analycess procurement | Price Comparison Analysis

We help to make your estimation more accurate than your competitor’s calculation

Price regression analysis, also known as “Multidimensional Linear Performance Pricing”, analyses the correlation between the price and any other characteristics of the investigated products. As a result, it delivers a linear approximation of the “expected price” or “technical value”. Effectively, it performs a price comparison that reflects the incorporated characteristics of the product. The “value graph” is a graphical comparison of the actual price (on the vertical axis) and the technical value (on the horizontal axis). One glance, suffices to identify the expensive products above the line and the cheaper products below the line.

The application of price regression analysis is particularly valuable for products (materials, parts, services), that are available in a broad range of similar, but not identical varieties. The most interesting insights are generated from the comparison of prices across different suppliers, from different regions or at various sites.