Competitive Pricing

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Dictionary Says

Definition of 'Competitive Pricing'

Setting the price of a product or service based on what the competition is charging. Competitive pricing is used more often by businesses selling similar products, since services can vary from business to business while the attributes of a product remain similar. This type of pricing strategy is generally used once a price for a product or service has reached a level of equilibrium, which often occurs when a product has been on the market for a long time and there are many substitutes for the product.
Investopedia Says

Investopedia explains 'Competitive Pricing'

Businesses have three options when setting the price for a good. They can set it below the competition, at the competition or above the competition. Above the competition pricing requires the business to create an environment that warrants the premium, such as generous payment terms or extra features. A business may set the price below the market - and potentially take a loss - if it thinks that a customer is more likely to buy other products as well.
Search results for

'Competitive Pricing'

  • The Foreign Exchange Interbank Market

    http://www.investopedia.com/articles/forex/06/interbank.asp
    Can your forex broker offer you the most competitive pricing?
    Learn how the market's biggest players affect you. ...

  • Oil Service Pricing On The Move

    http://stocks.investopedia.com/stock-analysis/2010/Oil-Service-Pricing-On-The-Move-COG-NFX-HAL-WFT-SLB0727.aspx
    ... 35%. Newfield Exploration indicated that the Bakken and the Eagle Ford
    Shale were the most competitive areas in terms of pricing. ...

  • Waiting For A Clearance Sale On Ulta

    http://stocks.investopedia.com/stock-analysis/2011/Waiting-For-A-Clearance-Sale-On-Ulta-ULTA-LULU-M-JWN-WAG-AVP-SBH0608.aspx
    ... SBH). Ulta offers a much wider selection, a large well-lit (and generally
    attractive) store footprint, and competitive pricing. So ...

  • Mergers Put Money In Shareholders' Pockets

    http://www.investopedia.com/articles/stocks/07/drive_stock_price.asp
    ... marketplace. Competitive Pricing Mergers and acquisitions are also often
    used to engineer a larger market presence for the acquirer. ...

  • Microeconomics: Making Economic Decisions - Starting A Business ...

    http://www.investopedia.com/university/microeconomics/microeconomics5.asp
    ... be convenience of location, menu specialties and a wider variety of choices, a
    friendlier ambience, a higher quality product, or even competitive pricing. ...

  • Forex Trading: A Beginner's Guide

    http://www.investopedia.com/articles/forex/11/why-trade-forex.asp
    ... This is a positive move for retail traders who will gain a benefit by seeing
    more competitive pricing and centralized liquidity. ...

  • Why You Can't Influence Gas Prices

    http://www.investopedia.com/articles/economics/08/gas-price-emails.asp
    ... of business. Competitive pricing and striving for efficiencies is the grease
    that lubricates a free market economy. If one company ...

  • April's Worst-Performing Stocks

    http://stocks.investopedia.com/stock-analysis/2011/Aprils-Worst-Performing-Stocks-X-AIG-NVLS-LXK-BRCM0502.aspx
    ... Lexmark said that the earnings miss was caused by competitive pricing and weak demand
    from the public sector. The company finished the month down by about 13%. ...

  • Serious Reservations About Open Table Valuation

    http://stocks.investopedia.com/stock-analysis/2010/Serious-Reservations-About-Open-Table-Valuation-OPEN-WEYS-DTPI-EPAX-HWKN-LULU0809.aspx
    ... just as he did back in 2009) that profits would return to historical norms due to
    stabilizing commodity prices and increasing competitive pricing pressures. ...

  • Microeconomics: Microeconomics in Action | Investopedia

    http://www.investopedia.com/university/microeconomics/microeconomics6.asp
    ... This consumer preference for necessities and competitive pricing during a recessionary
    period was also demonstrated in a reported increase in brand switching ...

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