Businesses use a price analysis spreadsheet template to identify the optimal price for their products or services. This eCommerce tool helps you shape the destiny of products or services in the market.
Table of Contents
How to perform price analysis?
Let us discuss step-by-step how to perform price analysis;
Understand your costs
Understanding how much you spend making your products is the first step of price analysis. In your costs of production, you must include both direct and indirect costs. Moreover, the foundational pillar of price analysis is knowing the true cost of bringing your product to market.
Research the market competitors
Determine your competitors and the amount they charge for something similar to your offering. Compare your product’s features, quality, and overall value with your competitors. If you are offering something extra and unique then your product’s price should be a bit higher.
Identify your pricing objectives
Identify your pricing objectives that are aligned with your business goals. Your objectives may include;
- Market penetration
- Maximizing profits
- Gaining a specific market share
- Simply covering costs
Understand customer’s preferences
It is essential to understand your customers and their perception of your product. Analyze their pain points, the features they like about your product, etc.
Test different price points
To find the optimal pricing strategy, do some experiments with different price points. See how your customers react by trying out different price points. In addition, assign different prices to a sample of your target market and then see their purchasing behavior.
Monitor regularly
Keep in mind that market conditions change and customer preferences evolve. Therefore, review and update your pricing strategy regularly.
Seek expert advice
You can seek advice from financial experts, economists, or business consultants if you feel unsure about certain aspects of your price analysis.
Sample of Price Analysis Spreadsheet Template
Editable Price Analysis Excel Template
Competitor Price Comparison Excel Template
Competitor Pricing Analysis Template Excel
Competitive Pricing Analysis Excel
Cost Analysis Template with Chart for Excel
FAQ’s
A product price analysis is a comprehensive assessment of different factors that have a great effect on the setting of the right price of a product. It includes the following factors;
1- Evaluating production costs
2- Competitor pricing
3- Perceived value by customers
4- Target market segments
5- Overall market conditions
These are as follows;
1- Cost-Plus Pricing
2- Market-Oriented Pricing
3- Penetration Pricing
4- Price Skimming
