Pricing your products competitively whilst securing a healthy profit margin is the ambition of every business. With customers now more tech savvy and commercially aware than ever, ensuring you’re keeping up with your competitors is essential.
Competitor Price Monitoring services enable businesses to retrieve important data on their competitors price changes. As a result, you can respond quickly and remain competitive in a saturated market. Whether you choose to receive price updates monthly, weekly or even daily, you have access to important data in your industry.
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.
The extra costs count
While the price of the product remains crucial to entice a customer, research suggests that customers also care about additional pricing factors. A recent study revealed a whopping 56% of 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 surprise them with unnecessary costs. Instead, a way to ensure they complete the transaction, offer them benefits such as Free Warranty, Free Postage and Returns or a support package which they would usually pay for. These small gestures can make the difference when you’re unable to change your prices.
Look at out-of-stock products of competitors
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 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.
Brands always try to entice customers with spontaneous deals and offers. Going above that, some brands have continued to keep their customers happy with long term benefits.
Some notable examples of this are ComparetheMarket 2 for 1 cinema tickets, Three Mobiles Wuntu rewards app or O2 offering their customers priority tickets at music gigs. These additional benefits have proven to be successful methods to secure a popular brand identity. Ongoing benefits don’t need to be ostentatious, pairing up with retailers and negotiating a small percentage discount for your customers still offers a benefit that will appeal to some of your customer base.
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 tool enables you to measure yourself against competitors and amend your pricing strategy when it’s most important.
Fortunately, when you can’t beat competitors on price you can still entice customers with extras. Understand the customer experience, what perks they value and what keeps them coming back to you.