In the buzzing world of online shopping, keeping track of what your competitors are selling and what they are charging is important. Competitive price analysis not only defines your pricing position in the market but also ensures that your pricing strategy stays ahead of all the competitors. An effective competitive price analysis gives a cutting edge to businesses as the customers always search for the most reasonable option. But how to perform a competitive price analysis? Here’s the step-by-step guide using the Dealavo tool.

Step 1: Identify key competitors

The foundational step of the competitive price analysis is identifying the key competitors. Search your direct and indirect competitors. Direct competitors refer to the ones who are offering the same products or services as yours, and the indirect competitors are the ones who are selling the alternatives of your products or services. 

You can use market research tools like Google Trends to find the competitors. Moreover, you can also track the social media insights to see who is leading your industry at this moment. Dealavo provides comprehensive competitor identification features that enable you to discover direct and indirect competitors efficiently.

Step 2: Collect pricing data 

Once you have identified your competitors, it’s time to collect the pricing information of their products or services. This data will not only help you in setting competitive prices of your “Price2spy” is a tool that analyses and collects the data by an automated process. Some Price2spy alternatives are Competera, Wiser, and Dealavo which can be used for collecting pricing data efficiently. Dealavo is a powerful tool for collecting pricing data efficiently. It automates the process, gathering data from multiple sources, so you can stay up-to-date with market pricing trends and competitor movements.

Step 3: Analyse pricing strategies

After the collection of pricing data, the step of analyzing pricing strategies comes. In this step, you need to look at the pricing strategies of the competitors. This means that you need to monitor the competitor’s discount deals, bundles, and dynamic pricing options. 

Identify their unique pricing strategies, such as getting to know whether most of your competitors are offering frequent discounted deals or they work on the model of premium pricing. Dealavo’s advanced analytics provide insights into these strategies, allowing you to understand which approaches are more successful in your industry and how you can differentiate your offerings.

Step 4: Compare with your pricing

The following step is a comparative analysis of competitors’ pricing with your pricing. This means that after analyzing the pricing and strategies of the competitors, compare it with your pricing, see where you stand, and identify opportunities for adjustments. 

Dealavo’s comparative analysis tools help you identify areas where you might need to tweak prices to remain competitive. Additionally, ensure that your prices align with the value you are offering to customers.

Step 5: Implementation of data 

Lastly, it’s time to implement all the gathered data on your online store. Start with making changes in the basic pricing of your products. Later, work on how often you should offer discount offers, bundle options, and new promotions. After doing all the implementations, you still need to review and update your pricing to ensure it remains competitive and continues to attract and retain customers. 

Competitive price analysis has the potential to take your business to new heights, but you need to pay attention and invest time to achieve the desired results. With Dealavo’s comprehensive pricing analysis and optimization tools, you can efficiently navigate the competitive landscape, ensuring your pricing strategy is both effective and profitable.