Competition can greatly influence pricing strategy. If there are many competitors offering similar products or services, a business may choose to set a price similar to or lower than their competitors to attract customers. This is known as competitive pricing. On the other hand, if a business offers a unique product or service, they may choose to set a higher price, known as premium pricing. However, businesses must also consider other factors such as cost, customer price sensitivity, and market share when determining their pricing strategy.
Need to evaluate the best pricing strategy for a product? This Pricing Strategy spreadsheet includes...
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