Inflation isn’t some word spoken in news transmissions anymore. Now, it’s a reality affecting businesses across the globe, not sparing the e-commerce ones either. Customers are now becoming more price sensitive, with research indicating that 14% of Gen-Z members base their shopping decisions on price, and customer budgets are tightening. On top of that, the rising cost of production is pushing for price hikes.
In this scenario, how do you ensure your business keeps pace with the market changes and appeals to the target audience with just the best prices? The answer is an effective price monitoring and automation game plan. It can help you stay ahead of the competition even with rising inflation in the picture. Read along to understand how you can use price monitoring and automation to stay competitive:
1. Monitor Competitor Pricing
Start by tracking your competitors’ prices. Now don’t go searching for pen and paper. You can do it all digitally without constant manual effort by using promising price monitoring tools like Dealavo. As inflation raises costs, your competitors will also likely revise their pricing. Price monitoring tools will notify you about these changes in real time and help you make price adjustments so you can stay competitive.
2. Automate Price Adjustments
Once you have data regarding your competitors' pricing, move to automation. To change your prices manually each time your competitor lowers or increases their prices is both time-consuming and error-prone. Instead, automate your price adjustment process with dynamic pricing tools. You can set rules to trigger price adjustments, and the software will take care of the rest. You’ll benefit from real-time price adjustments without constant effort.
3. Use Dynamic Pricing to Stay Profitable
Use a dynamic pricing strategy to stay profitable year-round. This is where you get the best of competitor price tracking and automated price adjustments. Dynamic pricing is all about being profitable at different price points, which is really important during inflation. It will let you adjust your prices based on your competitors’ actions, market trends, and demand fluctuations. You’ll be able to get higher profits when demand spikes and keep the inventory moving with lower profits when demand dips.
4. Regularly Monitor Everything
Lastly, keep monitoring your market consistently, as well as trends in consumer behavior and preferences. Inflation can impact both pricing and consumer buying patterns tremendously, so you need to stay informed to make real-time price adjustments and stay competitive.
You can use a Price Monitoring Guide (https://dealavo.com/en/price-monitoring-guide) to structure and refine your strategy for consistently tracking pricing trends in your industry and making adjustments instantaneously to set yourself up for success.
Wrapping Up!
In short, if you want to gain a competitive edge, especially in times when inflation rates aren’t coming to a standstill, you need to use promising price monitoring tools and automation for your benefit. This will help you keep a tab on your competitor's prices and adjust your own without harming your profitability. Ready to keep your business competitive in a changing market? Use top-rated price monitoring and automation tools like Dealavo today and experience the difference it can make!
