Page 86 - EBOOK DPM 10013 POM-FINAL 25.10.2021
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( iii ) Competition-based pricing
Advantages:
It keeps an eye on existing emerging rivals in the industry and provides smart data to
make more effective pricing decisions.
Setting the right price according to market state helps gain competitiveness.
Disadvantages :
You risk losing profits if you do not take into account information on your purchase price
and margins. You need to check on your price elasticity
It needs and effective price monitoring system. Automation is key in this respect to avoid
manual tracking
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