What role does competitor analysis play in pricing?

Competitor insight sets the outer guardrails of your price corridor. Track rival list prices, promotional cadence, and stock‑out patterns, then compare those signals with your own cost‑to‑serve and brand position. Consequently, you can raise rates above the median where differentiation is strong or deploy tactical discounts where parity products clash. Still, avoid following every markdown; instead, feed competitor data into elasticity models that quantify the margin you trade for share. This disciplined approach keeps you responsive without creating destructive price wars.