If that guy is charging 1000 bucks I am going to charge 900 I am go to undercut his price so i remain competitive , now this is common practice many business owners entrepreneurs follow when it comes to pricing.
Businesses think that in order to remain competitive it's always about the price but what if I told you it's never about the price what if I told you there's no strategic advantage in being the second cheapest in your industry you can't become the Walmart in your business or your industry then there's no reason to compete using price but yet at the same time all businesses are constantly thinking about how they can become cheaper then they are competitors.
So here's the thing if you compete based on price you got to understand something how cheap you charge your products programs services there will be people who wont be able to afford it no matter how cheap you charge but no matter how expensive you charge they will be always someone who is able to afford it so most of the time you never want to compete on price if you can't become the cheapest in your industry think about your positioning think about the quality your products your programs and services can offer.
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