The price index is vital for any company in the eCommerce world. The price index is a figure that shows the difference between your product and your online competitor. But we know what you are thinking. “Is the price index going to make a difference in my company?” The answer is YES because it lets you know which competitors are taking over your market territory. Also, and even better. With the price index, you can raise the prices of your products to make more margin. 

The price index also helps you identify competitors and create pricing strategies. By looking at the price index, your company will improve the position of your brand in the market you are in and its sales. To calculate the price index, you need two factors.   

• The price of your competitor or competitors. 
• Your price (for the same product).  

When you have many competitors, you take the average price of your competitors. So, the formula is. You take the price of your product, divide it by the average competitor market price, and multiply that by 100. You should have one of these three results. 

• If it is over 100, that means your product has a higher price than your competitors. 
• If it is 100, that means your product has the same price as your competitors. 
• If it is below 100, that means your product has a lower price than your competitors. 

Source: PriceTweakers 

Once you have your results, it is time to adjust your strategy to your likening and depending on your objectives. Isn’t it great to see how your products stack up to your competitors? Knowing the price index is a figure that helps you create and improve your pricing strategies. Also, understand how you compare yourself to your competitors. But there is a problem. Obtaining that information takes a lot of your time because you and the majority do this manually.   

PriceTweakers is the perfect solution for your company because we monitor the prices of your competitors automatically and do much more. Also, we collect information regarding your products faster, including the price index. Forget the times you had to sit with your calculator and digit numbers to get the price index. Contact us immediately to get the best pricing software. 

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