Competitive pricing is a pricing strategy in which a company sets the prices of its products or services based on the prices charged by its competitors. The aim is to establish a competitive and attractive pricing structure within the industry or market. This strategy involves monitoring and analyzing the pricing practices of competitors and adjusting one’s own prices to either match, undercut, or differentiate from the competition.
The goal of competitive pricing is often to gain a competitive advantage, attract more customers, and increase market share. This approach requires ongoing assessment of competitors’ pricing strategies and responsiveness to changes in the market to ensure that the business remains competitive and aligned with customer expectations.