What is Competitive Pricing in Retail? Explained

Competitive pricing is a strategic pricing strategy where a business sets its product or service prices in alignment with those of its competitors. The goal is to remain competitive within the market and attract customers by offering comparable or better value for a similar price. This strategy requires continuous monitoring of competitors' pricing, understanding market dynamics, and adjusting prices accordingly. While competitive pricing can contribute to customer acquisition, businesses must also consider factors such as quality, brand perception, and overall value to maintain a competitive edge and sustain profitability.