It's been a couple of weeks since we've written a blog post for you at Competitor Monitor, and the main reason is that we've been pretty hectic! We are in the process of making some really exciting developments, and as you can imagine there is a lot of work and testing involved. If you want to be kept updated on what we do, pop your email address into the 'Special Offers' box on our homepage, you'll also get sent exclusive discounts.
Anyway, its about time we imparted some ecommerce knowledge. One area a lot of etailers slip up and end up bleeding money is by not properly analysing their own products. We run a business whereby we focus on monitoring competitors products, but you should really know your own like the back of your hand first of all. If you don't know your products well enough, then you can't be confident that you're setting your pricing effectively. Take a look at what each item costs you and the margin you currently make... is it what you thought it would be?
Also, you need to know your customers well. If you are setting prices without much consideration as to whether your target audience would pay them without much hesitation, then you will be making life harder for yourself. If you monitor competitor pricing with a tool like we offer, then you have a very good idea of where you stand in the market, which is extremely valuable.
Now you might think we are crazy for saying this since we sell a competitor price monitoring tool, but you shouldn't just go off their prices. Of course it is essential that you know their prices at all times, but you can't just lower each of yours as soon as they lower theirs. You have to factor in everything mentioned above, as well as your overheads.