How can you use competitive intelligence to inform pricing in fashion?

How I do the pricing. Step -1(Margine based )= I align all the cost which are incurred while getting yours good to yours end consumer. i.e .Freight,Packing,Marketing,Markdowns ,Channel partner commission all above COGS. Step -2(Comption based) = I align Competitors price to ours and see if that can be competitive while including all our margins. Step -3(Value base)= Do my brand has the brand equity or my product has the differentiation to charge a premium from my consumers if yes I go for it.

Competitive pricing comes down to really understanding your customer and your position in the market. It is also important to identify your key competitors who may offer similar products or services. Understand the market dynamics and determine if the market is price-sensitive or value-oriented to see how this fits with your business strategy. This applies across many sectors and industries.

A huge data is available for competative mapping as of product for pricing Decision is concerned. Need to have both primary and Secondary data. Yours own insight or what we say gut feeling will add to the validation .

The access to so much information online is great but I also believe in physically exploring the market(s) where possible and walking in your customers shoes to gather pricing information from your competitors for similar products or services. Using as many sources as possible before collating your data will help make on informed decision on your strategy.

When benchmarking Competitor Prices it includes a number of factors. (a) Analysing their pricing models, discounts, and promotions. (b) Determine Your Pricing Position: eg: Premium Pricing: If your product or service offers unique features, higher quality, or exceptional value, OR Competitive Pricing: Where you align your prices closely with competitors if your product or service is similar in quality and features. and Discount Pricing: If cost efficiency allows, you may decide to undercut competitors and gain market share or establish a range of prices based on competitor pricing, considering both high and low ends.

Some insights. How do yours prices compare to competitors of similar product? Before asking this we should be clear who our competitors is ex if a brand is pricing it's product at 60 % gross margin . But a corner store is pricing it at 20% due to both having access to same supply chain. Whom you think our consumer will buy the goods from. In today's world one sub category canabalizez on others . If comfort is not offered on heels and sandals consumer will opt for sneakers . You need to have both point of parity to start will and build on with point of differentiation i.e Yours product & Supply chain

One Thing to Add Competative Intelligence is effective in pricing only when it's done in totality. Some points to answer here are for start up especially in fast fashion segment pricing before going forward. 1. Do your consumer find brands you tend to take as your competitors actually your competitors. 2. If you are pricing your product only on assumption against yours assumed competitors it won't work. 3. In cases You are competing with established brand in yours category .the product won't give you the leverage to price your product in competition to them. 4. You have to create that value that trust in consumer mind that top of the mind recall to get noticed.