The competitor cut price 12%. Most of your customers will never hear about it.

A rival drops price and the instinct is to match. The arithmetic of matching, and the question of who is actually exposed, usually argue otherwise.

By Steve 5 min read
Abstract bridge artwork for The competitor cut price 12%. Most of your customers will never hear about it.

A competitor announces a price 12% below yours. Within days somebody in sales has forwarded the evidence, somebody in marketing has drafted a response, and the meeting has already narrowed to a single question: do we match, and by how much? That framing is the problem. It treats a rival’s decision as an event that happens to your entire customer base at once, when in most businesses it happens to a minority of it, and it skips the arithmetic that determines whether matching can work at all. What matching actually…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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