There are a number of studies on the importance of price when making a purchase decision, both in the Russian and Western markets. The studies come to the same conclusion – price is the most important criterion that a buyer considers when making a purchase decision.
We have made a review covering the research of the Russian e-commerce segment over the last 3 years, the research findings clearly indicate that price is the most important factor for the buyer. Numerous studies for the US and European markets come to the same conclusions.
Understanding that price is one of the most important factors for the buyer, companies implement dynamic pricing, depending on the prices of similar products on the market at the current moment, and the most important element in this is monitoring the prices of competitors.
How does monitoring competitors’ prices help improve sales?
Let’s look at typical situations when companies use germany email lead price monitoring. The main cases are price adjustments for goods.
For example, before releasing a new line, a major smartphone manufacturer reduces prices on previously released smartphones. In a situation where there is no shortage of goods, all other things being equal, buyers will look for where to buy cheaper and large sales volumes will be demonstrated by stores offering the lowest price. And here it is necessary to promptly monitor price changes on the market and try to offer the most interesting, making a profit due to high volumes.
On the other hand, price monitoring will allow you to prepare for the opposite situation. When the manufacturer’s stock of smartphones runs out, but demand is still high, a company that regularly monitors competitors will notice that the number of offers has decreased, and at this point prices can be raised. Thus, price monitoring allows you to maximize profits both in conditions of excess supply and in conditions of product shortage.
Monitoring product prices will also allow you to:
- increase sales volumes;
- set competitive prices;
- forecast sales;
- find out the pricing strategy of competitors;
- implement dynamic pricing;
- justify the price to the buyer.
Areas where price monitoring is applied
Price monitoring is applicable in cell p data all areas of business where there is a competitive market. In general, there is no critical difference between industries in the area of price monitoring. The task involves collecting prices from competitors and then comparing goods. There are nuances in the facebook business manager the complete guide name of goods from different sellers or different article numbers. If the seller shows only his article numbers and does not show the manufacturer’s article numbers.
