About This Resource
Develop a point of view on how your products are priced relative to competitors in the market.
While developing a pricing strategy it is important to have an understanding of your competitors, in particular the ways in which they are choosing to price their products. The aim is to benchmark your products and prices with those of your competitors in order to understand how your enterprise fits into the greater marketplace.
Looking at the competitive pricing landscape helps you:
- Determine if your product or service is above, below, or at average market price
- Understand what your existing and potential customers see and experience when searching for similar products or services
- Identify your strengths and weaknesses compared to your competitors
- Identify weaknesses in competitors and see where you can fill in the gaps
There are whole industries built up around providing companies with real-time competitive pricing data and this process can be as complex as you want it to be (and can afford). However, for most social enterprises, doing a basic pricing competitive analysis can be done internally with a little bit of investment in time. This learning guide will provide you with a tactical overview of the basics on how to conduct an effective price and product benchmarking project.