Parity pricing strategies for increased competitiveness

When you’re competing for market share, one common tactic is to underprice your competition. However, to steer clear of the potential drawbacks of a price war, employing parity pricing is the recommended strategy. Let’s investigate parity pricing, when businesses use it, and the alternatives.

Parity pricing is a pricing strategy where you set your prices to be the same as your competitors. You do not try to underprice them. But you also don’t increase your prices based on a stronger value proposition.

Within your own business, parity pricing also means you don’t charge different…