competitive pricing
Matching rivals' costs
Competitive pricing is setting prices based on what rivals charge rather than on costs or perceived value.
Businesses monitor competitors and position themselves accordingly—matching, undercutting, or slightly exceeding market rates.
Their competitive pricing helped them gain market share.
The strategy assumes customers compare options and that price differences influence purchasing decisions.
- price warsCompeting through lower costs
- race to the bottomCompetition through degraded standards
- price matchingAdjusting to competitor costs
- loss leaderDeliberately unprofitable merchandise
- discountReduced price offered
everyday low prices · price sensitivity · supply and demand · marginal cost · economies of scale · affordable · value for money · comparison shopping · sticker shock · price point · undercutting · market segmentation · profit maximization · bottom line · price discrimination · markup · margin · wholesale
- pricingdiscount price, overpricing, discounts, overcharge, markdowns
- business strategystrategy, competitive advantage, market share, profitability, differentiation
- market rivalryrivalry, rivals, competitors, price war, price wars
- financebank, CFO, banks, controller, finance
- economic policymonetary policy, tax policy, fiscal discipline, fiscal stimulus, fiscal restraint
- legal feeslegal fees, attorney fees, hourly rates, legal costs, fees
competitive pricingoverpricing
Charging beyond worth
price gouging · premium pricing · inflated prices · predatory pricing
competitive pricingpredatory pricing
Below-cost selling to eliminate competition
hidden fees · deceptive pricing · surge pricing · dynamic pricing