Competitor price index

The term "competitor price index" (CPI) describes a statistic used by retail and e-commerce companies to track and evaluate their own prices against those of their competitors. With the use of this index, companies can assess market pricing patterns and modify their own rates accordingly. Businesses can use the Competitor Price Index (CPI) notion as a crucial tool to comprehend their place in the market and create winning pricing strategies. The CPI is a gauge of competitors' prices for comparable goods in the context of retail and e-commerce enterprises. Businesses can modify their own prices to be competitive and hold onto market share by routinely observing the prices of competitors.An actual example of how CPI helps businesses is provided by a retail establishment debating raising the price of their clothing line. According to the store's CPI research, comparable clothes goods from competitors typically cost $39.99, but their current price is $37.99. The retailer decided to increase its pricing to $38.99 to maintain its competitiveness and boost profit margins in light of this knowledge.