How do you respond to competitors' price changes?
Asked 3 years ago
A Shopify competitor lowered their product prices. This means I must reduce mine too, right? It makes sense that I do, but I also don't want to start a price war and land myself in a bucket load of *%$#@. What do I do?
Christopher Cardenas
Sunday, February 20, 2022
Brand leaders, when responding to a price cut by their competitors, should adopt different approaches based on the underlying reasons for the price change; some of them are as follows:
- Follow the competitor's price change and reduce it accordingly while considering all the other variables affected by this decision.
- Do not change the price if the profit margin is already thin.
- Another approach is to continue with the current price while increasing the value of your products or services.
- Businesses can also introduce new and innovative product variants while keeping the prices constant.
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