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PRICE LIST

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Glossary

Definition

Price monitoring is the process of collecting competitors’ prices for a sample of products, either in physical stores or online. It can be done manually (through field surveys conducted by researchers) or automatically (via web scraping, APIs, or data panels). Price monitoring is the first step in any price monitoring strategy.

Why it's important

  • Know your market position: without price data, it’s impossible to know whether your key products are competitive or out of step with the market.
  • Identifying opportunities: Regular monitoring reveals areas where you can raise your prices (more expensive competitors) or need to adjust them (aggressive competitors).
  • Feeding data into analytical tools: The data feeds into your pricing analytics tools, price indexes, and strategic dashboards.

A concrete example

A home improvement retailer conducts weekly price surveys on 300 SKUs (tools, paint, hardware) at five competing stores within its catchment area. Surveyors record the prices displayed on the shelves as well as the promotions at the front of the aisles. The data is centralized in a dashboard that automatically calculates price differences on a product-by-product basis. The pricing team thus identifies 40 products for which it is 10% more expensive than the competition and decides to adjust the prices.

How to make them

Manual data collection: Surveyors visit competing stores with a list of products to record. This method is reliable but costly and time-consuming. It is useful for brick-and-mortar stores or products not sold online.

Automated data collection: Bots scrape competing e-commerce sites to gather prices, inventory levels, and promotions. This method is fast, comprehensive, and cost-effective. It requires rigorous product matching.

Data panels: Some providers aggregate data from the databases of multiple retailers and provide consolidated price reports. This method is accurate but limited to partner retailers.

Common Mistakes

  • Irregular price checks: Checking prices every three months isn’t enough in e-commerce, where prices change daily. Adjust the frequency to match the pace of the market.
  • Non-representative sample: Selecting 20 random products is meaningless. Focus on your KPIs and high-turnover products.
  • Ignoring promotions: Comparing "regular" prices without taking current promotions into account gives a distorted view of the competitive landscape.

Learn more

  • Research & Data: Competitor price tracking to automate your data collection and improve reliability.
  • Solutions: Product matching and linking to ensure you're comparing the right products.
  • Tip: Use strategic pricing to define your sample set and structure your market monitoring.
  • Resources: See our pricing FAQ for more questions about competitive intelligence.

Mini FAQ

Price data collection refers to the act of gathering data. Price monitoring refers to the overall process: data collection, analysis, tracking over time, and alerts.

Between 3 and 5 direct competitors are usually sufficient. Beyond that, the workload increases without providing any significant additional information.

Yes, in e-commerce. The final price paid by the customer includes shipping costs. Comparing prices that exclude shipping costs distorts the actual ranking.