//Competitive Match Pricing Methodology
Competitive Match Pricing Methodology 2017-08-10T17:22:36+00:00

Competitive Match Pricing Methodology (see also. Market Pricing)Using competitor pricing as a basis of setting and changing pricing according to market changes. Price decisions are done according to market pricing, and some might be higher or lower. This method keeps prices competitive but also leaves room for error when price premium might be available. Often used with ABC-analysis where A-group prices a priced more aggresively and C-category prices might be priced with higher premium. advertised priceOffering the exact same price as your competitor puts the customer to a evaluation situation. Customer then compares your product with your competitors product, and probably chooses the one which gives more value for that price.
You can also price your product below the price your competitor offers. This setting is interesting to the customer, but creates risk to your business. That is why you need to be careful when pricing below competitor prices. Always evaluate the situation accordingly, because this method might bring in negative cash flow.
The last thing you could do is price the product above what your competitors charge. There are two things you need to take into account when implementing this method: customer probably expects more value of your product or service, since your product costs more than the one of your competitors. And you have to make sure you can answer to these customer expectations, since if you don’t, you lose your customer to your competition.