woman using a tablet to shop onlineThanks to the Internet, retail businesses of all sizes have a better chance not only at surviving, but at thriving in today’s marketplace. With such improvements in doing business comes tighter competition. If you can reach your customers more quickly and easily, so can your competitors.

One of the most valuable ways of staying relevant in the marketplace, particularly if you are an online retail business, is to monitor competitor prices. Pricemanager.com shares some reasons to track how much your competitors are charging for the same or similar products.

Customers check for prices before buying

There is a good chance other online and brick-and-mortar stores are carrying some products similar to yours. Customers decide based on prevailing market prices, among other factors. One advantage of online shopping for customers is they can flip from one store to another in a few seconds. You don’t want to be passed up just because the next store offers your product for a few cents less.

Your competitors are checking

Your competitors track prices every day for two reasons: to make sure they are not selling at the highest prices or see if someone is not following the Minimum Advertised Price (MAP) for every item. You should do the same.

A day late is still too late

When you constantly monitor how much your goods are going for, you can react instantly to changes. If you don’t monitor for a few days and find out too late that the prices of a product have dropped significantly in those days, you’d have lost a lot to your competition.

You can’t do market research without monitoring prices

You need to know the latest prices of your goods if you want to do thorough market research. Correct data can help you yield the right results.

Monitoring the prices of goods is an important part of a retail strategy. If you ignore it, then you might as well hand over your slice of the pie to your competitors.