Typically - if you are offering a product that provides more value than the competing alternative, customers will choose your offering. If your offer provides less value than its competing alternative, customers look elsewhere.
You have an online store, but how do you draw in new customers and keep them loyal? The answer is through offers, coupons, discounts and deals. It's a truth universally acknowledged that most online merchants will be faced at some time with the dilemma of whether to offer discounts, when to offer discounts and how much the discounts should be worth.
Pricing is one of the four elements of the marketing mix, along with product, place and promotion. An effective pricing strategy is vital for companies who wish to achieve success by finding the price point where they can maximize sales and profits. Companies may use a variety of pricing strategies, depending on their own unique marketing goals and objectives – and also on which industry they represent.
In a free market, competition is the norm, not the exception, and that competition will affect how you price. When competitors lower prices or new competition enters at a lower price, it is perhaps only natural to want to beat them at their own game - but the cost of price concessions may be higher than the cost of losing a customer or two.