Every year, summer sales, winter sales and Black Friday account for a disproportionate share of many online retailers' annual revenue — and equally disproportionate pricing pressure. Lowering prices to stay visible without losing most of your margin: here is how to approach these periods methodically rather than by instinct.
Why sales periods are a pricing trap
During these few weeks, competitors may change their prices five or ten times as often as during the rest of the year. Monitoring that was sufficient before becomes largely inadequate: a price recorded on Monday may be completely outdated by Wednesday.
Before the sales: establish your reference points
Set your minimum margins in advance
The worst decisions are made in a rush, during a sale, when a competitor has just cut its price by 30%. Before the period begins, decide how low you are prepared to go for each product — and stick to that limit whatever happens.
Identify competitors' patterns from previous years
Most retailers repeat fairly similar patterns from one year to the next: the same featured categories and comparable discounts. If you kept last year's price history, it provides a valuable basis for anticipating their moves.
During the sales: monitor, do not improvise
Check daily, not weekly
During these high-stakes weeks, daily monitoring — or even several checks a day for your most strategic products — often makes the difference between making the most of the period and simply enduring it.
Distinguish a promotional claim from a real price drop
A crossed-out price far above the usual price before the sale does not represent genuine competition — it is a promotional claim. Always compare the actual price charged, rather than the discount percentage shown beside it.
After the sales: measure what really worked
Once the sales are over, compare your sales volumes, actual margins and competitors' prices during the period. This review, rather than your instinct at the time, should guide your decisions next year.
The same signs of price-related lost sales apply all year round — we explain them in our article on the warning signs of a pricing problem.
With Comparzeo, monitoring frequency can be increased temporarily during these sensitive periods, without extra work on your part — free 14-day trial.