The price you’re matching may be a balance sheet, not a strategy

A competitor's price tells you something real, but often about how they are funded rather than how efficiently they work.

By Steve 5 min read
Abstract bridge artwork for The price you’re matching may be a balance sheet, not a strategy

A competitor holds a price you have modelled three times and still cannot reach without losing money. Two explanations present themselves: they are better at this than you are, or they have lost their minds. Both are usually wrong, and both lead somewhere expensive: the first to matching a price you cannot sustain, the second to dismissing a competitor who will still be there in five years. There is a third reading, and it is the most common one. Their price is achievable for them because their cost base, their…

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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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