Price analysis is the document that records the consumer response to the prices set by the company. These prices are not the actual prices but are set by the company specifically for the research survey that the company conducts. These proposed prices do not take into account the various cost elements in terms of the production and assumed fee from the product. The price analysis document also determines and examines the stated price and its potential to be profitable to the company.
Such an analysis document also studies the stipulated price of the related product closely in order to compare the price with other contemporaries. It records the different price units that combine to make the total price. The different competitive bids of prices in the market are also analyzed with respect to the company’s proposed price. This document is a formal record and must be constructed with utmost care.
- The full legal name of the company must be clearly stated in the price analysis document. A professional expert can also be hired by the company to do the extensive market research.
- The prices of the various competitive companies must be quoted in the document. A comprehensive analysis and comparison should be made with the company’s quoted price.
- The price that is set must also adhere to the laws and regulation as stated by the state government.
- The price analysis must also make note of the potential profitability of the price that has been set.
- The consumer’s reaction the price must be mentioned in the document. This is the most important aspect of the price analysis. The reaction will determine whether this price will be the final price of the product.
- Lastly, all the points must be presented in an organized manner and each point must be clearly explained for convenience.