Pricing your products competitively while securing a healthy profit margin is the ambition of every business. With customers now more tech-savvy and commercially aware than ever, competitor price monitoring is essential.
But how exactly do you stay ahead of your competition and keep prices consistent?
In this article, we’ll show you 10 ways to beat competitors without changing your prices, and explain what Magpie DBX can do to help your company maintain its pricing position.
Why does competitor pricing matter?
Businesses need to retrieve important data on their competitors’ price changes. This way, they can respond quickly and remain competitive in a saturated market.
But along with aligning your prices with the market, or even beating your competitors on price, where else can you shine? Sometimes you won’t be able to lower your prices as much as your competitors, so here are some other ways to convert your customers.
How to beat competitors without changing your prices
Competitive pricing doesn’t have to mean changing prices. Here’s how you can beat competitors without altering your pricing model:
1) Count the hidden costs
While the price of the product remains crucial to entice a customer, recent research collated by the Baymard Institute suggests that customers also care about additional pricing factors.
Their study revealed a whopping 48% of US shoppers leave online payments due to being presented with ‘unexpected costs’. So, once you’ve nailed your product price, when trying to convert them on the checkout page, don’t give them a nasty surprise!
2) Look at competitors’ out-of-stock products
Pricing right is key, but how will a customer buy something if it’s not available?
When your competitors are running low on stock, this is your opportunity to provide customers with what they want. When an item is unavailable or simply harder to source, it can lead to buyers purchasing the products at a slightly higher price to get it.
Use this as a chance to retain a healthy profit margin without worrying about the competition of countless other retailers.
3) Entice customers with extras
One way to ensure they complete the transaction, offer them benefits such as free warranty, free postage, and returns. Alternatively, you could provide a support package that they would usually pay for.
These small gestures can make the difference when you’re unable to change your prices.
4) Try spontaneous deals and offers
These are a great way of showing your customers how much their business means to you. And the best part? They don’t have to happen all the time, so your pricing can still remain competitive.
Discounts don’t need to be ostentatious, either. Pairing up with retailers and negotiating a small percentage reduction still offers a benefit that will appeal to some of your customer base.
5) Know your limits
While competitor price monitoring is an effective method to respond to price changes, it can be equally important in helping you highlight prices which you may not be able to compete with.
The versatile Price Tracker tool from Magpie DBX enables you to measure yourself against competitors and amend your pricing strategy when it’s most important.
6) Understand customer expectations
Shoppers approach every transaction with serious thought, and if they choose your brand over countless others, you must be doing something right.
But that doesn’t mean leaving well enough alone. Getting to know your customers’ experiences, what they value and what keeps them coming back to you is essential to managing their expectations while ensuring your prices stay the same.
7) Think long-term
Some brands keep their customers happy with long-term benefits that do not affect general pricing.
Notable examples of this include Comparethemarket with its 2 for 1 cinema tickets; Verizon UP’s Super Tickets to shows, music or sporting events, which can be claimed every six months; and O2 offering priority tickets at certain gigs. These longstanding benefits have proven to be successful methods of securing popular brand identities that keep customers coming back.
8) Avoid price wars
Competitors undercutting you is unfortunately part of the business game. But on the digital shelf, it’s best not to act in haste!
Starting a price war will only lead to your customers feeling alienated and potential further monetary losses. If you think a competitor is trying to goad you, stand your ground and remind customers of all the things you can bring to the table as is. This should be enough to avert disaster.
9) Listen to customer feedback
Shoppers are very vocal about brands nowadays; they often use social media to compare their experiences and rate companies.
If customers don’t agree with your business’s pricing, you should add value in other ways. For example, incentives like loyalty programs, ongoing offers, or even something as simple as voucher codes at checkout will help you stay competitive on the increasingly crowded digital shelf.
10) Always be monitoring
Whether you choose to receive price updates monthly, weekly or even daily, using a platform like Magpie DBX means you’ll have access to important data in your industry.
And trust us, the right software – and the right team to use it – will make monitoring so much easier!
Maintain steady pricing with Magpie DBX
Every aspect of your business’s pricing strategy should be monitored via the Magpie DBX platform.
Not only do you get 24/7 reporting to see all of your products – and all your competitors’ products – in one place, you can also utilise promotion tracking during key seasonal events, as well as stock and shipping information to see how readily available your products are from partner retailers.
Want to learn how Magpie DBX can help keep your company’s prices the same, while ensuring you remain competitive? Get in touch with us and request a demo today!