Competition can significantly impact pricing strategies. In a highly competitive market, businesses often need to lower their prices to attract customers. This can lead to a price war, where competitors continually undercut each other's prices. On the other hand, in a market with little competition, a business can set higher prices. However, they must ensure that the price reflects the value of the product or service to the customer.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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