Competitive Pricing Assessment

At $10M+ ARR, You are losing money. Not because of bad product, But because of bad pricing. Why pricing? → Competitor pricing weakens positioning → Pricing doesn’t match customer value → Customers stay on the cheapest plan → No upsells, no expansion revenue → Too few users on annual plans → Enterprise deals lack flexibility → Pricing is never tested Lack of pricing strategy directly affects your revenue. Here are 7 steps to fix it. 1. Audit pricing by revenue segment → Where is pricing suppressing upgrades? 2. Reposition pricing against competitors → Own a category, not just a price point. 3. Expand revenue streams → Upsells, add-ons, usage-based models for high-value users. 4. Charge based on value, not just cost → Align pricing with impact and willingness to pay. 5. Move customers to annual → Build ACV and retention with incentive-based annual pricing. 6. Enable enterprise flexibility → Custom contracts, volume discounts, and deal-based pricing. 7. A/B test pricing regularly → At this scale, small price shifts = millions in ARR gains. At $10M+, pricing isn’t just a strategy, it’s a competitive advantage. P.S. How often are you testing your pricing strategy? ♻️ If you find value, let others benefit too. __________________________________________ Ready for more SaaS pricing insights? Follow me, Marcos Rivera🔔

How to Set Competitive Hotel Pricing Without Sacrificing Margins. let’s dive deep into how hotels can set competitive pricing without hurting their profit margins. I’ll break this down clearly with examples . --- 1. Understand Your Costs Thoroughly Before setting any price, you must know: Fixed costs: Rent, salaries, utilities Variable costs: Housekeeping, amenities, laundry Break-even point: The minimum occupancy rate and price per room needed to cover costs Example: If your hotel has: Fixed costs: INR 50,000/month Variable cost per room: INR 30 50 rooms You can calculate the break-even price per room at different occupancy levels. At 50% occy (25 rooms/day) Fixed cost per room = INR50,000 ÷ (25 rooms × 30 days) = INR 66.67 Add variable cost: INR 66.67 + INR 30 = INR 96.67 So, you need to charge at least INR 97 to break even. --- 2. Use Dynamic Pricing (Yield Management) Adjust your rates based on: Seasonal demand Local events Competitor pricing Booking window Example: Standard weekday rate: INR 120 Weekend rate during peak season: INR 180 Event night when competitors increase to INR 220: You adjust to INR 210 to stay competitive but profitable. --- 3. Monitor Competitor Rates Strategically Use rate comparison tools (like Rate Gain, STR, or OTA Insights) to track how nearby hotels price their rooms. Example: If competitors drop rates midweek, instead of undercutting, offer value packages (free breakfast, spa discounts) at your regular rate to justify your pricing without reducing it. --- 4. Offer Value-Added Packages Rather than slashing room prices: Add complimentary services (breakfast, parking, Wi-Fi) Bundle experiences (city tours, spa treatments) Example: Instead of reducing a INR 150 room to INR 130, offer: INR 150 room + breakfast + late checkout Guests perceive more value, you maintain revenue. --- 5. Set a Minimum Acceptable Rate (Floor Price) Never sell below a certain price that would harm your profit margin. Example: If your break-even price is INR 97 and you want a 30% profit: INR 97 × 1.3 = INR 126.10 So, never price rooms below INR 126. --- 6. Use Segmented Pricing Different customers pay different rates based on: Booking channel (website, OTA, corporate) Loyalty status,Group bookings Example: Direct booking via website: INR140 with free parking OTA: INR 150 without parking Corporate clients: INR 130 flat with breakfast --- 7. Forecast Demand and Occupancy Analyze historical data, booking patterns, and upcoming events to predict demand and adjust pricing in advance. Example: If you know December has 80% occupancy historically, start raising rates 30 days before, and fine-tune as bookings come in. --- Final Thought Competitive hotel pricing is not about being the cheapest — it’s about being the smartest. By knowing your costs, forecasting demand, adjusting rates and enhancing perceived value, you can maintain strong profit margins while staying competitive in your market.

For over a decade, I've worked alongside mid-market CPG brands ($50MM - $1B revenue), and the story is often the same: smart people, great products, but struggling to maintain profitable growth in the face of relentless pressure. Trade promotions that don't deliver and subsidize baseline sales, competitor price wars, and the constant battle for margin across the value chain. It's exhausting, and frankly, it's often unnecessary. This isn't about "tough market conditions." It's about having the right system for Pricing and Revenue Growth Management Analytics and processes. It's about moving from reactive firefighting to a proactive, insights-driven strategy built on a foundation of integrated/harmonized data and some essential predictive analytics/scenario analyses (no fancy AI). 𝗛𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗿𝗲𝗮𝗹𝗶𝘁𝘆 𝗜 𝘀𝗲𝗲 𝗺𝗼𝘀𝘁 𝗼𝗳𝘁𝗲𝗻: • 𝗣𝗿𝗼𝗺𝗼 𝗥𝗢𝗜? 𝗔 𝗕𝗹𝗮𝗰𝗸 𝗕𝗼𝘅. Many brands are flying blind, repeating promotions without knowing if they generate incremental profit. Retail buyers are often in the dark as well. We're talking about potentially wasting 10-20% of gross revenue on ineffective trade promotions. • 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗼𝗿-𝗗𝗿𝗶𝘃𝗲𝗻 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗣𝗮𝗻𝗶𝗰. Reacting to every competitor's move leads to a race to the bottom. You need the proper Pricing RGM intelligence and scenario planning, not knee-jerk reactions. • 𝗧𝗵𝗲 𝗣𝗿𝗼𝗳𝗶𝘁 𝗣𝗼𝗼𝗹 𝗠𝘆𝘀𝘁𝗲𝗿𝘆. Who's benefiting from your promotions? Are you subsidizing your distributors or retailers? The lack of transparency here is a significant margin leak. It doesn't have to be this way. Here's how to take back control: 1. 𝗧𝘂𝗿𝗻 𝗜𝗻𝘁𝗲𝗿𝗻𝗮𝗹 𝗮𝗻𝗱 𝗲𝘅𝘁𝗲𝗿𝗻𝗮𝗹 𝗗𝗮𝘁𝗮 𝗶𝗻𝘁𝗼 𝗔𝗰𝘁𝗶𝗼𝗻𝗮𝗯𝗹𝗲 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗮𝗻𝗱 𝗽𝗿𝗼𝗺𝗼 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀. Stop guessing. Implement a driver-based revenue and margin analysis to isolate the true impact of price, volume, mix, and competitive actions. Promo ROI capabilities enable you to reallocate spend to profitable promotions and strategically adjust pricing or product mix. 2. 𝗣𝗿𝗲𝗱𝗶𝗰𝘁, 𝗗𝗼𝗻'𝘁 𝗥𝗲𝗮𝗰𝘁. Near real-time price intelligence and scenario modeling are weapons against price wars. Model pricing impacts and make proactive decisions to protect your brand and bottom line. 3. 𝗠𝗮𝗽 𝘁𝗵𝗲 𝗣𝗿𝗼𝗳𝗶𝘁 𝗣𝗼𝗼𝗹 𝗟𝗮𝗻𝗱𝘀𝗰𝗮𝗽𝗲. It reveals exactly where value is being captured—by you, your distributors, or the retailers. It also helps with renegotiating trade terms. 4. 𝗣𝗿𝗶𝗰𝗲 𝗳𝗼𝗿 𝗩𝗮𝗹𝘂𝗲, 𝗡𝗼𝘁 𝗝𝘂𝘀𝘁 𝗩𝗼𝗹𝘂𝗺𝗲. Price-value mapping aligns your pricing with customer perception and willingness to pay. It's about reinforcing brand equity while maintaining profitability. Stop leaving your pricing to chance. I've created a 𝗖𝗣𝗚 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 & 𝗥𝗚𝗠 𝗥𝗲𝘀𝗼𝘂𝗿𝗰𝗲 𝗛𝘂𝗯 specifically for mid-market CPG brands. It's packed with practical guides, tools, and frameworks you can use immediately to address the above pain points. The link to access is in the comments.

Pricing Analysis: Pricing is more than just setting a number—it’s a strategic lever that directly impacts profitability, market share, and customer demand. Yet, many businesses either price too high (losing customers) or too low (leaving money on the table). So, how do you analyze and optimize pricing using data? 1️⃣ Cost-Based Pricing: Cover Your Costs First Ensure your price covers both fixed and variable costs while maintaining a healthy markup. 📌 Formula: Selling Price = Cost + (Cost × Markup %) ⚠️ Pitfall: This method ignores competition and customer perception. 2️⃣ Competitive Pricing: Know Your Market Position If competitors price lower, do customers perceive them as "better value"? If you price higher, can you justify it with brand or features? 📌 Price Difference % = ((Your Price - Competitor Price) ÷ Competitor Price) × 100 ✅ Action: Collect competitor pricing (via web scraping or market research) and adjust accordingly. 3️⃣ Profit Margin & Break-Even Analysis Before setting discounts, understand how price changes impact profitability. 📌 Profit Margin % = ((Selling Price - Cost) ÷ Selling Price) × 100 📌 Break-even Price = (Fixed Costs ÷ Sales Volume) + Variable Cost per Unit ⚠️ Warning: If your price is near break-even, excessive discounts can erase your profits. 4️⃣ Price Elasticity: Will a Price Change Affect Demand? If you increase the price by 10%, will demand drop by 5% or 20%? 📌 Price Elasticity = (% Change in Quantity Demanded ÷ % Change in Price) ✔️ Elasticity > 1 → Demand is sensitive to price (luxury items, non-essentials). ✔️ Elasticity < 1 → Demand is insensitive (necessities, brand-loyal customers). ✅ How to measure? Look at historical data, conduct A/B tests, or survey customers. 5️⃣ Dynamic & Tiered Pricing Strategies Smart businesses use data-driven pricing to adjust prices based on demand, seasonality, and customer behavior. 💡 Examples: ✔️ E-commerce platforms use real-time pricing based on competitor trends. ✔️ Subscription businesses offer tiered pricing for different customer segments. ✔️ Retailers adjust prices based on demand fluctuations. ❓ How do you approach pricing in your industry? Let’s discuss in the comments! 🚀 #Pricing #DataAnalytics #BusinessStrategy #PriceOptimization

Competing on low price? That’s a race to the bottom. Instead, attract customers with a 𝑝𝑠𝑦𝑐ℎ𝑜𝑙𝑜𝑔𝑖𝑐𝑎𝑙 𝑝𝑟𝑖𝑐𝑒. Why? Let’s look at the reality: Amazon is a fiercely competitive marketplace. If you think you can win by simply having the lowest price, here’s what will happen: 1) You’ll crush your profit margins. 2) The customers you attract with low prices will jump ship as soon as they find a lower one. And business isn’t a joke. Every strategy needs to drive profitability. If you’re acquiring customers but losing money, what’s the point? So, how do you create a pricing strategy that pulls in customers while protecting your bottom line? The answer lies in using pricing tactics strategically: ➤ Dynamic Pricing Adjust prices based on demand, competition, and inventory levels in real-time. (Pro tip: Use tools that track real-time ASIN data. Here’s one to try: https://t2m.io/ZC5KWuye) ➤ Psychological Pricing Prices like $19.99 instead of $20 trigger the perception of getting a deal. ➤ Competitive Pricing Benchmark against competitors to stay relevant without slashing your profit margins. ➤ Penetration Pricing Start low to capture market share, then adjust as your brand gains traction. ➤ Value-Based Pricing Set prices based on the perceived value to the customer—not just the cost. ➤ Keystone Pricing Double your wholesale cost to set a standard retail price. ➤ Bundle Pricing Combine multiple products at a discounted rate to increase perceived value and move inventory faster. ➤ Discount Pricing Offer temporary price reductions to clear stock or boost sales. ➤ Loss Leader Pricing Price certain products at a loss to attract customers who will make additional, profitable purchases. ➤ Skimming Pricing Begin with a high price and gradually lower it as demand shifts. ➤ Premium Pricing Maintain higher prices to signal exclusivity and premium quality. ➤ Cost-Plus Pricing Add a fixed markup to the cost of goods to ensure a stable profit margin. The key? Leverage these tactics strategically. Every pricing strategy should align with your business goals and attract the right kind of customers—the profitable ones. Let me know if there’s a strategy you want to dig into further! P.S. We’re launching an exclusive program for established brands ready to dominate Q4 with data-driven strategies. Message me ‘QUALIFY’ to see if you’re a fit. As trusted partners of Alibaba and Amazon, we’ve helped sellers and agencies generate over $200 million in revenue. Are you next?

Competitor Analysis in FMCG: FAQ 1. What is competitor analysis and why is it important for FMCG companies? Competitor analysis is a systematic process of evaluating the strengths, weaknesses, strategies, and market positioning of your competitors. In the fast-paced and dynamic FMCG industry, understanding your competitors is crucial for identifying opportunities, mitigating threats, and making informed strategic decisions to stay ahead of the curve. 2. How can competitor analysis help me understand market dynamics? FMCG markets are constantly evolving. By analyzing your competitors' product launches, marketing campaigns, and overall strategies, you can identify emerging trends, such as shifts in consumer preferences towards healthier or more sustainable products. This knowledge helps you adapt your own offerings and stay relevant in the market. 3. How can I use competitor analysis to develop effective pricing strategies? Pricing is critical in FMCG, especially given its price-sensitive nature. By analyzing competitor pricing strategies, including discounts, offers, and perceived value for money, you can determine optimal price points for your products. This ensures you remain competitive while also maintaining profitability. 4. What role does competitor analysis play in product positioning? A strong product positioning strategy is essential for differentiation in crowded FMCG markets. By understanding how your competitors position their products, you can identify gaps and opportunities to carve out a unique space for your own offerings. For instance, if a competitor focuses on premium products, you could position your brand as a value-for-money alternative. 5. How can I leverage competitor analysis to improve customer retention? Customer loyalty is crucial in FMCG. By analyzing what attracts customers to your competitors, such as superior customer service, loyalty programs, or unique product features, you can identify areas where you can enhance your own customer experience and improve retention rates. 6. What are some key metrics to monitor during competitor analysis? Essential metrics include competitor product portfolio analysis (range, quality, innovation), pricing strategies, marketing activities, market share in different segments, customer feedback and sentiment, distribution network strength, and retailer relationships. 7. Can you provide a practical example of competitor analysis in action? Imagine a competitor launches a premium baked snack aimed at health-conscious consumers. Your analysis might lead you to: Develop: A baked snack with a unique flavor profile that differentiates your offering. Price: Competitively, highlighting affordability compared to the premium competitor. Distribute: Focus on mass distribution through general trade channels to reach a wider audience. Market: Emphasize the taste and health benefits of your snack through targeted campaigns.

5 Simple Frameworks to Determine If Your Pricing Strategy Is Working. Evaluating pricing strategy effectiveness is tough. When deals succeed, it's hard to tell if you could've charged more without losing the sale. If you lose, it's unclear whether price or other factors like product features were to blame. To assess effectiveness, start with customer feedback. As you grow, analyze sales, customer segments, and revenue. Use data trends to refine your strategy, evolving from basic feedback to comprehensive analysis. Here’s how to assess your pricing strategy: 1️⃣ Ongoing competitive reviews and customer surveys: Continually track your pricing against competitors and gather customer feedback on value perception. Use NPS surveys, casual conversations with account managers or support staff, and schedule regular pricing-specific check-ins with customers from each segment. This ongoing process ensures your pricing strategy remains aligned with market conditions and customer expectations. 2️⃣ Routine price increases: Test price hikes with select customers to gauge untapped willingness to pay. A popular tactic among VCs is to ask if customers would still use the software if the price doubled. While hypothetical, implement periodic increases to assess customers' price tolerance. If you can raise prices regularly with minimal churn, you haven't hit the ceiling of what customers will pay for your product. 3️⃣ Variance analysis: Create a scatter plot of all customers and their average sale price (ASP), segmented by characteristics like account size, region, or employee count. Look for insights on successful price points within customer sets. A scattered plot suggests ad hoc pricing, while concentrated bands indicate consistency. Identify and address outliers, considering whether to adjust their pricing to maintain fairness and prevent potential customer distrust. 4️⃣ Price realization: Plot customers' pricing as a percentage discount to rack rate. Analyze median discounts across deal types. Consistent discounts above 50% likely indicate your starting price is too high, especially if large discounts require special approvals. This analysis helps refine your pricing strategy and starting points for negotiations. 5️⃣ Sales efficiency and escalation analysis: Measure typical touchpoints, redline negotiations, and escalations required for deals in each customer segment. Monitor how pricing changes impact sales cycle length and complexity. If cycles are much longer than ideal, pricing may be too high. As you grow, examine burn multiple and sales efficiency metrics for additional pricing insights. These indicators can signal if prices are set too low or high for optimal business performance. That's it. . #pricing #businessmodel #founders #investors #startups #analysis #entrepreneur #founder #startup #product