Competitive pricing model

A competitive pricing model is a strategy where a company sets its product or service prices based on what other businesses in the same market are charging. Instead of simply aiming for the highest profit, the company considers the prices of competitors to attract customers while maintaining profitability. This approach helps ensure the company's offerings are attractive and fair in the market landscape, encouraging customers to choose their product over cheaper or more expensive alternatives. It involves continuously monitoring competitors’ prices and adjusting accordingly to stay competitive.