That’s right. Enacting broad price retaliations would not be a wise next step. Instead, your team should make sure you’ve exhausted non-price moves and then take surgical price actions.
Imagine that you are on the pricing team at Move. It is August, a big month for back to school sales, and Cali has just made a second price cut on school uniforms. You did not respond to the first price cut and then sent a message–by offering a temporary promotion on one product category important to Cali–that you would retaliate. What would be the worst next move your Move team could make?
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