A buyer who feels that they have got a good deal is a happy buyer. A happy seller is one that has increased sales volumes and made a profit.
In a market with prices being more flexible than a yoga expert, price monitoring is essential to selling more.
Brick and mortar stores sell items at their static sticker prices unless there is a special promotion. But, keeping prices static in the online market can be disastrous.
Online shopping algorithms search and display relevant products to the buyer with the prices. So, price comparison is inevitable.
To keep in sync with the buyer’s perspective, the seller should also watch prices just as closely as the buyers do.
Online selling platforms also offer customers various tools that they can use to monitor prices.
Price monitoring solutions help sellers keep track of the price fluctuations in the market in real-time. Studying the price trends will help identify competitors with similar products in the same price range.
Sustainable Price Wars
Once you have identified your competitors, you can keep an eye on their price trends.
When you adjust your prices in response to a competitor’s price reductions, you maintain price parity on the digital shelf.
But, knee-jerk reactions and price cuts may result in a price war that harms the interest of all the sellers involved. You should instead use real-time price monitoring and adjustments to keep yourself in the competition and
remain attractive to the buyer without pricing too low.
Dynamic pricing is a system by which the prices of products and services are adjusted based on their perceived value and demand.
It is the model that is used by airlines to increase ticket prices during peak demand and as the flight date gets nearer.
The same tickets sell much cheaper when bought well in advance. Airlines use dynamic pricing to extract the maximum price out of their tickets based on demand.
Similarly, online sellers can adjust their prices and charge more during high demand. Conversely, they can also lower the prices significantly during extreme lows in the market to attract new customers and keep sales volumes going.
Maintain Your Identity
Regular customers may get put off if there is too much fluctuation in prices. Always prioritize customer loyalty and your brand image when you use real-time pricing.
For example, if being a premier brand is your USP, pricing your products too low may dent your brand image. It is important to retain your value and profit margins while also being flexible enough to stay competitive in the market.
Pricing Feedback and Analysis
Pricing tools help you intelligently analyze sales data. Study market responses and sales figures to identify the real-time pricing strategies that work for you.
You can plan future discounts and pricing offers based on the lessons from historical data. You can also quickly course-correct when your current pricing strategy does not give you the anticipated results.
Real-time price monitoring may seem like a tough task. But with
the right tools and the right expertise, you can improve your visibility,
competitiveness, and sales figures.
Flexibility in pricing is the key to beating the competition.