Your price analysis begins with considering how your product market will react to the prices you offer. Thinking about how buyers will react to alternative prices is always a tricky process: on the one hand, if the price is too high, you won’t be able to increase sales, and on the other, if the price is too low, potential buyers may become wary and concerned about the quality of the product.
Take a closer look at the market: The first thing you need ghana telegram number database to know is where you are. What products have similar features to yours? Who offers alternative products that can offer the same as yours? How much do they cost?
Price index
Having identified competitors in the market, perform some calculations and determine the average market price of the product in question. To calculate the price index, you can use the following formula:
Competitor's price / Your price x 100
This formula is used to look at prices in more depth and detail. For example, it may indicate differences in product procurement. Perhaps your competitor is getting better prices from suppliers, allowing them to offer lower prices. Analyzing where your prices are better or worse than your competitors will allow you to adjust your prices accordingly where possible.
Historical price data
Monitoring competitors' prices is a critical process, although it can be time-consuming. However, by gradually collecting information, you will be able to identify patterns and trends in competitors' behavior. This information can then be used to inform your loss-free pricing strategy.