What Can You Learn from Your Competition?

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This is my first post of the New Year and I want to say Welcome to 2021! Let's get into today's post.

When you’re trying to decide how much to price your products, there’s a lot you can learn from your competitors. While ultimately several factors will impact how much you should price your products, your competition can certainly help point you in the right direction.

Here, you’ll discover some key information that you can learn from your competition and how it can help you to determine the right pricing strategy.

How Much Are They Charging?

The first thing you can learn from your competitors is how much they are charging for similar products. Now, it’s important to compare at least three different competitors here. This will give you the best idea of the average price your product type sells.

It’s important to not just look at the overall price. You’ll also need to look at what customers get for their money. Are their products different from yours? Do they offer the same things? If not, this needs to be taken into account when you’re comparing their prices to the ones you are considering. 

So, while you shouldn’t use your competitors’ pricing as the only reference for how much you should charge, it can definitely help narrow down a figure. Pay attention to any discounts they offer, alongside any tiered pricing models they might include. 

You could also see whether they are offering any new pricing models. There may be a way of pricing your products you hadn’t considered. 

What Aren’t They Offering?

You can also learn a lot by looking at what your competitors are not offering. This gives you the opportunity to capitalize on the gap in their services. If you can offer what they don’t, you can charge a more premium price for your products and services. 

If you’re struggling to determine gaps in their products, take a look at reviews for the company. You’ll often find that customers recommend improvements within their reviews of a business. So, take a look and see what customers aren’t getting from your competitors and use this to your advantage.  

Look at Their Financials

OK, so you aren’t going to be able to see full financial records. However, you can get an idea of your competitors’ finances. Many provide reports on their spending, especially how much they’re spending on marketing. You’ll also be able to see how much profit they are earning.

As well as that, you can look at any paid advertisements they’re running and see how effective they are. Understanding how much they are spending on marketing will give you an idea of how much you should be spending if you want to see the same level of results.

There is a lot you can learn from your competitors. While you shouldn’t focus on simply offering a lower price than them, you can use their pricing structure to influence your own. 

The above are some of the main things to compare and look into when researching your competitors. When done correctly, competitive pricing can really drive sales and push your business ahead of the competition. 

So what do you guys think? Do you any strategies to learn about your competition? Was this helpful? Drop your personal experiences in the comments!

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To your happiness and success!!

Until Next Time! Stay Beautiful!

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