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!

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Topics: Pricing Strategy, Competition, Product Pricing

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