Having identified competitors in the market

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Perform some calculations and determine the average market price of the product in question. The following formula can be used to calculate the price index:

Competitor's price / Your price x 100
This formula is used to look at prices in more depth and detail. For example, it may indicate differences in product procurement. Perhaps your competitor is getting better prices from suppliers, allowing them to offer lower prices. Analyzing where your prices are better or worse than your competitors will allow you to adjust your prices accordingly where possible.

Historical price data
Monitoring competitors' prices is a critical process, although it can be time-consuming. However, by gradually collecting information, you will be able to identify patterns and trends in competitor behavior. This information can then be used to inform your loss-free pricing strategy.

Don't just look at your competitors' data - take a look at your own too. This approach will give you a realistic idea of ​​where you could gain an edge in the market and which of your products could enjoy elastic demand .

Of course, price analysis takes a significant amount of time, so you might also want to consider purchasing software such as the iDatica price monitoring platform to help you with this challenging task.

Diverse strategies
To develop the right pricing strategy for your products, you need to analyze the pricing situation. Analyzing the pricing situation can include studying a single product line or an entire assortment, as well as choosing the right pricing strategy for a new brand or product. You should also conduct an analysis that links volume and price to check the elasticity of your price.