Guide on how to increase your revenue by the use of a price comparison tool
Today 94% of consumers are comparing prices online before making a purchase. This trend among the consumers has grown along with the development of e-commerce. It has never been easier to compare prices online, than it is today.
To ensure your competitiveness in regards to this new trend among the consumers, it is crucial to know the conditions of the market. You have the possibility to become even wiser on your own competitive situation by applying a price comparison software. The purpose of this blog is to provide you with an useful guide, showing what a price comparison tool is and how it can increase your revenue.
What is a price comparison tool?
A price comparison tool is a software, which is scraping data online to find potential retailers in the market. Often data such as different price positions, product descriptions, stock status’, rating & reviews are scraped and collected by the pricing software.
It is possible for retailers to use the collected data to monitor their competitive situation. Moreover, a price comparison software can be applied as an analytical tool, where you are able to get an overview of your competitors price positions. This ensures that you have the needed data to decide on the most optimal price for your products.
How can you as a purchasing manager get the most out of a price comparison tool?
In the position as a purchasing manager, it is crucial to apply a price comparison software to ensure that you will include the most optimal products in your assortment. You have the possibility to monitor the products your competitors are selling and are able to analyze the popularity among these. Thereby, you have an overview of the most popular products sold in the market.
Additionally, you can based on data from different price positions determine whether or not, you find it beneficial to buy an item and include it in your assortment. This decision is depending on your competitiveness and your possibility to compete against the current price level in the market. This option makes it possible for a purchasing manager to consider the market conditions, before making the final decision on whether to buy the new item or not.
Moreover, if you are the owner of a brand you can apply a price comparison software to monitor the retailers who are selling your products. Thereby, you get an overview of the price position of your product and can analyze if the determined price is beneficial for the value of your brand.
How can you as a marketing manager get the most out of a price comparison tool?
As a marketing manager it is crucial to know the market conditions and analyze, which products you are competitive on.
By the use of a price comparison tool you can optimize your marketing budget. As mentioned, you get an overview of your competitors prices and can thereby easier place your marketing expenses effectively. You get insight into which products you should prioritize to use your marketing expenses on, since you can monitor the competitiveness of your products.
It is also crucial to optimize your product price, as Google Shopping favors the lowest price position. You can apply a price comparison tool to adjust your prices and thereby achieve the most optimal position at Google Shopping.
Expansion to new markets
Are you considering expanding your business into new markets, then you can apply a price comparison software to improve your decision process.
You are able to examine your competitive situation in the new market before deciding whether or not it is beneficial to expand your business. This ensures that you are aware of the price positions in the new market and at the same time you know the number of competitors as well. By applying a pricing tool you are well prepared to enter into new areas and can potentially increase your revenue as well.
It is often easier to expand your business, if you have conducted a thorough and well-considered market analysis. A price comparison tool can help you in the right direction, and it ensures that you do not make a hasty decision.
Implement a price comparison tool
It is crucial for your firm to prioritize the implementation of a price comparison software, as it makes your business more efficient and increases your revenue.
At PriceShape we offer a simple and user-friendly software, which provides you with valuable features. These can be applied by all types of professionals. A price comparison software is a helpful tool you can apply to optimize your business activities. Moreover, it is possible to apply dynamic pricing to ensure that your prices are automatically adjusted based on the conditions in the market. Thereby, you can strengthen your competitive position in the market and achieve a higher result.