Is the price matching strategy good for business?
Asked 2 years ago
I'm looking at the different pricing strategies I could use, and price matching seems like a good one. What customer wouldn't want to buy from you to match the lowest price? However, since everything has a flipped side, I couldn't help but wonder: Is it really good for business? What are the disadvantages?
Richard Woods
Sunday, February 20, 2022
Price matching strategy offers loads of benefits for the business, but one must not overlook the downside of this technique.
Let's take a look at three major pitfalls of price matching strategy:
- It can reduce the company's profit margin, further creating financial problems for your company.
- It may start an uncontrollable price war between competitors.
- For a small business, it increases the probability of losing customers.
In the end, pricing your product is not a universal strategy but entails a couple of variables to think over. Do the market analysis, study your competitors' pricing strategy, identify your target audiences' purchasing power, consider your margin, and price your products accordingly.
Juan Mark
Monday, May 16, 2022
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