Analyzing Competitor's Prices and Offers

Price of any product is determined by the demand of the market and the company'scost. A company should consider competitor's pricing, cost and possible reaction of the consumers to the price before pricing the product. A company should keep a track on the competitor's prices and the offers. There can be any of the three possibilities a company has to be taken care of i.e.

•  If a company's offer is similar to the competitor's offer, then the pricing should also be almost similar to the competitor's pricing.
•  If a company's offer is not up to the competitor's offer, then the company should keep the product pricing low.
•  If a company's offer is better than the competitor's offer the company can keep a price higher than the competitor's price.