What You Need Out of Your Price Comparison Software

In the world of modern retail, most shoppers prefer to compare product prices before making any final purchases. But price comparison software isn’t just for customers, as there are many benefits that brands and retailers stand to gain from pricing comparisons when building their pricing strategy.

What is Price Comparison Software?

Pricing comparison software are tools that can be used to keep tabs on competitor pricing for products and services. They can provide you with near real-time information on your competitors’ prices that will help you to make data-driven decisions when forming a pricing strategy.

This competitor knowledge is usually updated regularly and focused primarily on direct competitors who are selling similar products to yours.

How is Price Comparison Software Used?

While price comparison software is obviously used to compare prices, there are many other ways a business could use it to their advantage. This tool can provide all kinds of knowledge, including:

  • Finding out which products are in high demand at retailers
  • Monitoring any new products that have entered the market
  • Checking product availability across multiple locations
  • Cataloging how competitors are describing and advertising their products in online stores

All of this and so much more is possible with a well-utilized software.

How exactly the price comparison tools get used is up to your business. There are many possible uses that can be catered directly to your business’ needs.

Why Do You Need Price Comparison Software?

Any company stands to benefit from using price comparison tools. When operating in a vast and competitive market, it’s only smart to know as much about your competition as possible.

Knowing the market prices for your products can be helpful when determining their true value. You need to understand what customers are willing to pay if you wish to increase your own sales. This is especially important when you introduce new products and need to know where your price point should start.

Monitoring competitor prices allows you to understand market trends, better informing your pricing decisions as demand fluctuates up and down.

No matter how you choose to use your pricing software, there are endless benefits that could prove essential to building a successful pricing strategy.

How to Get the Most Out of Your Price Comparison Software

As mentioned already, there’s a multitude of ways you can utilize your price comparison tools, but there are some uses that are non-negotiable from a quality vendor.

Identify Your Direct Competitors

When you’re gathering your competitor insights, it can start to feel like there’s a lot of similar businesses out there who are all doing the same things as you. How can you possibly keep up with every single decision each business is making?

Well, with the right price comparison tool, you can watch any companies that are directly competing against you on a consistent basis. While there may be a lot of similar brands out there, not all of them will be operating in the same location or at the same level as you.

Once you have this information, you can narrow down your comparisons to only competitors who are within your range. This means that your insights will be more accurate and relevant when making your own pricing decisions.

Pinpoint Similar or Competing Products

Once you’ve identified your direct competitors, it only makes sense to take a closer look at where your products overlap. Use your pricing tools to find any products that mimic yours or provide similar services.

How are other companies pricing these products? How are they describing them and their uses? Do they have an easy-to-use website that allows users to do their own comparisons?

This information could prove to be invaluable when advertising for and pricing your own products. Look for areas where your own brand is falling short and could improve in order to compete at the top of the market.

Monitoring competitor prices allows you to understand market trends, better informing your pricing decisions as demand fluctuates up and down.

Competitor Price Changes & Promotions

Pay attention to how often your competitors are altering their prices on competing products. How often is their merchandise on promotion? Is there a discernible pattern to it?

If you keep tabs on a competitor’s pricing for long enough, you will begin to notice a dynamic pricing pattern. This will help you to get ahead of the game and predict the competition’s moves, acting accordingly to stay competitive.

Use your software to run a price comparison. How do your own prices compare to other direct competition?

If you know that another brand will be putting their products on sale, discount yours ahead of them to increase sales and draw the demand toward your own business. Or, price your products consistently on the lower end of your competitor’s price spectrum to keep your prices competitive.

What Should You Look for in Price Comparison Software?

Not just any old price comparison tools will be able to provide your business with all the insights you need.

The right software will be user-friendly and easy to use. The interface should be easy enough to navigate while updating consistently to provide near real-time updates whenever you need.

It should be able to identify and gather information on all of your competitors, whether they have a mix of brick-and-mortar locations, online-only platforms, or sell on sites like Amazon, eBay, or any other online retailers.

Make sure all the data being gathered is accurate and high-quality. You need a tool that can provide you with thorough and reliable information, otherwise you might find yourself making decisions without knowing all the factors.

The goal when using this type of software is to save your business time and money by automating all your pricing research for you. So, the right software will also be easy to integrate into the system your business is already using. These tools should be relieving your workload, not adding to it.

No matter which software you choose or how you use it to your advantage, it’s essential that you use the most accurate competitor information possible when forming your own price strategies.

Alexandria Flores

Alexandria is the Content Writer at Wiser Solutions, a retail analytics provider with an emphasis on data quality, data accuracy, and holistic in-store and online solutions. She holds a BA in Writing from The University of North Texas.

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