A price war can be disastrous for any company, but can also be an opportunity to strengthen your market position. For example, Citroën was able to make use of the recession to realize more income in the long run by making a loss on their C1 models. Curious how?
Do you recognize this? You try to book a vacation and it all seems fine. You see nice prizes and you think: YES !! You click on a vacation to Tenerife for € 49,-, you come to the next page and … it costs (only) € 389,- because of administration costs, taxes, extra options you don’t want but are required etc.
By comparing, you get good insight into market price averages and excesses. You can then see if it is possible to adjust your prices or even go under the market price, or decide to ask more and offer extra service and quality. The price calculation is completely dependent on what you choose as a strategy.