Auto racing is a highly competitive sport where success depends on the driver’s ability to pay close attention to their rivals and make minor adjustments based on their positions.
Can you imagine driving a racecar without ever looking out your window?
As a good driver must look out their window, eCommerce companies must pay close attention to their competitors. Success often depends on the retailer’s ability to make calculated changes to their pricing strategy based on their rivals’ prices.
Without competitor price monitoring, operating a successful eCommerce company can be as difficult as driving a racecar with no windows. Companies like Hypersonix are working to make competitor price monitoring as powerful and effective as possible.
Key Takeaways:
- Competitor price monitoring involves automatically tracking competitors’ pricing in your industry.
- Especially at scale, manual monitoring is prohibitively time-consuming, which is why software is essential.
- Hypersonix solves these difficulties for eCommerce companies through automation and AI.
What is Competitor Price Monitoring?
(And why is it Important?)
Competitor price monitoring is the process of tracking and analyzing the prices of goods and services offered by competing businesses in your industry. By monitoring these prices, eCommerce companies can gain valuable insights into the pricing strategies that work for other companies and make informed decisions about their own pricing strategies.
In a traditional brick-and-mortar retail space, businesses only competed with their geographical neighbors. Following the advent of eCommerce, that playing field has expanded to encompass millions of competitors – at least 2.5 million in the United States alone.
Competitor price monitoring takes advantage of the wealth of knowledge available online to make educated pricing decisions. This allows eCommerce companies to stay competitive by ensuring their prices are not too high or too low compared to their competitors.
Besides monitoring competitor prices, competitor price monitoring can help retailers and etailers identify market trends and adjust accordingly. For example, when a particular product is in high demand, competitor price monitoring gives companies the data to know when to increase their prices to maximize profits. When a product is not selling well, competitor price monitoring can help companies to decide when to lower their prices to attract more customers.
The Challenges of Competitor Price Monitoring
The idea of competitor price monitoring is nothing new. Ever since humanity invented the concept of commerce, sellers have been in competition with each other. With advancements in communications technology and how interconnected the world has grown, that competition has expanded to include local advertisers, national brands, and now online companies from across the globe.
Manual Price Monitoring
Before the advent of automated competitor price monitoring tools, businesses had to monitor their competitors’ prices manually. This time-consuming process involved manually searching for and recording the prices of competitors’ products. With businesses able to change prices at will, keeping up with the latest prices requires an unsustainable amount of manual effort.
The Consequences of Not Monitoring Prices
However, the consequences of not monitoring your competitors’ prices can be severe. If a business is unaware of their competitors’ prices, they risk pricing their products too high and missing out on sales or too low and missing out on profit. Especially in the hyper-competitive world of eCommerce, competitor price monitoring is not an option – it’s essential.
At the end of the day, competitor price monitoring is too information-dense and labor-intensive to manage manually (especially at scale) but too important to neglect. That leaves businesses with an obvious solution: find a non-manual way to monitor competitors’ prices.
How Hypersonix Solves the Problem
Hypersonix’s AI-powered engine solves the problem of manual competitor price monitoring by tracking competitors in real-time. The engine uses machine-learning algorithms to relay your competitors’ current prices and recommend opportunities for you to adjust your own prices.
Why Hypersonix?
There are many reasons to use Hypersonix ProfitGPT, but first and foremost is it saves time and resources by automating the most manual, tedious parts of competitor price monitoring. Imagine your workweek if you had to check every price of every competitor every day. Hypersonix takes over that task for you so you can focus on other critical aspects of your operation.
Hypersonix is especially powerful because it gives businesses AI-driven insights into their competitors’ pricing strategies. This allows them to make data-driven decisions and adjust their prices to stay competitive in the current market.
Additionally, every successful business must consider profitability. Hypersonix gives businesses the information they need to maximize their profits. By keeping a close eye on your competitors, competitor price monitoring software can increase your sales and revenue through data-driven insights.
Next Steps
One of the most important aspects of eCommerce competition is finding the sweet spot that maximizes profit while remaining price-competitive.
That would be easy if the marketplace were static, but in real life, this sweet spot is perpetually on the move – that’s where price monitoring software comes into the picture. Hypersonix uses 11 AI engines to analyze competitor prices to find trends and make recommendations that would be difficult for human users to find on their own.
Just like a racecar driver needs a window, an eCommerce company needs competitor price monitoring, and Hypersonix’s ProfitGPT can help you stay ahead of the competition.
Request a demo of Hypersonix’s powerful software today.
