Competitor Price Index Calculator
Calculate where your pricing sits relative to competitors on a weighted index, and see the revenue impact of moving toward or away from market position.
Formula & Reference
| Variable | Symbol | Formula | Units |
|---|---|---|---|
| Competitor Price Index Calculator | — | Index = (your price / weighted competitor average) × 100 | index |
Step-by-Step Examples
Your price 89; competitors 79 at 40%, 99 at 35%, 110 at 25%.
- Weighted avg = (79×40 + 99×35 + 110×25) / 100
- = (3,160 + 3,465 + 2,750) / 100 = 93.75
- Index = (89 / 93.75) × 100 = 94.9
- Priced below the weighted market average
Same prices, but competitor 1 holds 70% share and others 15% each.
- Weighted avg = (79×70 + 99×15 + 110×15) / 100 = 86.65
- Index = (89 / 86.65) × 100 = 102.7
- The same prices now put you above market
Your price 145, competitors averaging 95 weighted.
- Index = (145 / 95) × 100 = 152.6
- Well above market — sustainable only with clear differentiation
Real-World Applications
Common Mistakes to Avoid
A competitor with 5% share should not influence the benchmark as much as one with 60%. Unweighted averages distort the picture, sometimes reversing the conclusion.
Index comparisons assume broadly equivalent products. Differences in features, service, or terms make raw price comparison misleading.
Being priced at market parity is only appropriate if your offering is genuinely at parity. Otherwise you are either leaving money on the table or losing on value.