Price Position Analysis
  • Price Position Analysis
  • Price Position Analysis
  • Price Position Analysis
  • Price Position Analysis
  • Price Position Analysis
  • Price Position Analysis
  • Price Position Analysis
Originally published: 12/08/2020 06:20
Last version published: 13/08/2020 05:48
Publication number: ELQ-78220-2
View all versions & Certificate
certified

Price Position Analysis

Methods and tools to analyze product price positioning against the competition

Description
Every business needs to know how the prices of its products or services stand against the competition.

Comparing prices of complex products can be difficult. Cars, computers, consumer electronics, domestic equipment have different characteristics, parameters and specifications. Hotel rates, airplane fares, education programs, medical treatments include different ranges of services in their prices. So we need to make sure we are comparing apples to apples in our analysis.

A proper pricing analysis is based on the following concepts:

– There is a “listed price” which a customer sees on the price tag. This price depends on product’s features and attributes which are different across producers and product categories. Therefore, listed prices rarely give a fair indication of product price position.

– To perform an accurate pricing analysis we take “adjusted prices” by “stripping off” the products of certain features to bring them down to closer equivalents. The implied prices of such products become comparable and show which one is really more expensive.

My publication explains price analysis further and provides the necessary tools and techniques. It also explains the basics of market price positioning and pricing strategies used by producers to convince customers to buy more expensive (premium) products.

This publication is part of my sales and product analysis series which also includes:

– Analyzing Sales and Product Performance (https://www.eloquens.com/tool/dXAVfKnZ/finance/financial-modeling-courses-tutorials/analyzing-sales-and-product-performance)

– Price-Volume-Mix Analysis (https://www.eloquens.com/tool/zQwBi72a/finance/variance-analysis-excel-templates/price-volume-mix-analysis)

– Measuring and Modeling Seasonality (https://www.eloquens.com/tool/7jLXsr8b/finance/financial-modeling-courses-tutorials/measuring-and-modeling-seasonality)

This Best Practice includes
1 Excel File, 1 pdf file

Acquire business license for $15.00

Add to cart

Add to bookmarks

Discuss

Further information

Compare prices of complex products or services

Any business offering complex multi-feature products or services

When products are simple enough and their prices can be compared on an 'as is' basis

Reviews

  • Be the first to review this Downloadable Best Practice

    Write a review


keyboard_arrow_leftkeyboard_arrow_right

More Best Practices from Andrei Okhlopkov

See all
keyboard_arrow_leftkeyboard_arrow_right

Any questions on Price Position Analysis?

The user community and author are here to help. Go ahead!


0.0 / 5 (0 votes)

please wait...