Have you ever seen something that seemed too good to be true? Like the chances of winning a car by buying french fries and a burger at McDonald’s. The catch is that multiple purchases and incredible luck are required, but what if it was actually as straightforward as McDonald’s made it seem?
The market price index (MPI) is actually as straightforward as it appears. It’s one number that provides your price’s position within your competitive landscape. Using a couple of different variables like competitor price, page visits, and more, MPI is a metric that shows if you’re more or less expensive than your competitors.
Last week Wiser’s head of pricing and analytics, Luke Lin, held a webinar on market price index. It introduced the concept of MPI, and provided different ways retailers can use the metric to their advantage. MPI can help you identify your price position, and you can use that information to identify how responsive shoppers are to your price changes. If you’re more expensive than a competitor and your sales are still impressive, you know you have pricing power. You can use this pricing power to improve your marketing strategies, and draw shoppers to your high margin products.
The MPI’s utilizations are incredibly versatile and can accommodate different needs regarding your pricing strategy. It gives you the ability to make data-informed pricing decisions and optimize your pricing strategy to earn the highest revenue possible. To learn more about Wiser’s MPI feature, check out our free whitepaper.
Contributing writer: Brian Smyth