Price Benchmarking

                       
Price benchmarking means comparing one's prices to the prices of competitors in a particular market segment, a valuable tool in determining prices to achieve greater value.

Price Benchmarking Examples

    Oil industry
    Local bookseller
    Real estate transactions

Deeper Insights Into Price Benchmarking

Price benchmarking is typically utilized when a company has a competitor-based pricing strategy. By observing the quality of products and brand popularity of other businesses, a company is able to use price benchmarking to determine a price for their products in relation to where they think they stand amongst the competition.

  The term benchmark pricing is widely associated with commodity markets, open to the public and widely used as a reference in negotiating prices. Price benchmarking is also leveraged in products markets for comparison of a major competitor, and in the case of market intelligence where public pricing is not available.   

Related Blog Posts

6 Myths About Pricing You Need to Debunk For Your Pricing Strategy

What #SharkWeek can Teach You About Scarcity in Your Pricing Strategy

Big Mac's Lessons on Global Economics and Your Pricing Strategy

A Peanut Butter Story: The Highs and Lows of Your Pricing Strategy

Related Keywords: Competitor-Based PricingPenetration PricingPrice IndexPrice Corridor