Price position
Price position is where your price sits against the market for a comparable product at a point in time: above, level with or below your competitors.
- Is
- Where your price sits against comparable competitor prices at one point in time.
- Read
- Actual position against the intended one, such as within 3% of two named competitors.
- Watch for
- Gaps against a competitor that is out of stock or matched to the wrong product.
Updated
Meaning / 01
What it means for retail and category teams
Price position describes one moment. A useful statement of it names the product, the competitors it was measured against, how closely the products match and when the prices were observed. It is usually expressed as a percentage gap or an index.
It should be read alongside availability. A competitor that is cheaper but out of stock cannot win that sale, and a gap that has lasted a day means something different from one that has lasted a month.
Stakes / 02
Why it matters
Pricing strategies are usually expressed as intended positions, such as matching a key competitor on known-value items or sitting a few per cent above on premium lines. Measuring actual position against intended position shows where prices have drifted. The gap is a signal to investigate, because margin, supplier funding and how price-sensitive shoppers are on that line all bear on whether to move.
In twelfth / 03
How Twelfth handles this
In twelfth's Tracked set, each row shows the observed price position against up to four competitor columns, with a filter for lines where your price is materially over any shown competitor, and it marks a matched retailer that is out of stock. The product's own guidance is to treat a price position as a prompt: margin, funding, sales response and the seller relationship all need checking before a price changes.
Example / 04
Illustrative example
The business and figures are illustrative. None of it is customer data.
| Inside the band | 34 |
|---|---|
| More than 3% above both | 4 |
| Cheaper competitor out of stock | 2 |
| Result | 4 lines to review |
Six lines sit outside the band, and only four of those gaps are real.
Read the example as text
A category manager's policy is to sit within 3% of two named competitors on 40 key lines. A weekly read shows 34 lines inside the band, four lines more than 3% above both competitors, and two lines where one competitor is cheaper but has been out of stock all week. The four lines go to review; the team notes the two out-of-stock comparisons and leaves those prices alone.
Related / 05
Related concepts
Next step
Look at the price gaps that matter
Bring a few products and competitors. We can walk through matching, observation dates and which gaps deserve a closer look.
