Competitor price parser for business optimization

The choice in favor of one or another online store or service site for the modern shopper is a combination of a number of factors:

• Competitive prices - most important to 77% of shoppers surveyed.
• Free shipping - 71%.
• Feedback from customers who have made multiple repeat purchases - 54%.
• The comfort of shopping (site usability, good service) - 49%.
• Availability of special offers - 43%.
• Availability of a comfortable loyalty program - top priority for 37% of customers.

When analyzing this research should also make adjustments to take into account the difference between consumers in different countries. However, even without considering the solvency of the customer, it is clear that setting a competitive price is the most important task for business optimization in 2022!

An effective tool for this is the Helecos competitor price parser.

How to optimize your business with the price parser?

Judging from what we can see in the cases we have already implemented, the competitive price is the factor that allows you to talk about maximum sales! Regardless of the number of items in your store, Helecos algorithms will gather all the necessary information from the online market to correctly set the price for each item:

1. The number of sellers (competitors) for your product online.
2. The difference in cost between yours and your competitors' stated cost.
3. The average market price.
4. RRP - recommended price for business optimization.

The analysis of competitor prices with the help of the automated parser is a key step on the way to maximization of conversions

This is true, but in addition to this procedure it is also important to monitor other indicators which influence the percentage of conversions (number of purchases):

• The adaptability of the site for mobile devices and the success of design solutions.
• The tools used to find product positions on the site, the uniqueness of the content used (photos/pictures, text descriptions of products, the presence of social networks and the activity of updating them).
• The customer's path from selection to purchase. Here the simplicity of the shopping cart, payment procedure, communication with the representative of the market, etc. is taken into account.
• Availability of promotional offers, frequency of discount updates, loyalty programs.
• Active work with customer feedback and as such their presence on the site.

All this, led by a competitive pricing policy, will allow you to develop a unique selling proposition for your customer and achieve maximum business optimization.

As for monitoring your competitors' prices, you can and should automate it as much as possible! After all, the use of the specialized application Helecos will save you hundreds of hours on receiving and properly processing the information.

Which of your competitors are subject to price parsers, and which of them can be ignored for maximum efficiency?

It is important to understand that in any business there are direct and indirect competitors. But should all of them be monitored?

Practical Notes:

• Take into account the type of competitor! For example, you are in the perfume business and have chosen to track the Chanel perfume brand. You can parse prices exclusively for this brand or add a competing manufacturer to the analysis (Dior, for example).
• The "promotion" of the business. If your store occupies a leading position in the market, you should prioritize your level markets in competitive analysis. Smaller stores may be ignored.
• Take into account the class of goods that the competing store operates with. The parser should be involved in relation to direct and indirect competitors. And while the former sells identical products to yours, the indirect ones sell similar products (often even in a different price category).

What exactly do you get as a result of using the Price Parser and how it will help you automate your business?

The results of the automated parser are used to create a summary table with metrics on the collected prices of your competitors. A unique pricing strategy is created on the basis of these tables. Competent optimization of your store consists of the following steps:

• Correct setting of prices for the products sold.
• Objective evaluation of supply and demand throughout the market.
• Increase in sales and subsequently business profits.
• Forecasting of sales.
• Buying products in the right quantities, taking into account the intensity of sales in a certain period of time.
• Timely sale of residual goods from warehouses, which will allow investing in a new turnover and earn more.
• Improvement of assortment in comparison with competitors, thereby increasing the attractiveness of your store for the consumer.
• Getting to a more comfortable terms of trade with suppliers, finding new partners.
• Getting to know the market leaders and their policies.
• Formation of successful marketing strategy to promote his brand.

Goods margin, business costs and competition level - these are three key factors, consideration of which is obligatory on the way to the correct pricing strategy.

Competitive price is not a specific number, but rather a price range, within which a product can compete on the market.

Helecos lists 5 basic competitive pricing strategies that may be relevant to optimize your business based on price parsing:

1. Penetration Strategy. Example: You have opened a new shoe store and want to sell your product at prices below the market average. Your goal is to "steal" a customer away from a competitor and make a statement about yourself. The turnover of the shoe store will grow, but your audience will consist only of those customers who are most price sensitive.
2. Minimization of the price list. This policy implies a reduction in price tags due to high sales/production. The price formula in this case is as follows: 3:1:1, where 3 is the purchase price of the product; 1 tax charges; 1 profit. The result is the maximum flow of customers and high turnover.
3. Advertised prices - relevant for owners of large online stores. Example: If you sell perfume water for 10 c.u. You get a profit of 5 c.u. If the cost of goods will be reduced to $ 9, you will receive profit from each unit at $ 1 less. However, the volume of sales with this manipulation can double!
   • regular prices: 5 * 100 (number of goods sold) = $500.
   • Advertising prices: 4 * 200 (doubled turnover) = $800.
4. Mid-market pricing policy. This policy requires daily tracking of competitors to obtain accurate information. The price tag for their goods is set at the level of the market average +- 10%. This is one of the most popular strategies, which is what makes automatic price monitoring systems (parsers) so popular.
5. The strategy of premium prices. The prices here are set on the basis of the value and popularity of the brand and the quality of the product/service. The competition here is subsequently formed only between the same premium companies.

The relevance of the competitor price parser is noted at all stages of trading and purchasing!

Helecos is a software solution for maximum optimization of your business by means of competent pricing taking into account all market peculiarities and price strategies chosen by your competitors!