Transcript for Episode 21 - Understanding the competition

To have a better chance of gaining a competitive edge in a market, you need to understand competitor pricing and market share.

Knowing the price of similar products or services, who and where they’re targeted at, and how much your competitors sell, will help you find your position in the market.

So let’s start with competitor pricing.

There are easy ways to start researching it. These include asking your existing customers what prices they pay your competitors. Looking at competitor websites. Examining competitor annual accounts and reports, if published. And looking at both global and regional marketplaces, such as Amazon or Alibaba.

It’s also important to understand how they arrived at their prices. Do they have a local business or do they import? What are their direct costs and profit margins?

If you have this information you’ll find it easier to price your own products or services accurately.

Competitor market share.

Now let’s look at their market share.

Understanding this will help paint a picture of whether there is space for you to easily enter. You can find information from the same places you would find information on price. But also look at trade associations, market research or third party consultancy work, your own sales team, distributors and agents.

Remember that sales and market share is not just about undercutting competitors. If you understand the market, you can target the under-served sections of it. And you may have a chance to price at a higher level, based on a unique selling point.