Successfully navigating pricing challenges in a competitive environment requires a comprehensive understanding of your value proposition, segmented by customer type, and supported by price data and pre-approved responses. With these in place, your business will be in a strong position to rise above the competition, as the author explains.
How does competition-based pricing work? And when does it make sense to use it? In this article, the author analyzes the pros and cons of competitive pricing and its application, especially in the context of rising global inflation. In the current environment, the majority of companies will need to examine how they can increase their prices rather than drop them to match the competition, as the author explains.
If your competitors continue to outperform your market offerings in terms of sales volume, despite the fact that you offer both higher quality and lower prices, there are four critical elements you need to analyze in order to identify the cause, as the author explains.
Cognos, a market leader for business intelligence software, found itself in an increasingly difficult competitive position. Its closes rival, Business Objects, was threatening the status quo with a new market approach and new list prices that were 50% lower – a level guaranteed to induce sticker shock to even the most loyal of Cognos’ customers.