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Our Magento custom report shows analysis of another important metric for e-commerce business: average product price. The price that is presented in this report is based on the orders, so that price of the product counts only if the product was ordered.
Magento 2 reporting extension is presented with the following valuable filters by website and your ecommerce store:
KPIs and graphs:
Average Price 1 year change
Bar charts with breakdown of average product price by product category and by customer groups.
Average price timeline shows how average product price is changing over time.
Constant monitoring of your company’s average price for the product or service is a vital thing every successful businessman should do. It is advised to conduct such a type of research no less than twice a year in order to stay updated with the market alterations and overall economic situation that is also prone to change.
Every marketer knows that the price is the first parameter why shoppers choose a product they want to pay for. So, if your average price in Magento bi is much higher than in your competitor's store, your chances to get more customers are lower and vice versa.
But, bear in mind that if the price is too low compared to the market’s averages, your buyers may consider that the product you are selling is a fake or a replica of some modern and well known brand.
Concluding all the above, to stay tuned and profitable in the market keeping a balance is the first and foremost thing for every entrepreneur.
1. Review all prices your competitors have;
2. Define the price index using Magento reporting tools;
3. Thoroughly research and analyze the historical pricing data to get the information about competitors behavior and trade tendencies.
In economics, the term “fair price” explains as follows. A fair price it’s a price that corresponds with the maximum sum a customer can pay for a product or service.
Concerning the pricing strategy, you should consider your business aims and core objectives. Today, the most popular strategies are:
Cost-based pricing strategy is where a sum you spent to maintain your business is included in your final price for the product or service you are offering to your customers;
Market-based pricing strategy is when you set for your product an average price the market has;
Dynamic pricing strategy is considered to be one of the best and profitable market strategies where all key metrics and parameters of the price formation are taken into account.
Check out the new Product Attributes Analysis report and read about Magento power bi Integration with Magento platform to get more information on how this and other reports can help your business to profit!