If you are not moving fast in today’s market scenario, you will be left behind in competition. This is only possible when you know what the competition is doing in terms of releasing new products, following attractive pricing strategies, and expanding into your market segments, today. If you are unaware of their accurate pricing strategies, it is not easy to maintain or grow your market.
Having the right competitive pricing intelligence can make you aware of the market pricing and the impact it has on your business. This can be done by using modern data mining tools and accordingly optimizing the pricing or purchasing strategies in comparison to the competition.
There are 3 key advantages with competitive pricing intelligence. They optimize your choice of products, plan your pricing and help in understanding your business strengths & weaknesses.
Optimize Your Choice of Products
A competitive pricing intelligence can show unique product information for your products in comparison to your competitors. According to the trend defined by the pricing intelligence, you can then improve your products or change the list of your products all together.
Plan Your Pricing
If you learn from competitive pricing intelligence that your competition is always undercutting on pricing, you know you have a strong competition in that area. You can then either work on your pricing or increase your value proposition accordingly. But if your pricing is the same after the prices of the competitors, then you know you can charge accordingly. So, only after you have analyzed this information, should you actually undercut your competitors else you might unnecessarily be reducing your cost and your profits as well.
Understand your Strengths and Weaknesses
When you have competitive pricing intelligence data for your business, it helps you to understand your business’s strengths and weaknesses, its opportunities, and threats. It may be that your pricing is better than your competitor or your product is of better quality than them. Whatever it is, you will learn your key areas which bring you more customers and which don’t. Then you can strategize your business plans accordingly.