There are several effective ways to analyze pricing to maximize profit margin. One of the most common methods is competition-based pricing. This involves comparing your product's price with that of your competitors. You can use tools like a Competitor perceptual map and a Kotler's matrix to visualize this comparison. The perceptual map places each product based on its price and perceived quality, with the bubble size indicating each competitor's market share. Kotler's matrix, on the other hand, defines each competitor's pricing strategy. By understanding where your product stands in relation to others in the market, you can make informed decisions about how to price your product to maximize profit margin.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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