Competitive Pricing

Competitive pricing is all about pricing your product…competitively. With the market.

Bob charges $8 for a haircut a la Flowbee. You can charge $7 for basically the same Flowbee haircuts to, um, undercut Bob. Or you can charge the same price...8 bucks...and try to upsell the client to buy Band-Aids, maybe a shpritz of good-smelling goo, a scalp massage, etc., once the customer is in the seat. Or maybe it makes more sense to charge $9 in a bundled sale for the whole thing, because your barber shop has better chairs and a better location.

Your goal is to do more business than Bob, and maybe eventually drive him out of business...at which point you can raise prices to 12 bucks with impunity. All of these nefarious thoughts comprise the foundation of competitive pricing. That is, the pricing itself can be a business weapon.