Eveloping a strategy for monitoring competitors' prices

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Retailers know that consumers who shop online prefer the lowest price stores. However, most don’t know how to respond to this behavior. The worst-case scenario is making pricing decisions in an information vacuum, without data on competitors’ prices for similar products. Whether you position your products as premium or prefer the low-end segment and sales, you should develop your own price monitoring strategy.

A good competitor price monitoring strategy acts as slovenia telegram number database a navigator, showing you what your competitors are doing and how you can respond so you don't miss out on opportunities.

Here are 4 goals that should be a starting point when defining the tasks that a price monitoring strategy will accomplish for your company.

Accuracy – price monitoring should be a source of accurate and reliable data
Timeliness – price monitoring should provide actionable information at the right time
Action – One of the reasons why some online retailers fail is the lack of real action based on price monitoring data
Competitive advantage – set goals that will link price monitoring data to increased market share, or revenue growth, or other important business outcome
Next, we'll look at the practical steps needed to develop a competitor price monitoring strategy that will help you achieve all of your goals.

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Step 1: Decide on your market positioning
Market positioning is the first and essential element of a price monitoring strategy. It will help you understand what kind of price data you need to collect. There is nothing more disconcerting than realizing that every competitor is selling their products cheaper than you. Without a clear brand positioning in the market, you can easily panic and think about discounting everything in the store.

Therefore, competitor pricing data should be used in a way that maintains your brand positioning and value proposition. However, market positioning is not only about the value proposition, but also about another, broader concept: brand DNA.

Successful brands typically have a specific brand DNA. No two successful brands have exactly the same DNA. This means that they cannot, by definition, succeed by selling products at the same price.

Take luxury sportswear brand Nike, for example. A pair of Nike Air Jordans starts at $200. Collectible pairs of Air Jordans have been priced at over $10,000, according to Money Inc.

Nike positions itself as a premium brand and has the DNA of an elite sportswear brand. It has nothing in common with budget clothing brands like Zara.