Would you lower down the selling prices because of your competitors?

[Stardom22]

Most businesses tend to set prices depending on the prices for their competitors. So what do you go about that matter?

 

[King Belieal]

I don't use the competitor's price to set my own price. I use my own cost of production. But I set my cost of production to be realistic too.

 

[Augusta]

Yes for Increased sales:
Lower prices can attract customers who are primarily motivated by price, potentially increasing overall sales volume.

 

[Suba]

If you lower down the selling price then there will be a price war to win customers which will ultimately be detrimental, so look for other alternatives such as improving service, product quality etc.

 

[Starmix]

I won't lower the price of my product. There is uniform pricing of milk tea sales. Each seller only competes with services, so I keep training my staff to maintain their composure and patience despite a rude customer encounter.

 

[eLdavis]

The most important thing is that it doesn't affect cost of production, if i have to add my own money for production, then that's a huge loss to me.

 

[Min George]

If you can reduce your price small and it doesn't affect your profits, it gives the business some edge.

 

[Augusta]

Long-Term Strategy: Yes develop a long-term pricing strategy that balances competitiveness with profitability and sustainability

 

[Starmix]

If the products are perishable, there's no other option, that is, to lower the price to outsmart the competitors and to avoid losing hugely. The lowering of the price must not cause the seller deficit. There must still be profit despite reducing the price drastically for a moment.

 

[Augusta]

When a competitor offers a lower price, lowering prices can neutralize the threat and prevent customers from switching to the competitor.