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Price insights

Price insights is a Merchant Center report that suggests a sale price for a product and predicts how its clicks and conversions would change at that price.

How it works

Google simulates a product’s performance at different prices over the past 7 days and suggests a sale price. The simulation takes into account the product’s price elasticity and data from similar businesses. Next to the suggestion come the predicted change in clicks and conversions and an effectiveness rating. The rating, High, Medium or Low, ranks the predicted performance boost.

To get suggestions, a store must report purchase conversions. Cart data, cost of goods sold and a minimum price can improve them. Suggestions appear only where Google predicts a significant improvement, and the predictions guarantee nothing.

None of these figures shows what the new price does to the profit on each sale. For that you need your own margin. Our guide on whether to follow Google’s suggested price shows how to check a suggestion before applying it.

Where you see it

  • Merchant Center: Analytics → Pricing, the sale price suggestions card.
  • Portal: the feed screen shows Google’s suggested price, where Google names one, next to your price and the market price.

Example

Example store, not client data.

The tableware shop sells 20 dinner sets a month, one per order, at 600. Each costs it 390, so gross profit is 20 × 210 = 4,200. Google suggests 540 and predicts +20% conversions. At 540 the profit per set is 150: 24 × 150 = 3,600. To keep 4,200, the shop would need 4,200 ÷ 150 = 28 sets, or +40%.

Not to be confused with

  • Price competitiveness — where your price stands against the benchmark. It suggests nothing.
  • Automated discounts — Google applies sale prices itself. While the add-on runs, suggestions no longer appear.

Right and wrong readings

  • Wrong: “High effectiveness, so the new price pays off.” Right: effectiveness ranks the predicted performance boost; the report shows no profit figure. In the example, +20% conversions at 540 leaves 3,600 of gross profit against 4,200.
  • Wrong: “No suggestion, so our price is right.” Right: Google shows suggestions only where it predicts a significant improvement, and only to stores that report purchase conversions.

Sources