Analysing competitor prices: setting the optimal price for maximum profitability

Every business owner’s goal is to increase annual revenue with maximum profitability. One of the best ways to achieve this is by using an optimal pricing strategy tailored specifically to your business. However, setting optimal prices can be quite challenging due to different market conditions.

Suppose your company competes in multiple market segments, which significantly complicates your pricing strategy. Before making any changes, you must understand and develop a unique approach for your niche. Trying to keep up with all market fluctuations while having minimal information leads to the opposite effect—loss of revenue.

This is why having comprehensive information about your market is essential. Armed with the right data, you can prevent any changes that might reduce your profitability.

Competitor price analysis must be conducted without delays and with maximum accuracy. Besides setting the optimal price, it is crucial to track market price movements and competitors’ actions in your niche. Such monitoring ensures an accurate assessment of your products and helps position them in the market relative to similar or alternative goods.

What Does Competitor Analysis Include?

Ideally, analytical data should include the following information:

• The number of competitors in different market segments;
• The average number of companies, brands, and websites competing in the same field as you;
• For each of your products—differences in assortment and market positioning;
• A clear understanding of competitors’ pricing strategies;
• Recommendations for increasing sales volume or profitability.

Explore the simplest and most accurate competitor price analysis tool—PriceCop.

Once you obtain pricing strategy insights for your company, it’s important to understand how to use this data correctly. You may need to adjust your business’s pricing policy or even remove certain products that fail to meet the minimum desired profit margin while introducing new ones.