ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Price - Performance Analysis

Updated on August 1, 2016

Price - Performance Chart

The price – performance chart is a clear, visual way of showing the value each of your products is delivering to your customers. By finding the upper and lower limits of price in a specific market and then mapping where your products and those of your competitors sit you can learn a great deal about the market and quickly identify opportunities.

You cannot just sit down and produce this chart; first you will need to do some research.

  • Identify direct competitors
  • Identify the main features of your products and competitive products
  • Identify competitor pricing
  • Rate each feature according to customer relevance
  • Set the minimum and maximum prices for the products being assessed

The chart must focus on customer needs. You may have a whole raft of cool features, but if the customer cannot see value in them, then they cannot be used to move your product higher up the performance chart. This is classic behavior in an engineering or development led organization; features get added because they can be rather than because someone unidentified a customer need that could be met.


Find the upper and lower limits by finding the most that is charged by you or a competitor for a directly competing product and the lowest price. whether you include sale or special offer pricing will depend on your market and what you are trying to achieve. If products are 'always' on sale then that is the more honest price to go with.


This is about the benefits delivered to the customer. Rate each benefit in terms of how valuable it is to the customer. Be objective when looking at competitive products. The more honesty you invest at this point the more accurate tour chart will be. If it is difficult to decide then go out and ask some customers. If you have a pool of existing customers then go and ask them which parts of the product they actually use and which ones made then decide to buy from your company.

The chart has five main areas all of which should be pretty self-explanatory but here goes anyway.

The Safe Zone

Products in this area have a good balance between price and performance. This is the right place for long term products to be.

The Good Side

From a customer perspective remember, the good side delivers more performance for the price. From the company’s perspective they could be leaving money on the table. This is a common placing when the company is following a penetration strategy to gain market share.

The Bad Side

The customer is getting less performance for the price they are paying. This placement is typical when companies are following a skimming strategy to try to recover investment cost quickly or to take as much profit as possible from a declining market.

Too Cheap and Too Expensive

Hopefully these areas don't need any explanation. Products that are too expensive rarely build a significant market share and products that are too cheap are leaving money on the table that could be going straight to your bottom line.

Price performance Chart

The Completed Price Performance Chart

When you start placing products into the chart use the size of the circle to indicate the volume of sales that product has in this market. If you don’t have that information for a competitive product, use concentric circles to show the boundaries of your best estimate.

This chart above delivers some good insights to the market we have mapped. Products two and four are underpriced and are doing well because of it. There would seem to be an opportunity in the middle of the chart for a medium price/performance product and this would be worth some investigation.

Hopefully the too cheap and too expensive areas don’t need any further explanation.

The completed chart suggests a mature market with a reasonable range of product and opportunities to investigate new product placements.

Before you draw any conclusions from your own completed chart; get a couple of colleagues to look at it and give honest opinions. If they agree with the way you have ranked the products, both yours and the competitors, then you have a good basis on which to start drawing conclusions.

price performance analysis

So, are you going to try this for yourself?

See results


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)