3. Competitor based pricing

3. Competitor based pricing

Competitor-based pricing is simple. If you entering a market that already has multiple players; you can price your product higher/lower than your average competitor's price or just match it.

BSNL Fibre launched (in Oct 2020) exactly one year after Jio Fibre & Airtel Xtreme Fibre offered almost identical prices for the same offerings.

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  1. Higher-than-average price ➡ ****When you want to signal luxury or a promise of 10x better product to potential customers.
  2. Lower-than-average price ➡ When you’re trying to undercut the competition and acquire customers quickly.
  3. Match-the-average price ➡ When you want to signal that you are offering a better product/service at an identical price & want to grab a pie of the market.