What is Competition-Driven Pricing?

Why let your competition control your pricing?

The premise of competition-driven pricing is that prices are set by "the market" or your competitors. It seems so simple, obvious, and grounded in hard reality. Many people claim this is obviously the correct way to set prices. However, it was quickly dismissed by almost all the sources I researched for my pricing course, even by authors with a very sales-oriented background. In this video, I'll:

 - Explain the proper role of competitor prices when setting your pricing strategy and tactics 

 - Show how reducing market share and sales units might be better for profits

 - List the pros and cons of competition-driven pricing

This video comes from my Pricing for Profitability Course

CPAs: Want to get CPE credit for videos and courses like this? Check out my CPE page.

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