Boost Your Sales With Price Monitoring and Repricing Tools

Written by Naomi Botting | Feb 1, 2023, 11:00:00 PM

Every brand, manufacturer, and retailer knows that the price you choose plays an important role in gaining a competitive edge. Your prices are not only defined according to your desired margin, product quality, and brand image, but they must also take into account current market trends and the prices set by your competitors. "Knowledge is power." It's essential to know which prices are currently being charged in your market. It will allow you to evolve as your market evolves, observe rising and falling trends, better understand your customers, and keep an eye on the competition. This way, you can efficiently anticipate any changes and adapt as necessary. Carrying out this rigorous analysis can be long and tedious if it is done manually. That's why you should use a price intelligence tool for price monitoring and repricing, allowing you to save both precious time and money! Retain a competitive edge on different marketing channels and marketplaces.

How do price monitoring tools work?

Using an external partner, price monitoring tools work by automatically retrieving product data from competitors and then comparing this data with your own. Firstly, you must choose the scope of the data that you want to monitor. Some service providers will offer to do this and then will carry out a market and competitor analysis for you. Then it’s up to you to decide if you want to carry out the analysis on each one of your products. You also have the choice, for example, to opt for an analysis of a certain brand or product range if your catalog has many references. Once the specific scope of data has been chosen, the service provider will begin collecting the data. Prices can be analyzed directly on your competitors' websites, on marketplaces, and also on price comparison sites. The tool matches the products from your catalog with the products that your selected competitors are selling. The comparison is mostly based on Artificial Intelligence algorithms that use unique product codes (GTIN, EAN), titles, brands, and item specifics, as well as image recognition. Examples of important criteria to consider when choosing your monitoring tools:

Where is the data sourced from? Competitor sites, marketplaces, etc.
Is it easy to set up and transfer information to your tools? (e.g BI)
Are market analysis and competitor analysis included?
What kind of data is collected? Do you only need to know the price? Or do you also need to know additional information such as delivery costs and delivery times, fixed or variable costs, the Buy Box, etc?
What is the dashboard like, and how detailed is it? Can reports and analyses be shared easily?
Is the platform user-friendly and accessible?
What is their tariff? Most of the time you will pay a monthly subscription.
Which automated functionalities are on offer? Some tools offer price recommendations and automatic repricing based on criteria such as market price changes, your margin, the Buy Box, etc.

How can I use this price monitoring data?

Once the data about your competitors, a list of common references, price differences, price fluctuations over time, etc. have been exported, you will have a wealth of valuable information about your market and your competitors at your disposition. With this data, you can:

Keep up to date with what’s new on the market, seasonal variations, etc.
Find out which products are missing from your range
Set the right launch price for your new products
Manage and sell your stock in an intelligent way by modifying your prices and taking into account the number of references in your catalog.
Reduce your prices to remain competitive over a set period (e.g. sales events) or all year round, and set up the ideal promotion for each product.
Know when to increase your prices on products that are selling at a price that is too low in comparison to others on the market.
Attract the attention of your customers by putting psychological price rounding and pricing rules in place.
Make certain products stand out by setting up discounts on their call prices.

Today, e-commerce is highly developed and competitive, meaning it is increasingly important for retailers to monitor their markets and their various competitors. For manufacturers, protecting their brand online is a key issue: it is essential to keep control over the notoriety of their brand. These two challenges can be easily tackled with a high-quality price monitoring tool.
Ivan Ramirez — CPO - Lengow

You can go even further by customizing the prices on your product data sheets, depending on your acquisition channels. For example, you can:

Reduce your prices in marketplaces where the competition is too strong and increase them in those where you hold a dominant position.
Win and lock in the famous Amazon Buy Box whilst retaining the highest possible margin, with immediate notifications as soon as a competitor changes their prices on products that are similar to yours.
Exclude certain products from price comparison and retargeting campaigns if it wouldn’t be profitable to include them.
Boost your auctions more intelligently on Google Ads with Custom Labels. You can subdivide your product listings according to the criteria of your choice (price, promotions, shipping, product category), create specific campaigns, and adjust your auctions and displayed prices, which in turn will affect your margin.

These actions would be even more impactful if you could react instantly. Fortunately, it is now possible to do so with platforms like Lengow, thanks to the implementation of automatic rules.

Using Lengow

Lengow has its own price intelligence tool Netrivals so that you can adapt the prices in your product data sheets, in real-time, several times a day. To do this, we import the data collected from the pricing solution into your catalog, using our Additional Sources feature. For example, this can be done using a CSV file via an FTP server. Once the previous steps are completed, it is important to observe the impact that these price adjustments are having on your sales, which can be done using Lengow’s dashboards to view the distribution results on the different channels and marketplaces you use. The impact can also be monitored with the Lengow connector for Google Analytics , which retrieves statistical data from your e-commerce site.

Discover the benefits of an efficient repricing strategy!

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