Competitive price is the pricing strategy adopted by businesses to attract customers and remain competitive within the market. It involves setting prices for products or services that are comparable or lower than those offered by competitors while maintaining profitability.
By offering competitive prices, retailers aim to capture market share, increase sales, and retain customers. Factors considered when determining competitive pricing include production costs, market demand, competitor prices, and consumer perception of value.
Effective implementation of competitive pricing requires a careful balance between offering affordable prices and ensuring adequate profit margins.