Analyzing competitors

The price monitoring software program works online. Metrics are automatically compiled every day to help you see products that need price optimization. A competent approach to price analysis allows companies to make informed decisions about their own pricing strategies, avoid unwanted price wars, and effectively strengthen their market positions.

Tools for analyzing competitors’ prices

Modern technology provides businesses with powerful price analysis tools that automate data collection and processing, providing valuable analytics.

Price monitoring programs

Price monitoring programs play an important role in automating the process of collecting price data from various e-commerce platforms and physical stores. These systems constantly monitor price changes from competitors, making it easier to analyze market dynamics and identify trends.

Key metrics for analyzing competitor pricing

When conducting a price analysis, it is important to consider several key metrics

1. Average product price and deviation from the average price:

This metric provides an overall view of competitor pricing. Analyzing deviations from the average price helps to quickly identify products that are priced significantly different from the market and need to be optimized.

2- Deviation from minimum and maximum price

These indicators help to identify goods whose prices differ significantly from the overall strategy. A low price strategy corresponds to the analysis of the minimum price, while a high price requires the analysis of the maximum price.

3. Price position

This value reflects how competitive the price of your product is compared to similar offers on the market. It includes statistics on minimum, maximum, and average prices, which helps in evaluating the effectiveness of the pricing strategy.

4. Optimal Price Recommendations

Effective price optimization programs offer recommendations based on the data collected, allowing companies to set the most profitable prices to increase sales.

Applying competitor price analysis in practice

Scenario 1: Identifying price leaders

When a company is planning a new product launch, competitor price analysis helps identify industry leaders and understand their pricing strategy.

Scenario 2: Tracking price changes

A company is monitoring the prices of its key product and notices a noticeable price decrease in the main product