Price Monitoring Software – a Retail Necessity
Modern consumers have developed two traits that are very unfavorable for retailers. They became distrustful and resourceful. As a result of this combination, consumers tend to always compare prices.
In order to stay in the game, retailers need all the help they can get. One of the most important allies along that way became the price monitoring software. For example, Price2Spy is one of those solutions that offer a wide range of possibilities for all kinds of retailers.
Price monitoring software offers a wide range of possibilities for all kinds of retailers.
Let’s explain it in a more detailed way.
1. How to set smarter prices with price monitoring software?
Consumers cite that the price product is one of the key factors when deciding from which retailer they are going to buy. But wait, don’t jump to conclusions. This doesn’t mean that the shoppers would go for the lowest price on the market. In fact, around 60% of consumers go for a retailer who has the optimal price.
Now you must be wondering how you are supposed to know what is the optimal price?
Well, that’s where price monitoring software comes into the picture.
For starters, you can use it to find more about your biggest competitors. Once you gain a better understanding of their pricing actions, it’s time to act. Your end goal is to beat their prices. But, how are you supposed to do that without starting a price war?
With the help of price monitoring software you wouldn’t go for simply undercutting competitors’ prices. As you’re aware, this doesn’t make much sense. You would end up lowering and lowering your prices, and that wouldn’t benefit anyone. You need to do something smarter.
What you want is a pattern which will adjust the market fluctuations and demand automatically. As you know, many factors can affect customers’ buying decisions. You cannot influence some of them, but price monitoring software will help you to react accordingly.
This might seem difficult, but if you think about it, you’re already using this principle. For example, you know that the holiday season can affect the demand for some of your products/services. In that time of the year, you for sure make some price adjustments. Well, price monitoring software will help you to do that, but throughout the whole year.
That’s possible due to the fact that this software solution is based on a dynamic pricing approach.
But, there’s more to it.
2. Create unique selling proposition
The price flexibility that the price monitoring software can provide you is very valuable. Using a dynamic pricing approach will allow you to easier and timely adapt to price changes. However, dynamic pricing is not the only solution that a price monitoring software will offer you. In some cases, the downsides of dynamic pricing can become very visible.
Dynamic pricing should serve as a guide, but that does not mean that prices should be constantly changing. One of the things that customers are not so fond of are constantly price changes. If your prices are all over the place, you don’t come across as a serious brand or retailer.