This is what happens when you don't monitor your competitors

On many occasions we have commented on the importance of Price to the consumer, based on studies about the main buying, abandoning shopping basket factors, etc. Today we will be a lot more visual, one simple capture of the price evolution of a smartphone will be used to help us understand the price wars that have emerged with the internet. The smartphone Samsung Galaxy S7 Edge is one of the most popular models of the well-known Korean Brand, and as we can see in the image that illustrates this article, there is a daily fight to obtain the most competitive price. The scene changes so often that from just one week to another the game field completely changes.

Not knowing the prices of your competitors can dispose of a good part of the product assortment of a company in just one week, if we look again at the history of prices for the Samsung S7, the ecommerce Coolmod is out of the market with a price of 767.95€, while the cheapest competitor is Alternate, who is offering the product at 599€, 168.95€ cheaper. What selling volume will Coolmod gain with this price? The answer is simple, almost 0. If we extend this situation to the rest of the range, not controlling the market prices could result in a disaster for a company in the long run.

With a growing trend in dynamic prices, it is more and more important to use technology tools that are capable of adapting product prices to their optimal price.