It's important to remember that our mission here is to offer a product or service that offers a competitive advantage over the competition, but you still want to maintain a profit margin.

This can be daunting; to ensure a profit, you might set your price too high, scaring off potential customers. So why not choose a lower price? Well, you could severely damage your profits and turnover. Or, in the best-case scenario, you'll attract the wrong customers.

There's indeed a lot to consider.

But one common pricing strategy is to conduct a competitive pricing analysis. It's an effective way to choose prices used by businesses across all industries.

Pricing your product based on the competition is not only a good starting point but also helps you differentiate your brand while maintaining or even increasing market share.

This is especially important for retail businesses, who need another way to differentiate their products to attract customers since they're all selling the same products.

However, competitive pricing analysis is more than just looking at the market, taking notes, and setting a price. It requires significant time and research to conduct effectively.

In this guide, we'll learn about competitive pricing analysis and explore how to beat your competitors and use this strategy as a competitive advantage.