By Hemang Nathwani, CEO and Co-Founder at Price Trakker
Many retailers focus on how much to discount when running a promotion, but the bigger question is where to discount. Understanding which products have real margin headroom can make the difference between a profitable campaign and one that only drives revenue on paper.
Every eCommerce manager knows the pressure that comes with major sale events. Competitors drop prices overnight, margins narrow, and decisions are often made reactively. Yet the data needed to plan discounts more strategically is already available. Regular competitor price tracking can reveal which products are under-priced in the market and which are holding firm.
By analysing this information ahead of time, retailers can identify where customers will respond to smaller discounts and where deeper cuts may be necessary. For example, if competitor prices in a product category have remained stable for several weeks, demand is likely to be steady. A modest reduction may be enough to secure conversion without damaging profitability.
Equally, if average prices across the market have been falling, a retailer can decide whether to follow immediately or hold position until stock levels or competitor behaviour justify a change. The key is to use data to make pricing decisions that are proactive, not reactive.
Margin planning is not only about defending profit; it is also about timing. Retailers who track competitor activity can see when others begin testing discounts ahead of major campaigns. This early insight allows them to fine-tune their own promotional calendar, avoiding crowded windows where multiple brands compete for the same customers.
Accurate price intelligence helps commercial teams understand elasticity by product, price band, and season. Over time, this builds a pricing strategy that balances volume and value rather than sacrificing one for the other.
Price Trakker supports retailers in achieving this balance. By tracking millions of daily competitor price points, it helps eCommerce managers identify margin opportunities before promotions begin. Retailers can plan discounts based on evidence rather than guesswork, ensuring every campaign protects profitability while still driving sales.
For more information on competitor price tracking and margin opportunity analysis, visit Price Trakker.
Published 04/11/2025
