How do you respond to competitors' price changes?

Asked 2 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?

Competitors adjust the pricing Pricing strategy Product prices

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.