Competition-Based Pricing: A Comprehensive Guide with Real-World Examples

Competition-based pricing is a strategy where businesses set their product prices based on competitors' prices. It involves examining how competitors structure their pricing tiers, identifying what features they emphasize, and understanding their core value metrics. This method can be used in various sectors like B2B and B2C, including CRM and web design examples. However, relying solely on competition-based pricing risks missing out on maximizing profits and diluting brand uniqueness. Companies should use this strategy alongside other methods such as value-based pricing to create a balanced and effective approach that respects both market standards and product value.