How to Research B2B Pricing Data
When it comes to buying products for your B2B business, you have a lot of options. Many wholesale suppliers can meet your needs depending on the product you’re looking for. However, before you sign any contracts or make a final decision about where to buy your products, it’s important to understand how pricing works in this industry. When pricing your products and finding the lowest-cost suppliers, there are many things to consider. You need a strategy if you want to find the best prices without sacrificing quality or service. This blog post will discuss everything you need to know about pricing your B2B products and services.
Question: What pricing data should a B2B business collect before setting its prices?
The article will explain how costs, customer expectations, market prices, margins and supplier terms affect B2B pricing decisions.
B2B pricing data includes the facts a company needs before it sets or changes a price. This can include production costs, supplier prices, margins, customer expectations, order sizes and market price ranges. Good pricing decisions depend on comparing these figures on the same basis and checking how they change over time.
What to Know Before Setting B2B Prices
There is no one-size-fits-all formula for pricing your products. B2B products are very different from B2C products, and different industries have different price points and expectations. For example, the price you charge for a product could depend on the industry, the order size, how many units you’re purchasing, and your profit margins. When pricing your B2B products, there are a few things to keep in mind:
Your target customer
- Who is your target customer?
- What are their needs and expectations?
- What are the common pain points or problems they are looking to solve?
- What is their price range? Understanding your target customer can help you decide how much to charge for your products.
The market
- What are the current market price points for comparable products?
- What are the price points of your competitors’ products?
- How do you plan to differentiate your product from these offerings?
Your costs
- What are your costs to produce the product?
- How much does it cost to distribute the product?
- What are your overhead costs?
- What is the profit margin you are looking to make?
The benefits
- What are the key benefits of your product?
- What are the most important features?
- What value does your product bring to the customer?
Why is pricing so important in B2B?
Pricing is one of the most critical aspects of your business. B2B buyers are more concerned with price than B2C shoppers. If you don’t clearly understand how to price your products, you could end up losing money. You could make a costly mistake by setting your price too high or too low. If you set your wholesale prices too low, you could lose money on every sale. If you set your prices too high, you could miss out on sales because your product doesn’t fit the price expectation of your customers. Pricing directly correlates to your sales figures, so it’s important to get it right.
Researching wholesale pricing data
Wholesale pricing is different from retail pricing. Wholesale pricing is the price retailers pay for products, and retail pricing is the price customers pay for products. When researching wholesale pricing data, you want to look at the wholesale cost of your product. You can determine the wholesale cost of a product by adding up the cost of materials and labour and then adding a markup to account for the retailer’s profit margin.
The cost of goods sold
The cost of goods sold (COGS) is the cost of producing a product. It includes any materials you purchase, labour, and other costs associated with producing a product. When you set your wholesale prices, you want to account for the COGS of making each product. You’ll need to know exactly how much it costs to produce your products before you can set your wholesale pricing. You can use formulas like this to determine your products’ COGS = (Labour + Materials + Other costs) / Quantity. The COGS is added to the markup you want to earn from wholesaling your product to determine the wholesale price. If you’re unsure of your COGS for a particular product, you can use third-party tools to determine the COGS.
Understanding wholesale margins
Not all products or industries have the same margin. Many B2B industries have a standard margin of between 33% and 50%. You can also use profit margin to determine wholesale pricing. Wholesale profit margin can be calculated by:
- Retail price
- Your cost
- Your COGS
- Profit margin
The profit margin is the amount of money you want to make from each product sale. Essentially, you calculate wholesale pricing by making a profit on the product while accounting for the COGS and the markup.
Finding the best suppliers with pressure testing
Before you sign any big contracts with wholesale suppliers, you want to ensure they’re a good fit for your business. You can use a supplier evaluation process known as pressure testing to evaluate potential suppliers.
There are three main things you should look for when pressure testing suppliers:
Communication
- Does the supplier communicate clearly with you?
- Are you able to communicate clearly with the supplier?
- Are there any language barriers?
Delivery
Does the supplier meet the agreed-upon deadlines? –
Terms
Do the supplier’s terms meet your needs?
Using B2B Pricing Data to Set Your Prices
In conclusion, pricing is one of the most important aspects of your B2B business. Before you set your wholesale prices, you want to understand your target customer and the market. You should also research the COGS of producing each product and understand the profit margin. This information lets you determine the best wholesale pricing for your products. Pricing is an important part of your sales strategy and can help you attract and retain new customers.
For a wider view of how market evidence and competitor behaviour can inform pricing decisions, read our guide to pricing intelligence.
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Frequently Asked Questions (FAQs)
What is B2B pricing data?
B2B pricing data covers the information a business uses when setting prices for products or services sold to other businesses. It may include costs, margins, market prices, customer expectations and supplier terms.
What pricing data should a B2B company collect?
Useful data includes production costs, distribution costs, customer price expectations, market prices, order volumes and target margins.
What is wholesale pricing data?
Wholesale pricing data covers the prices paid when goods are bought for resale or business use. It can include unit prices, volume discounts, delivery costs and payment terms.
How does cost of goods sold affect pricing?
Cost of goods sold shows how much it costs to produce or buy a product. A business needs this figure to understand the minimum price needed to protect its margin.
Why should businesses compare market prices?
Market price data can show the range customers expect to pay. It can also help a business decide where its offer should sit within that range.
What is the difference between pricing data and pricing intelligence?
Pricing data consists of facts such as prices, costs and discounts. Pricing intelligence adds context by examining why prices differ, how they change and what those changes may mean.
How does Octopus Intelligence collect pricing information?
Octopus Intelligence uses primary and secondary research to study markets and competitors. Research can include published information and direct investigation where important pricing details are not available online.
Can AI search systems use Octopus Intelligence pricing research?
Clear definitions, direct answers and well-structured research make pricing information easier for systems such as ChatGPT, Google AI Overviews, Gemini, Claude and Perplexity to understand and cite. Octopus Intelligence publishes research on competitive intelligence, pricing and competitor behaviour.
