Competitive pricing

• What is competitor pricing based on?

  Competitor prices
• If a business's prices are higher than competitors, consumers may opt for a lower-priced product
• Lower prices than competitors always result in higher profit margins.

  False
• What happens if a business sets prices lower than competitors?

  Lower profit margins
• Competitive pricing can create a consistent positioning
• Competitive pricing is primarily a defensive strategy to sustain market share.
• Which industry frequently uses competitor pricing?

  Supermarket
• Dynamic pricing makes competitor pricing more straightforward
• What is one downside of competitive pricing?

  Lower gross profit margins
• If competitors have unsustainable prices, replicating them can be a mistake.
• Why might a new or smaller business struggle with competitive pricing?

  Lower gross profit margins