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Competitor Price Monitoring: A Complete Guide to Set Profitable Competitive Prices

Competitor price monitoring is much more than just comparing your prices with your competition. It’s a more mature way that includes comparing your products even across countries and finding the right alternatives that serve the customers' demands.

Staying ahead in the market means keeping a close eye on your competition, especially regarding pricing. Many businesses, particularly in the B2B sector, struggle to maintain a competitive edge due to the opaque nature of competitor prices. This lack of transparency and historical price monitoring can leave companies guessing rather than strategizing, often leading to missed opportunities for profitability.

Competitor price monitoring is much more than just comparing your prices with your competition. It’s a more mature way that includes comparing your products even across countries and finding the right alternatives that serve the customers' demands. By doing a competitor product analysis, you tend to find alternatives that serve different areas of the world, thereby establishing more market share.

A price-conscious customer will seek a more economical alternative while a value-oriented customer group would want to buy an advanced alternative- for eg, something that saves time and operates with fewer instructions. Also, it includes evenly allocating profits across your channel partners for effective distribution. In this blog, we will explore more about strategically monitoring competitor prices.

Business Challenges without Competitor Monitoring

Common Challenges of Not Monitoring Competitor Prices

Businesses may find themselves at a disadvantage if the regular monitoring of competitor prices isn’t a part of your pricing process. Sales proposals from competitors can highlight instances where your pricing may not be competitive. Businesses often overlook the top 3 factors of competitive pricing to craft a strategic competitive pricing strategy.

Moreover, failing to re-engineer or recalculate competitor pricing to understand their price logic— such as cost-plus percentages or market-down discount structures—means missing out on crucial insights that could make your pricing strategy more informed.

Let’s look at a few common issues businesses experience. Are you facing any of the following challenges too?

  • Competitor price data is hard to access in B2B settings, often hidden behind login screens.
  • Sales teams frequently encounter competitor proposals indicating your prices might be too high.
  • There's a lack of effort in recording competitor prices for historical analysis.
  • Companies often don't analyze or adjust competitor prices based on their pricing strategies (like cost-plus or market discount structures) for deeper insights.
  • Historical insights are missed by not scraping B2B portals or importing competitor price lists.
  • There's a gap in analyzing B2C competitor prices on platforms like Amazon to adjust pricing strategies in your market segment.
  • Many businesses don't track how their pricing is influenced by or influences competitors, leading to uncertainty in market positioning.

Define Competitor Price Monitoring

What is Competitor Price Monitoring?

Competitor price monitoring involves the systematic tracking of your competitors' pricing strategies. It's about gaining a comprehensive understanding of how your product prices compare with those of similar products in the market, adjusting for variations by country and over time.

This competitive tracking is not just about watching the numbers but interpreting them to make informed pricing decisions that resonate with your target market's expectations and willingness to pay.

For example, if you sell an advanced product, like an electric toothbrush at an optimal price. To sell it in a different country with a price-conscious audience, you’d ideally look for economical product alternatives like the good old manual toothbrush to sell and keep generating revenue and capturing market share.

Likewise, you can look into different other competitive factors to narrow down your focus areas. This is where SYMSON’s Project can help you implement competitive pricing.

How SYMSON helps Manufacturer’s with Competitor Monitoring

In this project, we help you research your competition deeply so you can stay updated even with the latest information in the market. Here are the following areas we look closely into:

  • Alternatives in the Market (Per Country): This research includes identifying and analysing alternative products available in different countries. Understanding the competitive landscape on a country-by-country basis helps manufacturers tailor their strategies to local market dynamics, preferences, and competitors.

  • Similar Brands: Identifying brands that offer similar products is crucial for benchmarking and positioning. This involves analysing these brands' market share, reputation, pricing strategies, and product features to better understand your position relative to them in the market.

  • RRP Alignment and Monitoring in Your Distribution Channel: This aspect focuses on ensuring that the Recommended Retail Price (RRP) set by manufacturers is adhered to by retail and distribution partners. Monitoring RRP compliance helps maintain brand value, avoid market cannibalisation, and ensure fair competition among sellers. It also involves assessing whether partners are aligning with the pricing strategies intended by the manufacturer.

  • Same Product, Different Companies Selling It: This research investigates the presence of identical products being sold by different companies. It's vital to understand how widespread a product is across various sellers and platforms and how pricing strategies differ for the same product. This competitor product analysis helps in understanding market saturation, pricing competition, and opportunities for differentiation.

COMPETITIVE TRACKING BENEFITS

How is Competitive Tracking Beneficial for Your Company?

Competitor monitoring plays a pivotal role in this process, especially in terms of pricing strategies. From closely monitoring your competitor’s products, positioning and pricing, you can stitch information together to understand their strategy and tweak your pricing accordingly. There are multiple Advantages of Competitive Pricing for B2B Companies. Let’s now look at how meticulous competitor price monitoring can significantly benefit your company:

1. Understanding Competitive Pricing Dynamics:

The essence of competitive pricing lies in comprehending how your pricing compares with that of your direct competitors and other market alternatives. It requires a detailed analysis of the competitive landscape across different countries to see how it impacts your pricing strategy. This understanding helps you align your prices with market demand, ensuring they meet the consumer's value perception accurately.

2. Developing an Optimal Pricing Structure:

The primary goal is to create a pricing framework that identifies the best price point, one that customers are willing to pay while still considering the competitive context of each market. This involves detailed research to find a price that balances profitability with customer satisfaction, ensuring you remain a preferred choice among consumers.

3. Gaining Strategic Insights from Competitors:

Part of effective competitor monitoring involves delving into the pricing strategies employed by your B2B competitors. This doesn't just mean knowing their price points but understanding the rationale behind them. It's about seeing the relationship between their pricing strategies and the demand for their products, and how you can leverage this insight to refine your own pricing decisions.

4. Ensuring RRP Compliance:

Another critical aspect is to check the adherence to your Recommended Retail Price (RRP) within the market. This is important to maintain brand integrity and consistency across your distribution channels. Monitoring how closely your retail partners stick to the RRP can highlight areas where pricing strategies may need to be adjusted to protect your market position and margins.

5. Avoiding Price Wars:

Finally, understanding the dynamics of who is following whom in terms of pricing can help you strategize more effectively and avoid destructive price wars. It's essential to know your position within the competitive landscape to make informed decisions that prevent a downward spiral of prices, which can erode profit margins for everyone involved.

Competitor monitoring offers a comprehensive way to navigate the complexities of market pricing. By staying informed and agile, you can adjust your strategies to maintain a competitive edge, ensuring your pricing reflects both value to your customers and sustainable profitability for your business.

SYMSON'S SUPPORT IN COMPETITOR TRACKING

How SYMSON Can Help You in This 12-Step Program

In the competitive landscape of today's market, staying ahead requires not just insight but also foresight. Understanding your competitive environment is crucial, and that's where SYMSON steps in with its comprehensive 12-step program designed to enhance your competitive monitoring capabilities. Here's how we can support your journey to a more competitive future:

1. Comprehensive Market Research: We start by assessing the availability of competitor prices within your product portfolio. This initial step is critical in laying the groundwork for a robust competitive pricing analysis strategy.

2. Advanced Identification Techniques: SYMSON employs sophisticated techniques to help you pinpoint competitor prices accurately. Our approach is designed to navigate through the complexities of the market, ensuring you have the most relevant data at your fingertips.

3. Custom Website and B2B Portal Scraping Demonstrations: Understanding how to gather data efficiently is key. We offer demonstrations on custom websites and B2B portal scraping, showcasing the methodologies that can be employed to extract valuable pricing information from a range of digital sources.

4. Targeted Competitor Scraping: Tailored to your needs, we provide competitor price scraping services for all desired products. Whether you're searching by EAN, keyword, or SKU, we cover a wide array of platforms, including marketplaces and Google Shopping, to bring you comprehensive insights into your competitors' pricing strategies.

Scope Clarifications:

  • Establishing custom scrapers for websites or B2B portals falls beyond our direct services; however, we will provide you with examples to demonstrate how this can be accomplished.

  • It's important to note that the costs associated with scraping per scrape are additional. These costs are detailed in our quote, providing you with a transparent overview of the investment required to access these insights.

At SYMSON, we're committed to providing you with the tools and knowledge necessary to navigate the competitive landscape confidently. Our 12-step program is designed to demystify the process of competitive price monitoring, equipping you with the insights needed to make informed decisions.

By partnering with SYMSON, you're not just accessing data; you're embracing a strategic approach to competitive intelligence that can significantly impact your market position and profitability. Moreover, you can take a look at the Top 10 Competitor Price Monitoring Tools.

How does the Symson Platform assist you in this Process?

  • View competitor and alternative product prices directly within the Symson portal.
  • Adjust your pricing dynamically based on multiple factors.
  • Export pricing data as CSV files or integrate with our API for seamless data management.
  • Implement 'Re-Pricing' strategies tailored to your preferences and competitive context.

Whitepaper Download: Top 10 Smart Pricing Solutions for a Sustainable and Profitable Pricing Process.

REQUIREMENTS TO IMPLEMENT COMPETITOR PRICING

What do you need to Deliver to Conduct Competitive Monitoring with SYMSON?

To effectively operate Competitive Pricing, certain requirements need to be met:

Provide Preferred Data Sources for Price Scraping:

  • Specify URLs for targeted scraping, such as specific websites or B2B login portals. This enables precise extraction of pricing data directly from the sources you consider most relevant.
  • Identify key marketplaces for data scraping, including Bol, Coolblue, and via Shopping APIs from Google and Amazon. Selecting these platforms ensures a comprehensive view of the competitive landscape across various e-commerce channels.
  • Submit criteria for open Google searches, incorporating product names and applying filters like keywords or packages. This approach helps narrow down search results to the most pertinent information, allowing for an efficient and focused analysis of competitor pricing across the web.

Each of these steps is designed to tailor the competitive pricing strategy to your specific market context and competitive environment, ensuring the data collected is both relevant and actionable for your pricing decisions. If you want to check out our competitor pricing solution, you can take a look and unlock the whole package.

Do you want a free demo to try how SYMSON can help your business with margin improvement or pricing management? Do you want to learn more? Schedule a call with a consultant and book a 20 minute brainstorm session!

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HAVE A QUESTION?

Frequently Asked
Questions

What are some competitor price monitoring software?

Here are some robust competitor price monitoring tools.

  • SYMSON
  • Price2Spy
  • Competera
  • Prisync

How to monitor competitor's prices?

To monitor competitor prices, utilize competitor price monitoring tools that automate data collection from various sources, such as websites, marketplaces, and B2B portals. Set up alerts for price changes, analyze pricing trends, and compare against your pricing strategy to adjust and remain competitive in your market.

What is competitive tracking?

Competitive tracking in pricing includes comparing and understanding the products with your competition strategically. Once you conduct a thorough competitor product analysis and understand the alternatives you can present to a different customer group, you can gain more market share.

Also, it includes checking whether the price you sell your products to your channel partners yields sufficient profits for them or not. According to such factors, you can set your competitive prices with proper product positioning to avoid baseless price wars and a race to the bottom.

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