Category Benchmark
Where do you sit on the shelf? Visualize your price point against the full spectrum of your industry (Low, High, and Average).
Market Data
Market Spectrum
Shelf Placement
You are in the Mid-Market segment.
Distance from Floor
You are $35 above the cheapest option. Your marketing must explain why you are worth that extra cost.
Distance from Ceiling
You are $45 cheaper than the most expensive option. This is your 'Value' argument against the luxury leader.
Strategy Check
You are in the crowded middle. Focus on unique features or brand story.
Execution Steps
Enter your product category name.
Input the Lowest and Highest prices found in the market.
Input the estimated Average Market Price.
Enter your own price to see where you land on the spectrum.
Pro Strategy
- If you are in the 'Premium' zone (top 20%), ensure your packaging and branding are superior.
- If you are the absolute cheapest (Market Min), verify your unit economics. Can you sustain a price war?
- Look for 'Price Gaps' in the spectrum where no competitors exist. That is an opportunity.
Core Concepts
Price Banding
The distinct tiers of pricing in a category (e.g. Budget < $50, Standard $50-$100, Premium > $100). Knowing which band you are in dictates your messaging.
The Middle Squeeze
Being exactly average is dangerous. You are too expensive for budget shoppers, but not premium enough for status shoppers. Differentiation is critical here.
Anchor Points
The Market Max serves as a high anchor, making your price look reasonable. The Market Min serves as a floor.
What is Category Benchmark?
This tool creates a visual distribution map of the category pricing landscape. By plotting your price relative to the Min, Max, and Mean, it contextualizes your offer within the customer's consideration set.
Best For
- • Entering a new market.
- • Rebranding or repositioning.
- • Defending against a new low-cost competitor.
Limitations
- • Assumes the 'Average' is weighted or known (user input).
- • Doesn't show the volume of sales at each price point.
- • Simple range doesn't account for feature differences.
Alternative Methods
Positioning Matrix
Mapping Price vs Quality specifically.
Price Index
Comparing directly against specific competitors rather than a range.
Industry Applications
See how this methodology generates real revenue uplift in different sectors.
Premium Coffee
Launching a new bean blend.
Market Range: $8 - $25. Avg: $14. Client wanted to launch at $15.
SaaS Analytics
Competitors ranged from free to $1000/mo.
Narrowed benchmark to 'SMB Tools'. Range $29 - $99.