Price Monitoring is a Key for a Successful Business
Price monitoring is the process of constantly monitoring the value of goods in the market, the result of which provides a basis for deciding on pricing. Price monitoring is a fundamental factor in choosing a pricing policy.
Price monitoring with the Z-Price service helps:
➠ Automatically track the structure of prices in the market;
➠ Decide which strategy to use in a given period;
➠ Keep the pricing policy in a competitive state;
➠ Know the market situation, practically, in real-time;
➠ Make the right decision in the dynamics of the market;
➠ Analyze competitors online using automatically generated reports.
Price monitoring can serve different purposes for different organizations. At the micro-level, this data can be valuable to retailers, where prices are extremely competitive and can be a powerful differentiator for a product. This allows businesses to understand changes in prices and promotions and enables them to change the strategy quickly.
Data about prices can also be very important at the macro level. Monitoring a selected niche of products can indicate whether there is inflation or changes in the market that may require action. This can help you figure out if you need to reallocate resources.
Manufacturers and suppliers need to monitor that all retail outlets are selling their products at the recommended price. Thus, the Brand earns the image of a reliable and stable manufacturer, the prices of which are always the same in any store.
This tactic builds more trust with customers and a positive brand reputation.
Price monitoring helps Brands to detect stores that are unauthorizedly lowering prices for goods, in other words, to identify dumping. The absence of dumping is precisely the stable pricing policy of the Brand and a good reputation in the market.
But, in pursuit of a customer, stores sacrifice the brand's reputation and quite often attract customers using a low price strategy. The Z-Price service provides tools to combat dumping stores.
Monitoring makes it possible to analyze the market, including among analog products. By resorting to monitoring analogs, the Brand can objectively assess its pricing policy and make adjustments depending on the market situation.
Online stores need to be aware of all the promotional and price offers of competitors. This is important because retail pricing is a fast-paced, competitive, and ever-evolving world where the right or wrong price has a direct impact on sales and profitability.
Today's consumers are more price-sensitive than ever before. The ability to compare prices using smartphones has led to the emergence of demo web rooms. Because shoppers can browse the products in the store or online and check if they can get the best price from another channel. There are many mobile apps designed specifically for price comparison and most retailers offer matching pricing policies to stay competitive.
In addition, the speed and scale of e-commerce mean that prices on the Internet fluctuate much faster than conventional retail stores can. Amazon is said to adjust its product prices every few minutes, and many big brands and retailers are doing the same. Price changes often lead to a waterfall effect, where the first brand or retailer to change a price triggers subsequent changes for competitors.
This can lead to price wars that can negatively impact profitability, as all competitors tend to the minimum and sacrifice profits to sell.
Plus, the growth of trading floors does not stop. Marketplaces like Amazon and eBay are bringing new sellers to market, increasing competition and making it difficult to track prices at scale and high speed.
So the ultimate goal of price monitoring is to ensure that prices always align with the main business goal: either to be competitive, to protect profit, build a reputation, or whatever. Price tracking is essential to meeting your goals.