Email List

How to Develop a Competitor Price Monitoring Strategy

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 email marketing 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 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.

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 email marketing 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 email marketing premium brand and has the DNA of an elite sportswear brand. It has nothing in common with budget clothing brands like Zara.

If Nike tried to price its shoes like Zara, the company would quickly go bankrupt, given Nike’s inherent brand DNA. 

Identify problems and adjust your competitor price monitoring strategy

After testing a price monitoring strategy or working with it for some time, you may encounter problems that require adjusting the strategy. 

For example, some products may run out at a competitor’s warehouse, or one of the competitors may change its website. In such cases, it is necessary to analyze the reasons for the absence or inaccuracy of data and make a decision, for example, on the advisability of excluding a competitor from the price monitoring group. 

Analysis and customization of the competitor price monitoring system from iDatica will allow you to keep the received data up-to-date. Later, you will be able to view fresh data at intervals of, say, two weeks, to set the right prices for goods in the store and gain maximum advantage in the market.

Scroll to Top