What is competitive pricing?

Competitive pricing (or competition-based pricing) is a strategy that sets prices primarily by reference to what competitors charge — at, below, or deliberately above the market rate — rather than from internal costs or measured willingness to pay.

It is common in markets with comparable offerings, where buyers open three pricing pages side by side. Doing it well requires current data: competitor prices, plan structures, and discounts change often, which is why teams automate price monitoring instead of re-checking pages by hand.