The implications of a competitor's pricing strategy on your product's pricing can be significant. If a competitor prices their product lower, it could potentially draw customers away from your product, leading to a decrease in sales. Conversely, if a competitor prices their product higher, it could make your product appear more attractive and affordable, potentially increasing your sales. However, it's important to consider other factors such as product quality, brand reputation, and market share. A competitor's pricing strategy can also influence your own pricing strategy, as you may need to adjust your prices in response to remain competitive.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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