You need to utilize an array of different strategies to achieve the highest possible profitability for your business. Many of these strategies revolve around correct branding, better advertising, and instilling customer loyalty. However, just as important is competitor intelligence – something that a lot of entrepreneurs tend to forget.
Understanding the competition better allows you to make the necessary changes to your products and services, mostly when they work with a bigger portion of your target market. One way that you can have a better grasp of your competitors is through the use of a robust price tracking instrument.
Pricing it right means making it more appealing to consumers
As the term suggests, this tool gives you the power to track the price of other businesses’ similar goods and services. It is crucial, as you may have priced your offers too high, which is one of the possible reasons your competition has more customers than you.
At the same time, it keeps you from lowering your prices too much, which may result in your organization just breaking even and not making any profit at all.
Monitoring competitor prices paves the way for better price management, which then leads to more optimal pricing practices. And when you price your goods or services right, consumers will no doubt find you competitive, and look at you more favorably.
Why you should have this tool in your arsenal ASAP
To back up the importance and value of tracking competitor prices, here’s what statistics have to say. Over 80% of consumers conduct a price comparison before making any purchase. Sixty percent of them also tend to work only with merchants offering “good prices” on their products (or services).
With these numbers going beyond half of the consumer population, you should already see why proper pricing is such an integral component of the success of your business.