How to Leverage Competitive Pricing Intelligence to Stay Ahead of Tariffs and Market Volatility
Introduction: Why Competitive Pricing Intelligence Matters in an Uncertain Market
For brands and retailers in the durable goods sector—including consumer electronics, major and small appliances, and office equipment—pricing decisions are more complex than ever. With ongoing tariffs on key components, fluctuating supply chain costs, and evolving consumer demand, companies must react quickly to maintain profitability and market share.
Unlike fast-moving consumer packaged goods, durable products have longer purchase cycles, higher price points, and greater sensitivity to external cost pressures. As a result, competitive pricing intelligence is critical for brands and retailers to anticipate tariff-driven price shifts and make proactive, data-driven decisions.
In this article, we’ll break down five key pricing signals to monitor, the actions to take based on the data, and who in your organization should act on these insights to stay ahead in a volatile market.
What Pricing Data Can Tell You—and What to Do About It
1. Sudden Price Increases in Key Product Categories
What to Watch:
- Sharp price jumps across specific categories or SKUs that have import-reliant components or raw materials, such as appliances, consumer electronics, and office equipment.
- Competitor pricing adjustments occur before a new tariff goes into effect.
What to Do:
- Act preemptively: If competitors are raising prices in anticipation of a tariff, review supplier agreements and adjust inventory orders before costs escalate.
- Assess component-level exposure: Many durable goods rely on imported semiconductors, steel, aluminum, and plastic resins—factor these costs into pricing decisions.
- Strategically time price adjustments: Instead of sudden spikes, test phased increases or bundling strategies to maintain sales volume.
- Understanding different promotion types, including bundles, can give you insights into various pricing strategies outside of hard-shelf price cuts.
Who Should Act on This?
- Product Managers & Pricing Analysts → Monitor real-time competitor pricing fluctuations.
- Competitive Intelligence Teams → Adjust pricing and promotional plans based on cost forecasts.
- Supply Chain & Sales Teams → Negotiate contracts before tariffs impact costs.
2. Competitor Promotional Activity as a Cost-Absorption Strategy
What to Watch:
- More aggressive discounting on high-margin durable goods (e.g., home appliances, large electronics) indicating competitors are absorbing costs rather than passing them to consumers.
- Fewer promotions or shallower discounts signaling that competitors are struggling with rising costs and protecting their margins.
What to Do:
- Re-evaluate promotions: If competitors are still discounting despite rising costs, determine if matching these promotions is sustainable.
- Monitor elasticity trends: Durable goods have longer purchase cycles. For example, major appliances remain in the brick-and-mortar channel for 3 years on average. Track how price-sensitive customers are before adjusting your strategy.
- Shift promotional messaging: Instead of discounting deeply, emphasize warranty extensions, retailer loyalty programs with key retailers, financing options, or value-added services to maintain demand.
Who Should Act on This?
- Sales Team & Buyers → Track competitor pricing trends and adjust strategies to balance volume and margins. Work with trade partners to stay competitive without unnecessary discounting.
- Trade & Promotions Managers → Optimize promotional spend based on competitive behavior.
- Channel Marketing & Brand Teams → Adjust campaign and promotional plans to compete without eroding margin.
3. Retailer-Supplier Price Divergences
What to Watch:
- If retailer prices rise faster than manufacturer’s suggested retail prices (MSRP), it may indicate that retailers are anticipating higher costs or tightening margins.
- If some retailers hold prices steady while others increase them, there may be an opportunity to gain market share with competitive pricing.
What to Do:
- Ensure channel-wide price consistency: If some retailers are holding prices steady while others increase them, re-align pricing strategy to prevent undercutting.
- Negotiate with key retail partners: Ensure pricing integrity across wholesale and DTC channels to prevent profit dilution.
- Monitor price floors: If certain retailers undercut MAP pricing, reevaluate distribution agreements to maintain value perception.
Who Should Act on This?
- Retail Buyers & Category Managers → Identify price discrepancies across retail partners.
- Sales & Key Account Managers (for manufacturers/brands) → Work with retailers to maintain price consistency.
- Product Managers → Adjust forecasts based on wholesale vs. retail pricing trends
4. Channel-Based Price Variability
What to Watch:
- Price differences between online marketplaces and in-store retail.
- Retailers adjusting pricing inconsistently across regions or fulfillment centers.
What to Do:
- Adjust direct-to-consumer (DTC) pricing based on marketplace trends: If resellers undercut brand-owned channels, adjust pricing or offer exclusive bundles to drive DTC sales.
- Optimize omnichannel strategy: Track SKU inventory and strategically shift inventory to maximize profitability in higher-margin markets.
- Enforce MAP pricing: For durable goods brands, protecting value perception is critical—monitor and address unauthorized price cutting.
Who Should Act on This?
- Retail Buyers & Category Managers → Identify which brands or products are experiencing price discrepancies across retailers.
- Sales & Key Account Managers (for manufacturers/brands) → Work with retailers to ensure consistent pricing and prevent channel conflict.
- Pricing Strategy & Analyst Teams → Adjust regional pricing strategies based on demand elasticity.
- GTM and Sales Ops Teams → Enforcing and maintaining pricing strategies.
5. Consumer Price Elasticity and Competitive Response
What to Watch:
- If competitors raise prices but maintains market share, customers may be less price-sensitive, giving you room to adjust.
- If a competitor raises prices and market share drops, the market may be hitting a price ceiling.
What To Do:
- Test gradual price increases: Instead of sharp hikes, experiment with incremental adjustments and monitor conversion rates.
- Monitor brand perception: If competitors lose market share after raising prices, position yourself as the best-value alternative.
Who Should Act on This?
- Pricing Teams → Determine optimal price points based on consumer demand.
- Customer Insights Teams → Understand how price changes impact buying decisions.
- Sales & Product Managers (for manufacturers/brands) → Collaborate and adapt sales strategies based on consumer price sensitivity.
How OpenBrand’s Competitive Pricing Intelligence Can Help
At OpenBrand, our Competitive Intelligence product provides:
✔ Daily and same-day SKU-level price tracking across online and in-store channels
✔ Promotional activity insights to understand cost-absorption trends
✔ Competitor pricing benchmarks to spot industry-wide shifts
✔ Key SKU availability to monitor inventory by region and retailer
✔ Multi-level pricing insights to see pricing, inventory, and promotional details from a brand-to-SKU level
Pricing data provides a real-time view of market movements, competitive strategies, and emerging trends. To take it one step further, we recommend combining competitive intelligence with market measurement to give you a holistic view. Our customers use Market Measurement to monitor share, track competitive shifts, and uncover how their customers behave and why
By layering these insights, businesses can anticipate pricing thresholds, optimize promotions, and adjust inventory strategies based on market dynamics and consumer behavior. This holistic approach allows brands to make proactive, not reactive, decisions—aligning pricing strategies with actual demand to maximize revenue and market share.
Want to see how OpenBrand can help you track daily price movements and outmaneuver the competition? Request a demo today.
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