![]() ![]() ![]() A Competitive Pricing Strategy focuses entirely on publicly available information about your competitor’s prices, not customer value. It is a type of pricing strategy that is in direct comparison to other pricing strategies like cost-plus pricing or value-based, where prices are determined by analyzing other factors like consumer demand or the cost of production. What that means is that a competitive pricing strategy is a pricing method that involves setting the prices of your businesses’ products in relation to the prices of your competitors. What is Competitive Pricing Strategy? – The DefinitionĪ Competitive Pricing Strategy is also known across the pricing industry as competitive-based pricing or competitor-based pricing. To help you decide, let’s examine exactly what a Competitive Pricing Strategy is, your company’s competitive pricing strategy choices, refined competitive pricing strategy types to achieve specific outcomes, the most famous competitive pricing strategy and the strategy’s pros and cons. ![]() After reading this article, you may decide that a competitive pricing strategy might be just the thing for your business, but for another company it might not be suited at all. In this article we analyze just one example of several different pricing strategies Competitive Pricing Strategy Explained: The Pros & Cons.Īt Pricefx, we have assisted hundreds of companies over the last 10+ years in optimizing their pricing and learnt that no two businesses are identical in what they need from a pricing strategy solution. There are plenty of methodical pricing models and strategies that can help set the right prices for your customer and business objectives. Thankfully with each passing year, pricing is becoming more about science and less like a lucky flip of the coin. On the flip side, if you set your prices too high, you might risk not getting the sale in their first place. If you set your prices too low, you might leave valuable profit at the checkout. Pricing your products and services can be a tough assignment for any business. ![]()
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