Competitor products price
Price is one of the most important factors behind any buying decision.
But is the price too high? Too low? And can you get a better deal or with another product from another brand?
Given the shopper thought processes, brands and retailers are ultra-competitive with their prices.
So, they continuously change by the minute. And the wrong price can reduce the sales of an excellent product or service.
Price has an impact on the bottom line as it provides a margin and returns on investment that keeps business trading. But pricing is also your reputation: how potential customers perceive your business. Are you premium? Budget? Or mid-level?
But what is Price Intelligence?
Price intelligence monitors and analyses competitor and market pricing data.
Also to allow you to make smarter pricing decisions.
Why is Price Intelligence Important?
It’s essential because retail pricing is a fast-paced, competitive, and the market is changing all the time—the right or wrong price impacts on sales and profitability.
The ability to compare prices and view products online has resulted in webrooming and showrooming.
And the scale and speed of eCommerce results in online prices continually fluctuating.
Amazon and other brands adjust it’s products’ prices every few minutes. This, in turn, results in other competitors copying the price change. Pretty soon without Pricing intelligence retailers could be deserted.
Price wars will harm margins, as competitors all race to the bottom. They sacrifice profit for sales.
The growth of marketplaces like Amazon and eBay, who make it easy to sell one line brings new retailers into the market, increasing competition and making it harder to track prices quickly.
Then you have the larger retailers like Next in the UK who are increasingly becoming Omnichannel.
So Pricing Intelligence ensures you will be either to be competitive, protect a margin, establish a reputation, or something else. Pricing intelligence is crucial because it helps you achieve your goals.