When faced with a choice between different products with similar features, which product will the customer buy? Sure, in some cases, brand loyalty might sway them, but in most instances, customers will choose the product with the best price.
This is where competitor price tracking comes in. It allows you to always know your competitors’ product pricing to choose the right pricing strategy. And in this post, we’ll show you everything you need to make wise decisions with competitor price tracking.
As the name suggests, competitor price tracking is a tactic for monitoring your competitors’ pricing daily to get more insights into their pricing strategies, how often they change their pricing, and when they run promotions.
These insights, in turn, can then help you shape or improve your own pricing strategy to sell more and smarter.
Yes, with all the tasks on your plate, competitor price tracking may sometimes seem insignificant, especially if you’re sure of your product’s quality. However, pricing is a significant factor, so you can discover new opportunities when you know how much your competitors charge for the same (or similar) products or services.
But competitor price tracking goes further, offering plenty of benefits:
When tracking your competitors’ pricing, you’ll not only do so in the present but also have access to their historical pricing. From this data, you’ll be able to identify trends and patterns that can help you develop an effective pricing strategy.
For example, you’ll see the effect new products in the market have on older products. Likewise, when studying your competitors’ pricing adjustments, you’ll also learn when certain products are in demand and their popularity wanes. If you’re new to the industry, this will give you the knowledge about seasonality to make more accurate forecasts.
When you use competitor price tracking to shape your pricing strategy, you’ll be able to price your products more dynamically. In other words, you’ll adjust your pricing based on the market and your competition’s strategies.
You can run promotions and sales at strategic times. Likewise, you’ll eliminate running promotions when your competitors price their products lower, and you simply can’t compete. Similarly, you’ll increase your pricing when demand for a product is high and reduce pricing when demand declines.
It’s important to remember that, while you can do this manually, it borders on the impossible, considering the sheer amount of competitors. For this reason, you’ll likely need a tool to help you automate the process.
When you price and adjust your products competitively, your products will always be, simply put, priced right. This is especially relevant when you consider that about 70% of consumers state that pricing was the most important factor they considered when buying a product.
Ultimately, this means that you’ll always be in a position to increase your conversion rate and make more sales.
Competitor pricing goes further than making more sales, however. It also allows you to maximize your profits.
For example, through competitor price tracking, you’ll see for which products there’s less competition in the market or where you’re one of the few vendors. You can then increase your prices for these products.
Moreover, you’ll see where the market is too competitive. And when you have products in this sector, you can reduce their pricing to stay competitive. Where your margins are already too low, you can rather focus on other products, where you’ll be better able to compete and generate higher profits.
By now, you know online stores no longer only sell their products on their websites. They also sell on social media, Amazon, and other marketplaces. In many cases, they price their products differently on these platforms based on customer demand, platform promotions, and other factors.
When you use competitor price tracking, this no longer inhibits you from staying competitive, as you’ll always know your competitors’ pricing on every platform. You’ll maximize sales and revenue no matter where you sell.
In addition, when you consistently price your products competitively, you’ll become known as a retailer with the right prices over time.
Now that you’re itching to get your hands on competitor pricing information, the challenge is: where do you find your competition’s pricing information?
You have your pick of the litter, but the most straightforward sources for competitor price tracking are websites, online marketplaces, and review sites.
Depending on your industry, you’ll have varying degrees of success when using these sources. For example, when you have an online store, it’s relatively to find your competitors’ pricing.
When you sell heavy machinery with customized quotes, it won’t be as easy to find specific pricing information.
Earlier, we mentioned that while you can do competitor price tracking manually, you’ll likely need a tool to help you automate the process. It’s the only way to do it effectively and efficiently.
Using a competitor tracking tool, you’ll get deeper insights into your competitors’ product catalogs, product-specific pricing, product launches, and more.
This is where ScreenshotAPI comes in. The platform allows you to take screenshots of several websites in bulk by only clicking a few buttons.
Take screenshots at specific times, extract the text from these screenshots, and unlock new opportunities to automate your pricing in tune with your competitors, governed by a few automation rules.
When you use ScreenshotAPI, there’s no reason not to stay up-to-date with your competitors’ pricing.
Learn more about ScreenshotAPI for competitor price tracking.
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