of an item from a competitor used to be fairly simple. You could hire a secret shopper and have them go to a competitor’s shop and check up on the prices and practices of the business. In some cases, this still happens, but it is not as common anymore. Most businesses are either run online or have online capabilities, so now you have tracking software to help find out what a competitor is charging.
Find Out About the Competitor
Before tracking the competitor, you need to know who they are and what people are saying about them and you. Does the competitor offer special deals if you are a rewards member, do they offer rewards of any kind or give special discounts often? Do they have a lot of store brands or store brands only? These kinds of questions matter so you can price accordingly. If you have a brand-name item that you want to sell for $6.00 and the competition offers a store-brand for $2.99, you may be tempted to lower prices. However, yours is a brand name, which is different than the store-brand. Consumers realize this and will pay for when they want a brand name.
You should also read reviews about the competition and your business from consumers. With Facebook and other social media sites, there is a lot of information out there about every company. Read what people are saying about them and you to find out what they think. You may find that people think your products aren’t as good quality because they are lower in price or that the competitor price is too high.
Benefits
By tracking prices often, you will be able to target your customers better. If you sell a product higher than other sites, you will not get as many sales. Target your products and prices as to what your customers want. Of course, everyone wants inexpensive items, but it is important to have a competitive business.
Most customers will choose the price over the quality though many will shop around to get a good deal, which doesn’t necessarily mean low price. For example, if your competition is selling an eight ounce bottle of lotion for $4.00 and you have a 16-ounce bottle of lotion, it is comparable to sell it for $8.00. It is double the price, but the consumer gets double the amount. Many consumers are now paying close attention to the amount they get for the price they pay.
If you are not already competitor price tracking, then you should be. There are many benefits. Consider Price Manager for your tracking needs.
