Competitive Pricing

Competitive pricing is a pricing strategy in which a business sets its prices equal to or lower than its competitors' prices. The goal of competitive pricing is to attract customers by offering a lower price than what competitors offer for the same product or service. Competitive pricing can be beneficial for businesses as it can help them gain a competitive advantage and increase sales. For example, a restaurant may offer a lower price for a certain dish compared to other restaurants in the area. Similarly, a clothing brand may offer a discount on a product to compete with similar brands in the market. However, it's important to note that competitive pricing may not always be the most profitable pricing strategy for businesses, as it may lead to lower profit margins. Therefore, businesses should carefully consider their pricing strategy and analyze the market before implementing competitive pricing.