What is a competitive price?
Competitive prices is the process of setting goods and services prices based on competitors' prices. Deciding whether to charge more than, less than or the same as competition is the main part of the price strategy. Competitive prices are usually analyzed in terms of undercutting the competition or billing the price below the market. However, there is a gentle boundary between healthy competition and illegal anti-concurrency practices. Owners of enterprises must ensure that competitive prices do not catch forbidden predatory prices. Theoretically, the company owner has three options. It can find other companies that sell the same or similar products in their part of the country and harmonize its prices with current market prices. Alternatively, he can try to distinguish his products as better than what is currently on the market and fee. Finally, it can appreciate its products lower than the market and effectively undermine the competition.
these price stsRategies are the basis of competitive prices. Owners make important decisions on prices on the basis of a relationship they want to have with their competitors. Determination of prices on the market or over the market rarely causes any problems with other owners to the owner of the company. In accordance with the market, it sets the company on the course to maintain the current state. Determination of premium price creates a new market and requires a marketing strategy that focuses on persuading consumers of unique product attributes to justify a higher price.
, however, can have different consequences. This kind of competitive price of prices is most directly pulled by customers from the competitors' pockets. The business environment is likely to become hostile if the new Opera business is intended to use lower prices to attract customers. Such tactics can lead to a price war, where businesses return and back with a reduction in prices. Price wars are beneficial for customers, but are unsustainable for participating companies.
Governments monitor the price of undermining carefully. While normal competitive prices are supported, the determination of low prices so that a competitor from a business can be considered as anti-competing predatory prices that make the market more susceptible to the monopoly. Usually, if the company owner can set prices lower due to efficiency in its business operations, it is considered to be simple competitive prices. However, if the company owner uses cash reserves to maintain lower prices and increases prices as soon as the competitor starts from the business, the strategy is likely to be predatory.