How To Avoid A Race To The Bottom

Posted by Moira McCormick on September 4, 2018

There is a real danger in “race to the bottom” pricing – basically, no one wins. 

By automatically diving to the bottom price all you’ve done is dented your profit margin and your reputation – and lowered the perceived value of your product. 

Read More

Topics: Competition, Competitor Pricing

How Upstart Companies can Use Pricing to Beat the Competition

Posted by Moira McCormick on October 12, 2017

According to Jack Welch, the former CEO of General Electric (GE) “if you don’t have a competitive advantage, don’t compete”. In a nutshell, he meant don't bother getting into the fray if you don't intend to win!

Read More

Topics: Pricing, Competition

How to Price a Product in a Competitive Market

Posted by Moira McCormick on October 13, 2016

When two products or services have similar core features, but are produced by different companies, competition results.

A competition-based pricing strategy involves setting your prices based on your competitors’ prices rather than on your own costs and profit objectives. If there is a close gap between costs and the actual selling price then there is going to be an even greater competition on price.

In a perfect world there would always be a larger margin between costs and selling price to comfortably increase your profits – but, stop press, it's not a perfect world!

Read More

Topics: Pricing Strategy, Competition, Product Pricing

Why You Should Understand Your Competitors' Pricing

Posted by Moira McCormick on October 12, 2016

Competition is the norm, not the exception in a free market - and that competition will affect how you price.

Just take a look at the UK grocery market and how it has become increasingly competitive in the past few years. The growing strength of discount giants like Aldi and Lidl have really shaken things up. Pound shops are also gaining market share and nibbling away at the precious margins of the big supermarkets.

Read More

Topics: Pricing, Competition

Online Pricing: How to Beat the Competition

Posted by Moira McCormick on July 11, 2016

Wouldn't you have an easy life if you could sell your products and services online for whatever you wanted – and your customers didn't complain at any stage – or go elsewhere? Obviously this might seem like a bit of a fantasy but it's entirely possible to achieve if you're using the right methods of pricing.

Read More

Topics: Pricing Software, Pricing Strategy, Competition

How to combat the pressures of competitive pricing

Posted by Moira McCormick on March 31, 2016

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.

Read More

Topics: B2B, Price War, B2C, Competition, Discounting

    Most Popular

    Topics

    See all