Competitor prices are important to look for when pricing a product. If you can set a price that's lower than a competitor and still make good profit, then you should do so. With some companies, products are usually set at a low price when first released and an extra promotion product is available with it. When that occurs more consumers go for that product so that their competitor loses sales and the other company gets the higher majority of the market for that product. When promotion is over the price goes back up after the competitor is beat. Pricing is a strategy for companies so that they can make profit as well as hurt the other competitor by gaining their products do to better pricing and quality. If you had to identical products in front of you, would you rather by the lower cost product if it came with an extra accessory?
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