|All Industries, Financial Model, General Excel Financial Models|
|Brand, Excel, Financial Projection, Forecast, Marketing, Pricing, Sensitivity Analysis|
Every business needs to know how the prices of its products or services stand against the competition. Comparing the prices of complex products can be difficult. Cars, computers, consumer electronics, domestic equipment have different characteristics, parameters, and specifications. Hotel rates, airplane fares, education programs, medical treatments include different ranges of services in their prices. So, we need to make sure we are comparing apples to apples in our analysis.
Proper pricing analysis is based on the following concepts:
- There is a “listed price” which a customer sees on the price tag. This price depends on the product’s features and attributes which are different across producers and product categories. Therefore, listed prices rarely give a fair indication of product price position.
- To perform an accurate pricing analysis we take “adjusted prices” by “stripping off” the products of certain features to bring them down to closer equivalents. The implied prices of such products become comparable and show which one is really more expensive.
My publication explains price analysis further and provides the necessary tools and techniques. It also explains the basics of market price positioning and pricing strategies used by producers to convince customers to buy more expensive (premium) products.
You will get two files upon purchase:
- Excel Template – is fully editable/customizable
- PDF file – contains the explanation and instructions
This publication is part of my sales and product analysis series which also includes:
- Analyzing Sales and Product Performance
- Price-Volume-Mix Analysis
- Measuring and Modeling Seasonality
Please check them out too in case you are in need of the above templates.