Competition-based pricing strategy of Consultancy services

Competition-based pricing strategy: Such a strategy is based on competition.

Here the consultants have three options, the first “to beat”, second” to meet” and the third “to lead”. In other words, in the “to beat” strategy, we find emphasis on lower price structure so that the price is used as a motivational tool and the clients are motivated. In the “to meet” strategy, we find focus on similar price structure whereas in the “to lead” strategy, we find emphasis on charging higher than the competitors. But this strategy is not suitable when the intensity of competition is high.