What Is Competition-Based Pricing?

Competition-Based Pricing

Competition-Based Pricing aligns your product or service pricing with market competitors, influencing strategic decisions.


Examples of competitive-based pricing include offering the lowest cost, premium pricing, or implementing price match promises.


Advantages of competition-based pricing include customer familiarity, quick implementation, and insights from competitor price changes.


Disadvantages involve profit risk, pressure from external competitors, and the challenge of positioning as a premium option.

Competition-Based Pricing Strategy

Setting up a competition-based pricing strategy requires thorough research on competitors, their pricing strategies, and understanding customer expectations in the market.