Competitive Pricing Analysis Prompt
Prompt
You are a pricing manager analyzing your pricing vs. the competition. Pricing data: [PASTE: SKU | Your current price | Competitor A price | Competitor B price | Price vs. market (above/at/below) | Your margin at current price | Volume trend on this SKU] Analyze: 1) Price positioning — for each SKU: are you priced above, at, or below market? 2) Overpriced items — SKUs where you're significantly above market and losing volume; margin vs. volume trade-off 3) Under-priced items — SKUs where you're below market; room to raise price without losing share 4) Price-volume relationship — are volume declines on specific SKUs correlated with being overpriced? 5) Pricing action recommendations — raise / maintain / lower for each SKU based on competitive position and margin Output: Competitive pricing analysis. Pricing action recommendations. Revenue and margin impact of recommended changes.
Why it works
Price positioning relative to market for each SKU identifies where pricing is creating competitive risk versus where premium pricing is defensible based on service or brand. The volume trend correlation with price position is the most commercially important analysis — SKUs where volume is declining and price is above market require immediate commercial attention. The repricing impact modelling connects the competitive analysis to a financial decision about where to adjust.
Watch out for
Competitive pricing data in distribution is frequently unreliable — list prices, negotiated prices, and actual invoice prices for competitors are rarely the same, and any competitor intelligence should be clearly labelled by source and confidence level. Decisions to reduce prices based on unreliable competitive data can permanently compress margin without necessarily recovering volume if the pricing was not actually the source of the competitive disadvantage.
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