Pricing Strategy: Competitive x Non Competitive

How do you assure your quotes are better than those of close competitors whilst satisfying market rates and all so too keeping tabs on inhouse situation? 

Although benchmarking is somewhat a reliable tool when looking to keep up with competitor pricing - such isn't always the best strategy when looking to be on top of your game, as economies of scales tend to differ and the market environment ever changing - where rates are concerned - at which take a toll on commodity valuation. 

Competitors with greater economies of scale may employ pricing strategies that are ignorant of market as well as cost based indicators all in purpose of driving the competition out of business. 

With such, benchmarking becomes redundant - atleast in the long run, as operational shortcomings are subsequent where looking to imitate without operational capacity to drive costs down. 

To answer the question - no 'one trick pony' is of avail. 

A solid strategy ought to entail product quality as the basis of pricing mechanism, with a lean and mean approach in regards to channels of production where sourcing is concerned and so too distribution measures to keep margins and costs favorable. 

Cost based pricing of quality product ought to see a core loyal customer base that gravitate to the products bearings rather than price. Capitalizing on competitor strategy then becomes secondary so as to either attract new customers on various instances such as on a seasonal basis whilst too employing adjustments in accord to market rates. 

In short, a solid pricing mechanism will look capitalize on quality and margins at which become a basis to modify in accord to market situation and competitor activity. 

Extract from personal 'Sales and Marketing Directory' 

@MacMungyIntellectual