Competitive pricing is a reliable route to brand failure

Brands fail.

You could even argue failure is their natural state.

If a brand reaches 6 years of trading, they’ve statistically ‘beaten the odds’ which sees 60% of all brands never make it past year 5.

And as time progresses, the likelihood of failure increases even higher.

So if you're comparing your prices to the competition and thinking 'Maybe I can slash prices and make up the lost profit margin with bumper sales volume' then remember, even if you win the race, there's a good chance the finish line is insolvency.

Shrinking margins lead to the #1 reason for brand failure (running out of cash).

And statistically, it's more likely than not that any given competitor you look at is already on the road to failure.

Brands and founders will only ever post their wins, so you never really know if a brand is on fire, or burning to a crisp.

So never base your pricing on what a competitor or brand you aspire to be like is doing.

Your competitors only dictate your pricing if you allow them to.

You have your own unit economics. And breaking them with competitive pricing is a choice that’s entirely in your own hands.